Ferrari S.P.A. is a multinational Italian sports car manufacturer based in Maranello, Italy. Founded by Enzo Ferrari in 1929, as Scuderia Ferrari, the company sponsored drivers and manufactured race cars before moving into production of street-legal vehicles as Ferrari S.P.A. in 1947. Throughout its history, the company has been noted for its continued participation in racing, especially in Formula One, where it has had great success. Ferrari road cars are generally seen as a symbol of luxury and wealth.
Ferrari is also known as a dreamproduct.It is a world famous and luxuriousproduct.Even films like Ferrari Ki sawaariand CARS is made by keeping thiscar in mind.
Celebrities like sachinTendulkar , Sanjay Dutt and amany other famouspersonalities from differentfields own this car.
INDUSTRY SOCIETA PER AZIONI TYPE AUTOMOTIVE FOUNDED 1947(historical 1929) FOUNDER(S) ENZO FERRARI HEADQUATERS MARALLENO ITALY KEY PEOPLE LUSA DI MONTEZEMOLO(chairman ) PIERO FERRARI(vice chairman) AMEDIO FELISA(CEO) PRODUCTS SPORTS CAR PRODUCTION 7044 units(2011) REVENUE 2.2billion(2011) OWNER(S) FAIT SPA(90%) EMPLOYEES 2695(2011)
A town in northern Italy, near Bologna, Maranello has been home to Ferrari since the 1940s. At more than 250,000 sq metres, the factorys 45 buildings house more than 3,000 workers.
HISTORY Throughout its history, Ferrari has supplied racing cars to other entrants, aside from its own works Scuderia Ferrari team. In the 1950s and 60s, Ferrari supplied Formula One cars to a number of private entrants and other teams. One famous example was Tony Vandervells team, which raced the Thinwall Special modified Ferraris before building their own Vanwall cars. The North American Racing Teams entries in the final three rounds of the 1969 season were the last occasions on which a team other than Scuderia Ferrari entered a World Championship Grand Prix with a Ferrari car.
Ferrari supplied cars complete with V8 engines for the A1 Grand Prix series, from the 2008-09 season. The car was designed by Rory Byrne and is styled to resemble the 2004 Ferrari Formula one car. The 599 GTB Fiorina and F430 GT are used in GT racing series. The Ferrari Challenge is a one make racing series for the Ferrari F430. Ferraris latest supercar, the 2006 FXX is not road legal, and is therefore only used for track events.
Ferrari has an internally managed merchandising line that licenses many products bearing the Ferrari brand, including eyewear, pens, pencils, electronic goods, perfume, clothing, high-tech bicycles, watches, cell phones, and even laptop computers. Ferrari also runs a museum, the Galleria Ferrari in Maranello, which displays road and race cars and other items from the companys history.
California 458 Italia F12 Berlinetta Ferrari FFGrand tourer Grand tourer Sports car Grand tourerV8 engine 4WD V12 Mid engine V8 V12 engine shooting-Convertible brake
Three main competitors of Ferrari:Bayerische Motoren: (volkswagon cars) Werke AG Automobili Lamborghini HoldingS.p.A. Porsche Automobile Holding SE
In the past Ferraris main competitors were Lamborghini and Maserati but now that Maserati is owned by Ferrari its main competitors are Lamborghini and the Italian hypercar brand Pagani. Lamborghini has always been the big one. Ferrucio Lamborghini used to build tractors but after buying a Ferrari and criticizing it he decided to build a better sports car which became the Miura. Pagani on the other hand have delved into the world of incredibly expensive yet incredibly exclusive hand-made carbon fiber hypercars, with multiple iterations of a Mercedes-Benz AMG-developed V12.
The product is in and maturity stage in its plc. The plan calls for each model to live for eight years, with an updated version to arrive four years after a models introduction. It is planning four models in the range, that will allow Ferrari to debut an all-new or significantly updated core model every year.
As for hybrids, Ferraris got a few applications of its HY-KERS system in the pipeline, but it will take at least five years to bring them to market.
Business diversification: Ferrari has a diversified product portfolio. The company operates through different business divisions including: Ferrari group automobiles, Magneti Marelli, Ferrari and Ferrari Powertrain Technologies(FPT), and others. Ferrari groups automobile division designs, produces and sells vehicles under the Ferrari, AlfaRomeo, Lancia and Abarth brands. The Ferrarigroup automobiles division accounted to 44.9%of total revenues in FY2008.
Strategic acquisition Ferrari has focused on strategic acquisition to expand its business. FPT Powertrain Technologies fully acquired Tritec Motors from Chrysler and decided to give is a new name which is FPT Powertrain do Brasil - Industria e Comercio de Motores. The purchase includes the facilities, the manufacturing unit, the production lines and the license to produce the current range of products.
Innovative Products: Despite challenging market conditions in 2008, Ferrari added several products to its existing product range. Innovation continued with a focus on both product and methodology.
Lack of scale compared to peers: Ferrari lacks the scale to compete with large players in the markets in which it operates. Many of its competitors such as General Motors, Ford Motor are larger in size. Therefore, sluggish performance of major operating divisions will eventually affect Ferraris financial position and puts pressure on other profit making divisions of the company.
