Historic and environmental position fiat
ABSTRACT
This report will help us understand the historic and environmental position Fiat finds itself. Different tools will be used to analyse Fiat; Pestle analysis, SWOT analysis and Porters five forces analysis. Based on these analysis we will propose strategic choices available to Fiat with the use of the Ansoff's matrix in other for the car manufacturer to have competitive advantage over its competitors. Finally we will draw our conclusions and make recommendations based on our findings.
INTRODUCTION
The history of auto manufacturers will not be complete without Fiat, one of the pioneers in the automobile industry since 1899. Many of its models were milestones in the history of cars. For decades the company was the backbone of the Italian economy. Unfortunately, Fiat's reputation has dwindled over the years which has unavoidably resulted in poor sales, tremendous losses and crippling debts running into (Euro) billions.
Fiat adopted diversification strategy; it branched into different businesses ranging from pharmaceuticals, aviation, insurance, football club, newspaper and farm equipments which resulted in low investment in its core business.
Fiat and General Motors formed an alliance with GM having a 20% stake in Fiat for 1.75 (Euro) billion due to continued losses made by Fiat GM put an end to their contract with 1.35 (Euro billion). (Case study)
Sergio Marchionne, Fiat CEO aims to transform Fiat into one of the world's top performing mass - auto manufacturers by the year 2010. (Business Week online)
ANALYSIS OF FIAT
PESTLE Analysis of Fiat
This analysis is used to analyse the external key drivers for change that are going to influence Fiats cooperate strategy. p4
Political Factors
Government support was withdrawn as the Italian government was not allowed to inject money into the Fiat due to European Union competition laws. Thus, the removal of Italian...
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