Ferrari SWOT Analysis What is SWOT analysis? SWOT stands for strengths, weaknesses, opportunities, and threats. SWOT analysis involves identifying your business’s strengths and weaknesses, and examining the opportunities and threats which may affect you. SWOT analysis can be used to analyse your organisation and its environment. Carrying out a SWOT analysis can help you identify changes that can be made to improve your business. Strengths
Strengths are those features of the business which allow you to operate more effectively than your competitors. Ferrari is by far the worlds most famous racing car producer that surprised the motor industry in terms of speed, performance and reliability. Ferrari stands out as the leader of Italian auto manufacturers industry, and till today represents the finest of Italian craft in the mechanics of auto propulsion. Ferrari is claimed to be a purpose-built race car which features exceptional performance. Weaknesses
Weaknesses are areas capable of improvement. It helps a Company identify if its lacking skills or new products? Whether it has a higher cost base or lower productivity than your competitors? Or if there are any unpleasant truths about the business that need to be faced. Ferrari has emerged superbly as a very strong Brand with least flaws. The only factor which probably acts to its disadvantage is that, the strategy of catering to the very elite class of millionaires has no doubt added to the brand value of the product but also restricts the sales.
Having already notched out a mark for itself, probably the time is right to introduce a more economically viable category, to fulfill the millions of dreams of owning a Ferrari. The other drawback is that since its such a high-end brand, and no two Ferrari’s are known to be alike, it makes it clients want and wait for their dream car. It takes a minimum of 6 months advance booking before the client can eventually be the proud owner of this priced possession.
Opportunities Opportunities refers to any interesting trends which one can take advantage of Examples of opportunities include: Changes in technology and markets, eg the Internet Changes in government policy or regulations / legislation Local and global events Potential new uses of products and / or services Use of marketing or promotional techniques to boost the business Social factors, eg population fluctuation, lifestyle changes, etc.
With Ferrari having already established a very strong hold over the Asia Pacific region and Shanghai as its recent headquarters, its time for it to extend into a highly progressive and lucrative market- India. With a large number of Indians making it to the Forbes list of the richest, India is bound to be an easy market with millionaires who are capable of affording a Ferrari. Furthermore, ever since Ferrari has been introduced in China, its sales have seen a sudden boost with Shanghai becoming the new headquarters of Asia Pacific.
Once Ferrari enters the Indian market it is bound to capture a wider and more lucrative audience. Banking on the brand name that Ferrari has notched for itself, I would really like to see Ferrari also reaching out to the high and upper middle masses instead of just the very high classes. Indian market is very much in line with the Chinese market with a lot more scope for flexibility, hence all the key strategies adopted by the company in China is bound to reveal an even more astounding result. Alike China India is also a very densely populated country with a lot of western influence.
The past 5 years census has also seen a remarkable lift in the living standards and lifestyle of people. A majority of the population no longer aspires for just comfort but is ready to go that extra mile to be in the lap of luxury. And what speaks of luxury better than Ferrari. Furthermore, Formula 1 is expected to reach Indiaby 2011 hence, it would serve as major promotional strategy for the Company Threats Threats can be external or internal, and are anything which can adversely affect your business.
External threats could be inflation, new legislation, or a new competitor in your market. Internal threats could include a skill or staff shortage within your organisation. Indian market seems to be risk free market for Ferrari with only increased opportunities. The only possible difficulty that Ferrari might counter would be in terms of modifying their designs to cope up with the infrastructure of the country, I terms of roads. Ferrari is known for its low body which might hinder movement in case of speed breakers and puddles during rainy season.
Other factor which should be taken into consideration would be the government policies and legislation regarding the high import duties. This regulation on the part of the government will inflate the service cost and prices of spare parts. Personal swot analysis : Strength : Passion is the key virtue . Looks at things in a different light . Experimentative in nature . Believes in hard work. Quick at learning new things Makes friends easily Loves to interact with different people Weakness :