SWOT Analysis Of Ferrari analyzes, Ferrari S.p.A. designs and manufactures sports cars that are synonymous with speed and performance. Ferrari sports cars are among the most prestigious automobiles in the world, along with Porsche, Maserati, Alfa Romeo, Jaguar, and Lamborghini. The name Ferrari is still venerated on the international racing circuit, and many automotive experts regard the Ferrari GTO as one of the most exotic sports cars ever made. Only 35 Ferrari GTOs were built, and some of them have been sold as collectors’ items for more than $10 million. About 3,800 Ferraris are sold each year, at prices starting at $120,000 apiece. Ferrari S.p.A., which has been affiliated with Fiat S.p.A. since 1969, also owns the Maserati brand. About 20 percent of Ferraris and Maserati’s are sold in North America, with the second-largest market being Germany, at around 18 percent.
Did you know?
Ferrari also makes a pretty penny from selling and licensing a wide variety of merchandise. From toys, to clothing, to accessories, the Ferrari brand is so much more than just vehicles.
In 1938, Ferrari was appointed head of Alfa Corse. However, he left in 1939 to start up Auto Avio Costruzioni in the Scuderia’s old headquarters. His new company founded, Enzo Ferrari built a sports car, a spider-powered by a 1500 cc 8-cylinder engine. Ferrari is one the automotive world’s most evocative names. The Italian car maker is synonymous with motorsport – Formula One in particular – and it has also built some of the world’s finest roadgoing sports cars.
This can only be achieved through a firm with extensive knowledge, experience, and innovative strategies. To determine the strengths of the company potential, weaknesses, opportunities, and threats, it is necessary to conduct a SWOT analysis by Ferrari.
Ferrari At A Glance – Ferrari SWOT Analysis
Company: Ferrari S.p.A.
Founders: Enzo Ferrari
Year of establishment: 1947, Maranello, Italy
CEO: Benedetto Vigna | John Elkann
Headquarters: Maranello, Italy
Employees (Dec 2020): 4,556
Ticker Symbol: FRRI
Annual Revenue (Dec 2020): EURO€3.767 Billion
Profit net income (Dec 2020): EURO€787 Million
Products & Services: Automobiles | Commercial Vehicles | Financial Services | Automobile Repair
Company Website: www.ferrari.com
Top Ferrari Competitors
Competitors: BMW | Audi | Mercedes Benz | Porsche | Jaguar | Aston Martin | Bentley | Lamborghini | Ford | Honda | McLaren | Bugatti | Maserati
Ferrari SWOT Analysis – SWOT Analysis Of Ferrari
SWOT Analysis Of Ferrari analyzes the brand based on its strengths weak points, weaknesses, opportunities, and threats. With Ferrari SWOT Analysis it is clear that the advantages and disadvantages are internal factors, while threats and opportunities are external elements. Here we are going to talk about Ferrari SWOT Analysis. Below Is The Detailed SWOT Analysis Of Ferrari.
Ferrari Strengths – Ferrari SWOT Analysis
- Automation of processes ensured consistency in the quality of Ferrari products and allowed the company to expand and reduce its size based on the needs of the market.
- Highly skilled workforce thanks to successful learning and training programs. Ferrari is investing massive resources into the development and training of its employees, resulting in an employee pool that is not only skilled but also driven to do more.
- Very successful in the Go to Market methods with its product.
- Reliable suppliers It has a solid base of reliable suppliers of raw materials, allowing the company to get around any bottlenecks in the supply chain.
- Good Returns on Capital Spending Good Returns on Capital Expenditure Ferrari is fairly successful in developing new projects and has produced good returns on capital expenditures by creating fresh revenue streams.
- Experienced track record of successfully merging complementary firms via mergers and acquisitions. It has successfully integrated a number of tech companies over the last few years to simplify its operations and establish a solid supply chain.
- A track record of success in the development of innovative products and services.
- A high level of satisfaction with customers The company through its dedicated department for managing customer relations has been able to reach an excellent level of satisfaction with its current customers as well as an excellent brand image among prospective customers.
Ferrari Weaknesses – Ferrari SWOT Analysis
- The way in which the products were promoted left many things to be left to be desired. Although the product may be successful in terms of sales, its positioning and distinctive selling proposition are not clear, leading to attacks on this market from competitors.
- The structure of the organization is suitable for the current business model, thereby limiting expansion into other product categories.
- The ratio of profitability and Net Contribution percentage of Ferrari are lower than the industry average.
- A high rate of attrition in the employees – in comparison with other companies in the business Ferrari has more attrition rates and must spend much more than its rivals on the training and developing its employees.
- The financial planning process isn’t done effectively and efficiently. The current ratio of asset to liquidity asset ratios indicate the business can make use of the cash more effectively than it is currently.
- It is time to invest more in new technologies. Due to the magnitude of the expansion and the various geographies that which the company is planning for expansion into Ferrari must invest more into technology in order to streamline processes across all departments. At present, the investment in technology isn’t at in line with the plans of the company.
- It is not very successful in merging firms with a different work culture. In the past, while Ferrari has been successful in the integration of small businesses, it does have its fair share of failing to join firms with different working way of life.
Ferrari Opportunities – Ferrari SWOT Analysis
- The tax reforms could dramatically alter the way of conducting business. It could also provide new opportunities for established companies like Ferrari to improve its profit margins.
- A new environmental policy – The opportunities will result in an even play field that is open to all players in the field. This is a fantastic chance for Ferrari to highlight its advantages in the field of new technology and expand shares in the emerging product segment.
- The development in the market could result in a diminution of the advantage of competitors and allow Ferrari to boost its market share compared to other rivals.
- Government green drive also offers an opportunity to purchase Ferrari products from the state government as well as Federal government agencies.
- The latest trends in consumer’s behavior could open up a an entirely new market to the Ferrari . This is a fantastic opportunity for the company to create new revenue streams , and expand into different product lines, too.
- A rise in economic activity and an growth in consumer spending after years of economic recession and slow growth rates within the industry, presents an ideal opportunity for Ferrari to gain new customers and expand the market shares of its competitors.
- Organization’s core competencies could be successful in other product areas. An example of this could be the case of GE health research assisted it in the development of better Oil drilling equipment.
- Lowering the cost of transportation as a result of lower shipping costs could lower the price of Ferrari’s goods, offering a chance to the business – either to improve its profit margins or to pass the savings to customers in order to increase market share.
Ferrari Threats – Ferrari SWOT Analysis
- Stable profit has added more companies in the industry over the these two years. This has put pressure not just on profit but also overall sales.
- Insufficient skilled labor force in certain markets around the world is the threat to the an increase in profits that is steady for Ferrari in these markets.
- The demand for the high-profitable products is seasonal and any unpredictability during peak seasons could affect the financial performance of the company in the short to medium-term.
- A shift in consumer behavior due to the online channels could pose a threat to the physical infrastructure-driven Supply Chain model.
- Imitation of counterfeits and substandard product poses a risk to Ferrari’s brand, especially in emerging markets and markets with low income.
- A rising price for raw materials can be an issue for Ferrari profit.
- The laws on liability in different countries are different , and Ferrari could be subject to a variety of liability claims due to changes in the policies of those markets.
- Pay increases, especially those like $15 per hour and rising prices in China could put severe financial pressure on Ferrari.
Ferrari SWOT Analysis Overview Template
This is the SWOT report that Ferrari has done. Please let us know if you have additional suggestions to add.
Let us know What do you think? Did you find the article interesting?
Write about your experiences and thoughts in the comments below.