Fiat Chrysler Case Study

776 Words2 Pages

Among the customers who prefer Fiat Chrysler products includes middle-aged working women and young people, such as students who prefer smaller cars that are fuel efficient and cheaper to the pocket. Efficiency entices These groups of consumers. However, educational attainment does not play a significant part in the buying choices of Fiat consumers.
Fiat specializes in the niche of cars that are small, efficient, and low-cost in a country where people embrace fuel guzzlers. However, some consumers perceive the brand to have been tainted by the associations with other companies, such as Daimler. Fiat Chrysler can expect to venture into the production of intelligent cars and thus should increase its spending on R&D to better serve its customers. …show more content…

The economic environment is characterized by unemployment rates, gross domestic product of consumer countries, inflation rates, levels of disposable income, and interest rates. The societal factors include pollution levels and consumer demographics, for instance, age and population size, which will affect how consumers buy Fiat Chrysler products. The changes in the rate of new product development, shared technology and innovations through alliances as well as changes in automation affect the technological landscape of Fiat Chrysler’s business. The legal factors are antitrust laws, employment laws, and discrimination laws which affect how the company conducts its …show more content…

Ford has increased R&D as well as advanced powertrain production to venture into the small car market that is dominated by Fiat. The company has increased the production of fuel-efficient transmissions and trucks thus presenting a challenge and direct competition to Fiat Chrysler. Ford has a grip on the American market, which Fiat Chrysler has not fully penetrated due to branding problems.
Peugeot, on the other hand, focuses on the same fuel efficient and hybrid niche for passenger cars and light commercial vehicles as Fiat Chrysler and has cemented its customer base in the European market, a feat that Fiat Chrysler is yet to attain. The European market share for Peugeot stands at 17.4 percent compared to Fiat’s 6.5 percent.
Recommendations
Fiat Chrysler should invest heavily in research and development to stop lagging behind competitors in the market. The areas the company should concentrate on include; autonomous driving, hybrid technology, fuel economy, and an increase in profit margin. The company should also boost its global operations to rectify the shrinking sales volumes in South America, and increase presence in the Asian-Pacific region, where competitors have solidified their businesses. It should also formulate innovative strategies for the next five years to improve the quality of its products and

Open Document