Fiat Analysis

11148 Words45 Pages
The FIAT Case: a Therapeutical Crisis Why did we choose to analyze Fiat? Our interest and curiosity arose when we thought about the agreement that Fiat signed with GM…at the end, this one preferred to pay a huge penalty rather than do business with FIAT. Why was this possible? What were the reasons that brought GM to such a decision? These were the first questions we had and with this work we have tried to give us, through the support of specific tools, the answers we were searching for. Fiat Auto was one of the founders of the European motor industry. With this work, we want to understand the reasons why the company has run into a huge crisis. This situation has deeply damaged Fiat reputation in the period 2000-2004. This had logically bad consequences on sales and profit. We propose an introduction of FIAT to understand the historical and economic evolution of the company. Then, it is fundamental to understand the characteristics of the automotive industry that plays a huge role in the world economy. In this section, we will analyze the main actors, the increasingly importance of suppliers in the industry value chain, the great opportunities that stems from emerging countries, the importance of investments in corporate strategies and the environmental commitment. The tools we have used are: the PEST analysis, the Porter’s Five Forces analysis, the FIAT Value Chain and the SWOT analysis. On the base of the SWOT analysis, we propose a ray of strategies in order to overcome the crisis of 2000-2004. These proposals are compared with the 2005 strategy that has been really implemented by the company. Finally, we underline what, according to our analysis, is in line with our conclusions and what diverges. Lugano - 02.07.2006 – USI - Corporate Strategy SI 2005-2006 – Prof. Erik R. Larsen by Vincenzo Cammarata, Veronika Kurucz, Valentina Maj,

More about Fiat Analysis

Open Document