COMPANY PROFILE

 Ferrari S.P.A. Is an Italian sports car manufacture based in

Maranello, Italy. It was founded by Enzo Ferrari in 1929.
 It concentrated on racing cars.
 The first Ferrari road car was Ferrari 125 s; 1947 & race car was Tipo

815.
 The companies loftiest effort was in the “supercar” market  The recent trend in the company is to make hybrid cars

SWOT ANALYSIS OF FERRARI

STRENGTHS
Extremely strong brand name

It is a combination of beauty and performance

Considered as a status symbol

Innovation and technology

WEAKNESS
Do not concentrate on mid-segments

Low fuel efficiency & high emissions

Long waiting list

Limited number of cars

OPPORTUNITIES
Rising demand for super cars

Expansion of brand into new markets

Development of technology

Enlargement of customer base

THREAT
Tough competition from Porsche, Lamborghini etc...

New automotive norms by many countries

Competitors have a better market share

EXTERNAL ENVIRONMENT
It consists of the following: Political
Economic Social Technological Ecological Demographic

POLITICAL
 The legislation rules imposed by many countries for luxury cars
 Pressure created by various voluntarily groups regarding governments

policies
 The internal rules of different organisations or companies  Free trade between different level between European countries

 The changing norms of various governments/parties
 Environmental issues such as co2 emissions etc..

ECONOMIC
 After effects of recession in Italy(headquarters)  Home economy trends is plummeted.

 High tax rate on imported cars in countries like U.S, Australia etc...
 Lack of market in certain developing & undeveloped countries  Overseas economies and trends

SOCIAL
 It is considered as a status symbol  Consumer attitude and opinion of media views.  Lifestyle trends of the people of U.K and U.S.A.  The brand value of the company

 Fashion and role models.

TECHNOLOGICAL
Competing technology development. Technology legislation. Innovation potential. Tie up with big technological firms.

Ferrari’s heart is its high performance oriented engine

ECOLOGICAL
 Natural calamities can often affect the business adversely, it

always causes heavy losses to the business and in some cases it also results in the closing down of business.
 Some of these natural calamities include earth quakes, tsunami’s

flood etc...
 The recent earthquake in Japan is an example of it.

DEMOGRAPHIC
 The products of company are mostly preferred by younger

generations.
 Majority of its users are males.  It is mostly used by the high income and business class people.

INTERNAL ENVIRONMENT
It includes the following:
Physical resources

Financial resources
Human resources Intangibles

PHYSICAL RESOURCES
 The main manufacturing unit is in Italy.
 It have authorised distribution channel in more than 52

countries.
 Its Revenue is around 1900 million Euros.  It has sold around 6573 outputs in 2010.

FINANCIAL RESOURCE
The assets of the company is worth 23 billion.
The companies main investment is in Italy. The profit of the company increases significantly year

by year.

FINANCIAL POSTITION OF FERRRARI
BALANCE SHEET INCOME STATEMENT

(WEB: WWW.GRANTMAKERS.ORG)

HUMAN RESOURCES
 Ferrari has nearly 3000 employees.

 A program called Creativity Club is provided for developing

employees talents.
 Their workforce consists of a strong dedicated employees

INTANGIBLES
The goodwill of the company The brand value of the company in the mind set of

people
The large market share of the company Its reputation in the automobile industry

COMPETITORS ANALYSIS
 Market share of Lamborghini is 23%(2010) where as of Ferrari it is

28%(2010).
 Market coverage of Ferrari is higher.  Its competitors such as Porsche, Lamborghini etc... Concentrate on

various levels.
 Its competitors produce larger number of cars in the market.
40%
20% 0% FERRARI Sales LAMBORGINI

STRATEGIES
Corporate Strategy

Business Unit Strategy

Functional Strategy

CORPORATE STRATEGY
 To produce cars of superior quality.  Concentrate on cars for middle class people as well.  Increase the efficiency of cars in terms of fuel, CO2 emissions

etc...

BUSINESS UNIT STRATEGY
 Generate new markets for the cars produced.  Invest in places where competitors have not started their

business.
 Better and improved adverting methods.

FUNCTIONAL STRATEGY
 Construct new manufacturing units in many places.  Increase the number of units for its distribution across the

world.
 Outsource many of its items such as production units,

distribution etc..
 Increase its investment in hybrid cars and other technologies.

REFERENCES
web: www.grantmakers.org www.marketing91.com/swot-ferrari/ http://rapidok.com/list/ferrari%20annual%20report%202010 www.ferrari.com web: www.grantmakers.org www.marketing91.com/swot-ferrari/ http://rapidok.com/list/ferrari%2oannual%2oreport%2o2o10

PARLOFF, ROGER. Fortune International (Europe), 9/4/2006,

Vol. 154 Issue 4, p48-52, 4p Baglieri, Enzo; Secchi, Raffaele; Croom, Simon. Industrial Marketing Management, Oct2007, Vol. 36 Issue 7, p10101017, 8p; Simoneaux, Sarah L.; Stroud, Chris L.. Journal of Pension Benefits: Issues in Administration, Spring2011, Vol. 18 Issue 3, p75-78, 4p

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