Redbull 500 Example

 Fiat 500 Case Study Article

1 . Introduction

When Fiat chosen to re-launch the old and famous Fiat five-hundred Cinquecento in July 3 years ago, they were confronted with two key problems;

a) Aside from ensuring the success of the car in its home country, in which the reserve of goodwill intended for Fiat is usually strong, is whether non-Italians will certainly choose the fresh 500 more than rival models made by Renault, Volkswagen and BMW. b) Will the customer perception always be that the car is exceptional enough to command an industry premium within the other entry-level cars?

FEDEX Overview

The business is a popular and founded brand in the motoring sector. Founded in 1899 with a group of traders led simply by Gianni Agnelli, the company founded itself as being a market innovator, especially in Italia. Fiat also incorporated different famous brands e. g. Ferrari, Lancia, Alfa Romeo and Maseratti into its steady, which further enhanced the manufacturer appeal.

The corporation diversified in other non-automobile fields, electronic. g. banking, telecoms, pharmaceutical drugs and strength. This led to the primary business (automobiles) to be miserable of the important capital to increase the product range. This ruined the business reputation intended for quality and reliability inside the markets outside of Italy. Fedex and Lancia withdrew from your US marketplace in 1984 and Australia in 1989. Alfa Romeo also left the US industry in 1995. This opened the way for electric motor manufacturers in the East (Japan and Asia) to get into the spaces left by simply Fiat during these markets especially in the small car segment.

Even in its individual country, Fedex lost business. In 1990 market share decreased from 52% to 28%. By 2002 a financial institution bailout of $2. 8 billion was needed to preserve the group from bankruptcy. Fiat revenue decreased in a rapid price as displayed in Exhibit IV.

In 2005, a fresh CEO, Sergio Marchionne was appointed. He was the sixth CEO in five years. His key aim was to " correct the car organization " of the Fiat group. He implemented a variety of pursuits to remedy the group's budget. The success of the re-launch of the Cinquecento was pivotal to operate a vehicle up income and share rates of the Group.

Rivals

The success of the retro types for MINI and VOLKS WAGEN Beetle turned out that there was a market; the biggest threat nevertheless was how you can differentiate by these successes that were seen as the biggest competitors. There was also the risk from the Western and other Cookware manufacturers who also saw the gap on the market when Fedex diversified into other undertakings thereby underfeeding yourself the core business the capital it essential in its product range.

The competition created new ways of cutting developing costs for an example floor-plan sharing and joint going. For Redbull to succeed, they would have to do well at the Italian language market first where their reputation was also at stake. The small car segment was rapidly growing and for that reason required application that would match the needs and desires of the customers.

2 . SWOT Analysis

Strengths

• Trustworthiness of Fiat in Italy – ‘heritage'

• Established iconic brand since 1899

• Fiat's traditional specialization – small car segment • Proven concept ( " peoples car” ) in Italy

• Online strategy – " The Fiat 500 desires you "

• Fresh CEO – Sergio Marchionne and fresh management framework • MINI designer on side – Frank Stephenson

• Environmental consciousness

Weaknesses

• Status (outside Italy) due to deficiency of quality and reliability inside their vehicles • Diversification in other undertakings depriving the core organization of capital • Mentality of the customers ‘Fix This Again Tony'

• Financial position

o New bail-out

o Huge loss

o Core business (cars) fading

• Battling even in the German market

Possibilities

• Costed better than the MINI and the VW Beetle

• Appearing markets outside the house Italy at the. g. Markets from the asian continent

• Utilization of European market segments where various other Fiat brands are making their particular mark • Production through joint...

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