Fiat Case Study Fiat, Once Thesis

In the case of Toyota they have focused on supply chain integration, collaboration and collaborative forecasting and replenishment (CPFR) workflows. What emerges from this SWOT analysis from a competitive analysis standpoint is that while Fiat was concentrating on product-driven strategies for differentiation, its competitors had embraced and were well on their way to making processes their core competitive advantage, especially those augmenting personal productivity (Porter, 2008).

Fiat's opportunities however are significant. There is growing truck market demand, increasing demand for manufacturing equipment in BRIC nations and growing need fro construction vehicles in China and India. As Tata Motors has worked to dominate the passenger car market in India, there is no company focused on construction vehicle development. For Fiat, this presents a unique and highly differentiated opportunity.

The threats Fiat faces are comparable to many other global auto manufacturers, including the continued contraction of credit and therefore the entire auto market, nationalization of entire segments of the auto industry (Simon, 2009) and the potential for massive merger and acquisition activity. To alleviate the risks of these threats, Fiat will need to concentrate on creating more of a centralized strategy on autos and exit any business that does not contribute to their success in that market.

Recommendations and Conclusion

Fiat has exceptional brand loyalty and could feasibly choose to go up-market and become a luxury brand. There are the ultra-luxury brands renowned in Italy for their combining of engineering and design including Lamborghini, Ferrari and others. Fiat could potentially go upscale with a Lexus-competitive brand. This alternative however requires the company to excel in two areas it has struggled with. The first is the ability to consistently produce quality autos (Ktyzkowski, 2009) and the second is to create an effective global dealer channel.Because of these two factors, Fiat would be wise to not pursue a high end strategy.

The option that makes the most sense however given the company's expertise in small vehicle production and global deployments is concentrating on the BRIC nations and expanding their reach into those markets. Given the fact that Fiat has traditionally excelled in the form, fit and function aspects of smaller car design, the strategy of going after the BIRC nations, specifically China, would be an effective one. The direction of the Chinese market to focus more on price and utilitarian designs fits with what Fiat does best as a manufacturer (Sargent, Matthews, 2009). Looking to the construction vehicle marketplace in China and all BRIC nations would be the best possible alterative today.

References

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Giuseppe Calabrese. 2000. Fiat Auto hands the wheel to its employees. Human Resource Management International Digest 8, no. 1, (January 1): 13-15.

Mauro Caputo and Francesco Zirpoli. 2001. A new organization for supplier involvement in vehicle design: The Italian automotive industry case. International Journal of Automotive Technology and Management 1, no. 2,3, (January 1): 301-320.

Jeffrey H. Dyer, and Kentaro Nobeoka. 2000. Creating and managing a high-performance knowledge-sharing network: The Toyota case. Strategic Management Journal: Special Issue: Strategic Networks 21, no. 3, (March 1): 345-367.

Kasra Ferdows. 2006. Transfer of Changing Production Know-How. Production and Operations Management 15, no. 1, (April 1): 1-9.

Peter Haldis. 2009. White House Creates Auto Task Force; Chrysler Asks for $2 Billion More in Bailout Loans. Global Refining & Fuels Report, February 25,

Ktyzkowski, B. 2009......