Who are the current customers/users?
The company targets upper and upper-middle class clients as their target market. This group of clients has no problem spending money on a car as long as they like it and feel that the car is what they need. Most clients who buy Fiat Chrysler cars do not have a tight budget and spending is not a problem for them. Customer satisfaction and loyalty is fairly good and justified (Ascential, 2016). In one instance, the company was able to recall some cars that were faulty yet the clients had not reported any faults. The clients buy cars that they feel suit their needs, class, and status.
What changes can the company/brand expect in the future? How can the company/brand better serve its customers?
The company is expected to stop the production of diesel cars and produce more electric cars. In the future, the company will aim to sell more cars than in the previous years by ensuring that the cars being produced are of high quality and give the clients value for their money (Edhardt, 2018). Making better quality cars will help the company serve its clients better.
1. Mergers will increase the production of cars significantly. Market expansion strategy.
2. Access to resources will ensure that the company can produce electric cars to match the demands of the market and beat competition from companies like Tesla Inc. Matching market trends.
3. The slow rise in the stock market will give the company a strong base for growth. It is an opportunity to make mistakes that are not too costly.
1. The mergers may weaken the brand in terms of customer loyalty. New policies and technology may replace original ideas.
2. The company development plan was initiated without the identification of the right successor. It may lead to confusion when changes in leadership take place at the company.
3. The company may fail to reclaim its position in the stock market. The management has to iron out the operations of the company.
This Section Discusses what the brand is currently. Identify the strengths and weaknesses of the company/brand as it exists today, providing at least 3 strengths and 3 weaknesses. What does the company/brand do well and not so well at this very moment?
List 3 Strengths
List 3 Weaknesses
1. The company is losing its market share in significant markets. Declining sales.
2. The recall of vehicles indicates a problem in the production sector. Less safety measures.
3. The company has had problems with emission limitations. Environmental challenges.
How can the company/brand improve its weaknesses and maintain or grow its strengths? Suggest how the company/brand can improve upon the things it does well and not so well.
The company can improve its strengths by capitalizing on the strong brand name and the market distribution that has a global reach. The company has to improve the ability of people to develop cars that serve them well. The company also has to create an avenue whereby they can receive criticism and work on fixing the concerns raised adequately.
Define the current business environment. Include information about political, legal, economic technological and societal factors that may influence sales.
Changes in spending habits could be considered as well. Other factors such as the use of public transportation and shopping online may also be relevant. Whether or not the product is high-tech or state-of-the-art can be also be included in describing the context. For example, are there other companies producing new versions of the product? Is the market changing quickly? How is technology affecting this product or service? Are there any new laws that may affect the brand?
Political Environment: There is no clear succession plan for the leadership of the company. It has caused unrest among the stakeholders and clients.
Legal: Legally, the company is liable for any breaches to ethical business operations for the protection of their clients.
Economic: The Company must maneuver the challenges that will ensue after the sale of the company to the Chinese buyers. The sale of foreign-made vehicles in the United States market is likely to face tough times under the current administration.
Technological: The Company is doing well in terms of innovation of new cars and incorporating technology in new products.
Societal/Sociocultural: The Company offers employment and after cutting down the workforce to a manageable size, subsequent growth will help the company stabilize and employ more people within the locality where the company is located.
Define the business partnerships. Does the company/brand have any current partnerships? What other company/brand may be a good partner for them?
Current Partnerships and the discussion on them: The Company is a partnership between an Italian and an American company.
Proposed Partnerships and the discussion them: The company may be open to partnerships in the future with companies like General Motors or the Jaguar Land Rover.
Who are the main competitors? Label and discuss the top three competitors and why you consider them a competitor.
Competitor 1: BMW is a major competitor for the company. They produce cars for the same market that Fiat Chrysler targets.
Competitor 2: General Motors has a large market share that rivals Fiat Chrysler.
Competitor 3: The Ford Motor company is enough competition in the American market and rivals the Fiat Chrysler market share and the client base as well.
Based upon the analysis you just completed in this worksheet, what are three (3) key recommendations that you could pass along to Management regarding the future direction of the company you selected? Discuss why you have created these strategies and why you think they should be undertaken and work for the business.
1. Recommendation #1 and the Defense of the Recommendation: The Company can expand the scope on the target market significantly. Including middle and basic income earners will enhance the client base of the company.
2. Recommendation #2 and the Defense of the Recommendation: The Company can adapt to innovation in technology at faster rates to keep up with the competition. It will also ensure that their clients will have options to pick from when the electronic cars are in fashion.
3. Recommendation #3 and the Defense of the Recommendation: The company can also evaluate the quality of partnerships that will grow it significantly before signing any deals. This will prevent the company from being dragged down on another company’s losing streak.
Ascential. (2016, October 4). Fiat Chrysler targets lifestyle moment. Retrieved from Warc: https://www.warc.com/newsandopinion/news/fiat_chrysler_targets_lifestyle_moment/37514Edhardt, T. (2018, June 1). Here’s what Fiat Chrysler’s Five-Year Road Map Looks Like. Retrieved from Bloomberg: https://www.bloomberg.com/news/articles/2018-06-01/what-to-expect-from-marchionne-s-farewell-show-at-fiat-chrysler
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