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...
In addition, Fiat today is struggling with the made-to-customer order performance levels, with 90% of cars delivered in six weeks and 100% of cars delivered in eight weeks. While having slightly better performance with made-to-deliver manufacturing workflows, Fiat is at a significant competitive disadvantage relative to its European and global competitors. The made-to-customer and made-to-dealer processes need significant revamping if any new logistics system is to be successful. Third, the
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