Copia di FIAT FCA Competitive Structure PDF

Preview

Summary

Download Copia di FIAT FCA Competitive Structure PDF

Description

FCA COMPETITIVE STRATEGY When they chart the strategic planning, managers of the company seem to have kept in mind both the external and internal factors which required attention and to have created a sort of mitigation pan for dangers and threats that could derail their plan. In making their strategic plannig it is clear that all four elements of Corporate, Business, Functional and Operational have been considered and clearly outlined.

Competitive advantages in the Marketing strategy of FCA Strategic focus on re-strengthening the brand Since the company has reorganized its automobiles business, it has been trying to optimize its resources by exiting loss market, decreasing employee headcounts and many others steps which are helping the company in managing its operational cost. Broad Portfolio: Presenting such large number of brands in its product portfolio is clearly beneficial for the company as for as competition, penetration in the emerging market and economies of scale is concerned.

Technical standards and working environment FCA can count on high technical standards and close integration with the product development activities of customers. The working environment at FCA encourages speed, efficiency and quality, as for example procurement and supply specialists work closely with mechanical engineers and suppliers to identify the fewest number of components that meet the stringent requirements of the vehicles which are producted.

Fiat Chrysler Automobiles N.V Porter Five Forces Analysis Threats of New Entrants ( Low ) Companies which want to enter in the automotive industry bring innovation, and this cause a big pressure on Fiat Chrysler Automobiles N.V.due to the strategy of using low prices and a cost reduction.. Fiat Chrysler Automobiles N.V. has to manage all these challenges and build strong barriers to safeguard its position in the market. Anyway the entrance in this market is very hard, and this is due to several factors : Big automotive companies like FCA can count on the loyalty of their customers, and on the fact that the barriers to enter in this market are consistent; furthermore high capitals are a key factor to join the automotive industry. Furthermore new entrants are less likely to earn a position in the market where established companies such as FCA keep defining the standards regularly.

How FCA can handle Threats of New Entrants FCA can handle the Threats of New Entrants by trying to innovate services and products. Innovation not only bring new customers to the fold but also strengthens the loyalty of old customers. Another way id by building economies of scale so that it can lower the fixed cost per unit.

Bargaining Power of Suppliers ( Moderate) Strong suppliers can lower the profitability of FCA and other established companies of the market. Anyway this is a moderate risk for the players of this market for the fact that they can count on the low cost in switching suppliers and on the fact that they can access to diverse channels of distribution.

How FCA can handle Bargaining Power of the Suppliers The company can react to this threat by choosing to have a various suppliers and by investing on the usage of different kind of materials, so that they can easily switch from one material to another; furthermore by establishing a good relationship with its suppliers, the company can count on a loyal supply line which does not represent a threat for the business.

Bargaining Power of Buyers ( Low ) The bargaining power of customers gets much stronger when the company relays on a small and powerful customer base. Anyway this does not represent a big threat for FCA and other companies of the market, because they can count on limited bargaining leverage and on the fact that customers are not very sensitive to price. Furthermore if customers particularly like one product they end up paying more for it and this affects positively FCA and the other members of the market. How FCA can handle the Bargaining Power of Buyers Building a large base of customers would be helpful not only because it would lead to a reduction of this threat but also it would make it easier for the company to streamline its sales and production process. Furthermore the defection of FCA’s customers to other companies of the market can be avoided with a constant innovation.

Threats of Substitute Products or Service ( Moderately High ) When a new product or service meets a similar customer needs in different ways, industry profitability suffers

How FCA Can handle the Treat of Substitute Products / Services FCA can avoid this threat by trying to rise the costs for customers to switch from one product to another and by trying to understand what a customer really want. Furthermore FCA should prefer a service orientated approach rather than a product orientated one.

Rivalry among the Existing Competitors ( High ) The entire profitability of the market is deeply damaged by an intense rivalry among the members of the market, because this led to a decrease in prices. FCA operates in a very competitive industry, and the rivalry FCA’s managers can not underestimate.

How FCA can handle Intense Rivalry among the Existing Competitors in the Automotive industry : This threat can be avoided if FCA put effort in creating a sustainable differentiation and by trying to collaborate with other members of the market in Rotherham to enlarge the market size. Innovation FCA’s history is characterised by more than a century of innovation. Many of the Company’s engineering breakthroughs are now standard equipment, industry-wide, around the world. More than 20,000 employees at 87 research and development centers around the globe are involved in the Group’s pursuit of innovation. FCA has a significant intellectual property portfolio, with more than 11,800 patents and patent applications, and nearly 1,900 protected product designs as of 2017.

Fiat business model FCA embodies the concept of a circular economy into its business strategy, having as one of the main objective the reduction of waste in every step of the value chain and the reusal of materials. Keeping resources in use for as long as possible reduces material costs and promotes efficiency, while also reducing the impact on the environment through the lifecycle of a product. It also encourages collaboration, as companies try to find others who match up in either providing or repurposing material waste. The will to move to a more sustainable future is one of the major objectives of the company.

Value chain Purchasing Purchasing leverages $80 billion globally in purchased parts and services. The contracts they negotiate involve complex commodities, close collaboration with supplier partners and colleagues, and the flexibility to adapt when needed.

Supply chain management Supply Chain Management is composed of seven interdependent departments with responsibility for the planning and logistics behind every component of FCA products, as well as the delivery of our products to our dealers and customers. This is an action-based career area within a high-energy environment with ongoing challenges and opportunities for growth....