SWOT Analysis of Ferrari gives emphasis on strength, weakness, opportunities and threats. Strength and weakness are the internal factors opportunities and threats are external factors.
SWOT Analysis is a validated framework that enables a brand such as Ferrari to evaluate its business performance against competitors and the industry.
Ferrari is a Luxury Sport Car manufacturer based in Italy. Ferrari was founded in the year 1939 in Italy.It has 4164 Employees. Ferrari manufactures concept cars, hybrid cars, super cars and bio-fuel cars.
Strengths in the SWOT Analysis of Ferrari – Ferrari SWOT Analysis
- The incredibly strong picture of the brand.
- Products that are a fine blend of beauty & aesthetics coupled with unforgettable efficiency.
- The brand has an aura of mystique linked to itself.
- Ferrari is considered to be a status symbol.
- Takes on new challenges with a head on mindset on a permanent basis.
- Behind every product, creativity & technology are key drivers.
- Automation: has enabled more effective resource utilization and cost reduction from various stages of production. It also enables its goods to be consistent in quality, and offers the flexibility to scale up and scale down production as per market demand.
- Trained labor force: Ferrari has invested heavily in its workforce training, which has resulted in it hiring a significant number of professional and motivated workers. Has a diverse workforce, with people of many ethnic , racial, cultural and educational backgrounds who help the organization bring in various ideas and methodologies to do things. Has trained and certified competent team workers.
- Entering new markets: Creative teams from Ferrari have helped it to come up with new products and reach new markets. In the past it was successful, in most of the initiatives it took in new markets.
- Social Media: Ferrari has a strong social media presence with over millions of followers on the three most prominent social networking platforms : Facebook , Twitter and Instagram. It has a high degree of customer engagement with low customer response time on those channels.
- Website: Ferrari has a well-functioning and engaging website that attracts a huge amount of traffic and sales on the internet.
- Product Portfolio: Ferrari has a broad selection of products where it sells products in a wide variety of categories. It has a range of exclusive product deals which competitors don’t have.
- Ferrari has a well-established IT system which ensures its internal and external operations are successful.
- Ferrari is a company that has been on the market for years and that people recognize. That makes it highly aware of its brand.
Weaknesses in the SWOT Analysis of Ferrari – Ferrari SWOT Analysis
- The business model of Ferrari, focused on low volumes, excludes the option of using such technical solutions.
- While much more demand is present in the market, the same business model often restricts their sales volumes.
- Because of their “waiting list” model, the competition loses out on clients.
- Fuel quality & pollution, which are rising in importance every day thanks to the spread of environmental issues, are a major challenge lying in wait.
- Opportunities in Ferrari’s SWOT analysis:
- Owing to rising economies and developing nations, development in the global demand for high-performance super-cars.
- Brand expansion by entering new & significant automotive markets such as India, where competitors such as Porsche have already developed their base.
- Enlargement of the consumer base (increasing the attractiveness of their products to a wider range of buyers) by introducing comfort, room, luggage space, more user-friendly engines, and so on, while retaining traditional Ferrari features-performance, style, exclusivity. This factor has been exploited for a while by Ferrari and in the past 15 years it has been a key contributor to their success.
- Technology advancement (for example, interconnecting electronics with mechanical systems) has opened up new avenues for their goods to explore.
Threats in the SWOT Analysis of Ferrari – Ferrari SWOT Analysis
- Owing to the performance-oriented design of the engines produced by Ferrari, automobile policies are pushed by countries & continents around the world that are strictly followed. Different countries have different CO2 emission norms which directly or indirectly a major threat to the company.
- Company is facing extensive competition from other popular brands such as Porsche & Lamborghini super cars.
- A rival brand such as Porsche does not pursue the same low volumes, high on Ferrari’s exclusive model and thus sells a lot more of its products and captures a big chunk of the market share.
- Once again, rivals such as Lamborghini & Porsche are extending their product range to high-performance SUVs in which Porsche has already been very popular with its “Cayenne” model, worldwide & in India in particular, which has led to its success in the Indian market.
- Government Policies are also a major threat to the company.
If you like This Article Please Like our Facebook Page PROJECTS4MBA
Cite This Work
Referencing Style to cite this article: