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    Fiat Swot Analysis

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    Vlè Ka
    Chrysler has strengths in its reputation for powerful Hemi engines, dominance in the minivan market, and increased focus on customer service. However, it faces weaknesses like a small declining overall market share, past management problems, and quality issues. Opportunities exist through Chrysler's partnership with Fiat which could help entry into new markets, and increasing demand for green vehicles. A threat is disappointing dealers due to issues under previous ownership.

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    Fiat Swot Analysis

    Uploaded by

    Vlè Ka
    218 views2 pages
    Chrysler has strengths in its reputation for powerful Hemi engines, dominance in the minivan market, and increased focus on customer service. However, it faces weaknesses like a small declining overall market share, past management problems, and quality issues. Opportunities exist through Chrysler's partnership with Fiat which could help entry into new markets, and increasing demand for green vehicles. A threat is disappointing dealers due to issues under previous ownership.

    Original Description:

    Marketing lesson about FIAT case

    Original Title

    FIAT SWOT ANALYSIS

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    Chrysler has strengths in its reputation for powerful Hemi engines, dominance in the minivan market, and increased focus on customer service. However, it faces weaknesses like a small declining overall market share, past management problems, and quality issues. Opportunities exist through Chrysler's partnership with Fiat which could help entry into new markets, and increasing demand for green vehicles. A threat is disappointing dealers due to issues under previous ownership.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    218 views2 pages

    Fiat Swot Analysis

    Uploaded by

    Vlè Ka
    Chrysler has strengths in its reputation for powerful Hemi engines, dominance in the minivan market, and increased focus on customer service. However, it faces weaknesses like a small declining overall market share, past management problems, and quality issues. Opportunities exist through Chrysler's partnership with Fiat which could help entry into new markets, and increasing demand for green vehicles. A threat is disappointing dealers due to issues under previous ownership.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    FIAT SWOT ANALYSIS

    Strengths
    Reputation for V-8 Hemi engine

    Chrysler has been known as the lead of horsepower race since 1951 when the company unveiled its
    V-8 Firepower engine, also called Hemi engine. Hemi has been recognized as sign of powerful
    machine for over 50 years. For this reason, Hemi was also Chrysler’s profit machine. Though
    Chrysler announced to limit the use of Hemi for its new products recently, the reputation that Hemi
    created for Chrysler will be supportive to the company’s auto engine initiatives.

    Domination of minivan market

    Chrysler has been the dominant of minivan market for over 25 years. Although the auto market has
    shrunk recently and many players have tried to expand their market share, Chrysler and Dodge still
    hold over 40% share of U.S. minivan market. This position would bring the company advantages
    over the competitors if the Chrysler gives more focus on this market.

    Focus on customer

    Chrysler is the first auto company having Chief Customer Officer. Even though customer care was
    not a strong point of Chrysler before, the company has give more focus on customer care by appoint
    Douglas Betts to the Chief Customer Officer. This move is a significant improvement in customer
    services and able to create great competitive advantage.

    Weaknesses
    Small and declining market share

    Despite the dominant position in minivan market, Chrysler’s overall market share is still small and
    declining. In 2009, the company’s market share was only 9.2% (The Wall Street Journal, 2010),
    dropped from 11% of the previous year. Though the company gained a bit improvement in market
    share by September 2010 (9.5%, The Wall Street Journal, 2010), this is still too small in comparison
    with other automakers.

    Management problems

    It is said that the merger with Daimler in 1998 had made Chrysler “a German-inspired mess” before
    Cerberus Capital Management acquired it in 2007. Additionally, analysts notice that the new owner
    does not have experience in auto industry and “doesn’t want to be in the auto business; it is in the
    money business”. The acquisition by Cerberus is thought to be “the beginning of the end of
    Chrysler as a recognizable automaking entity altogether”.

    Quality problems

    Chrysler’s vehicles usually present in the list of worst vehicles ranked by Consumer Reports and
    J.D. Power. This will definitely have negative affects on the customer’s buying decision.

    Opportunities
    Partnership with Fiat
    The strategic partnership with Fiat would create opportunities for Chrysler. Though minivan and
    SUV are Chrysler’s strong points, Chrysler needs to have smaller car in order to penetrate to South
    America or Asia market. Whereas, Fiat is well know for its smaller cars. Thus, the partnership with
    Fiat would be helpful for Chrysler to produce small car for new markets.

    Increasing demand for green cars

    The green car market is on the rise and forecast to top 3 million by 2015, of which U.S. market will
    account for 55%. As manufacturing green cars is one of the Chrysler’s focuses, this will be a great
    opportunity for the company to improve its position.

    Threats
    Disappointed dealers

    Under the control of Daimler, the dealer consolidation initiative “had drained their passion for
    selling cars” because they had to “take more products than they could possibly sell”. The new
    owner has not resolved the problem and this would be a big obstacle for the company’s business.

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