External And Internal Analysis Of Pirelli

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Pirelli Overview Pirelli was founded in 1872 in Italy for the production of rubber articles and is now a multinational company. It is the fifth largest tyre manufacturer in the world and the exclusive supplier for Formula 1. It owns 20 tyre factories and operates in over 160 countries. Pirelli diversified into the real estate and broadband segment, but sold them last year to focus on tyres . In their mission statement they emphasize their social responsibility with a goal to develop “high quality and high technology products and services with low environmental impact”. Facories – 5 italy, 2 UK, 2 Germany, 2 Romania, 1 Argentina, 1 china, 1 egypt, 1 us, 1 spain, 1 venezuela. PESTEL Political – headquarter Italy, unstable Egypt, international politics and instability, Significant investment in fast growing economies presents risk in the form of unstable regimes and a dynamic political environment. Economic – high growth china, south America. 9% average growth for tyre sector 2000-2009. Predicted 7% annual growth for next five years, increased costs in raw materials. In particular natural rubber prices have increased – this is very important to Pirelli because they use a lot of natural rubber in comparison to other tyre companies. Social – large increase in car purchases with rising population, more expensive car purchases in developing world. Significant growth expected in the consumer and industrial segment. In he next five years annual growth is forecast to be 7% Technological –fast advancements for premium, Formula 1, eco-friendly Environmental – more pressure to be socially responsible, better manufacturing techniques, raw materials not derived from oil. Legal – laws for replacing tyres, winter tyres, environmental laws for rubber trees, new EU law for tyres displaying a green rating (class ratings) – fuel efficiency and wet grip. Five Forces
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