Poor performance of Ferrari in major markets: Ferraris sales witnessed poor performance in some of its key geographic segments. Italy, which is the largest geographic market for Ferrari, accounted for 24.1% of the total revenues in FY2008. Revenues from Italy reached E14,316 million ($21,063.7 million) in FY2008, a decline of 9.7% compared to 2007. The decrease in revenue contribution from Italy, the US, Germany, the UK, Spain, and Turkey and other countries has offset the increase in revenues witnessed by Brazil, France, Poland and other regions.Therefore,poor performance of Ferrari in major markets may eventually affect the groups financial performance.
Opportunities: Growing economy in India and China: Developing economies in Asia are spending heavily on luxury material. Therefore, growth in infrastructure and standard of living of the citizen of this highly developing nations will also increase the sale of Ferrari car in such location.
Forecasted global recession in 2009: The global economy is presently in a massive financial instability thereby causing an acute loss of confidence. According to the world economy outlook of the IMF, global economies decreased sharply in 2009 and in 2010.. Also, the GDP growth rate of Eurozone was forecasted to decline from 0.9% in 2008 to -4.2% in 2009.These economic factors initially affected consumer demand for less fuel efficient vehicles, particularly full-size pick-up trucks and sport utility vehicles. In addition, consumer demand for automobiles has decreased due to a decline in the availability of financing and a significant contraction in consumer spending based on the continued recession in the US, resulting in automobile sales at their lowest levels in 16 years. Therefore, further recession in global economy would harm Ferraris business by adversely affecting its revenues.
Market orientation mainly focuses on Understanding customers needs Competitors abilities and continuously collecting information about them. Sharing of information across various departments. Creating customer value using above mentioned information
Product oriented company Ferrari produces excellent, well designed, quality products which are great value for money. Customers are sure to want our products. Thats the kind of approach Ferrari demands out of it customers. Product orientation occurs where the focus is given to the product rather than to the needs and wants of a customer. In a company like Ferrari they need to concentrate on their products, because over the years Ferrari managed to satisfy its customers through its superiority in quality and performance by delivering speed, style, luxury in their products. Relationship marketing of Ferrari Ferrari has always managed to Build and keep good relationship with their customers, by providing value for the customers money. Ferraris focus is on the whole relationship between suppliers and customers. Ferraris aim is to provide the best possible attention, Customer services to their customers by providing quality and increased performance in their products and services, and therefore build customer loyalty. Societal marketing of Ferrari This concept is based on social responsibility or societys long term interests.
Ferrari has had a long standing relationship with Shell Oil. It is a technical partnership with Ferrari and Ducati to test as well as supply fuel and oils to the Formula One, Moto GP and World Superbike racing teams. For example, the Shell V-Power premium gasoline fuel has been developed with the many years of technical expertise between Shell and Ferrari.
Ferrari have had agreements to supply Formula One engines to a number of other teams over the years, and currently supply Scuderia Toro Rosso and Sauber F1 Team
The different types of distribution channels are: Direct channels which link the producer directly to the consumer. Indirect channels which vary in length depending on the number of intermediaries. Hybrid channel: The term "hybrid marketing channels" refers to a business use of more than one marketing channel to market its products. This has become more common as companies find that using one channel alone may not be sufficient to stay competitive.
Ferraris first vehicle was the 125 S sports/racing model. In 1949, the Ferrari 166 Inter, the companys first move into the grand touring market, which continues to make up the bulk of Ferrari sales to the present day. Several early cars featured bodywork customised by a number of coachbuilders such as Pininfarina, Zagato and Bertone. The Dino was the first mid engined Ferrari. This layout would go on to be used in most Ferraris of the 1980s and 1990s. V8 Ferrari models make up well over half of the marques total production. For a time, Ferrari built 2+2 versions of its mid engined V8 cars. Although they looked quite different from their 2-seat counterparts, both the GT4 and Mondial were closely related to the 308 GTB. The company has also produced front engined 2+2 cars, culminating in the current 612 Scaglietti and California. Ferrari entered the mid engined 12-cylinder fray with the Berlinetta Boxer in 1973. The later Testarossa remains one of the most famous Ferraris.
Ferrari P4/5 Ferrari has produced a number of concept cars, such as the Ferrari Mythos. While some of these were quite radical (such as the Ferrari Modulo) and never intended for production, others such as the Ferrari Mythos have shown styling elements which were later incorporated into production models. The most recent concept car to be produced by Ferrari themselves was the 2010 Ferrari Millechili. A number of one-off special versions of Ferrari road cars have also been produced, some of which have been commissioned by wealthy owners. One of the examples is the Ferrari P4/5.
The Special Projects program is a collaboration by Ferrari with Italian automobile coachbuilders such as Fioravanti, Pininfarina, and Zagato to build custom cars using selected Ferrari models as a structural base. The first car under this program is the SP1, commissioned by a Japanese business executive. The second is the P540 Superfast Aperta, commissioned by an American enthusiast
Enzo The companys loftiest efforts have been in the supercar market. The 1962 250 GTO may be considered the first in the line of Ferrari supercars, which extends to the recent Enzo and FXX models.
Ferrari has considered making hybrids. A F430 Spider that runs on ethanol was displayed at the 2008 Detroit Auto Show. Ferrari has announced that a hybrid will be in production by 2015. At the 2010 Geneva Motor Show, Ferrari unveiled a hybrid version of their flagship 599. Called the "HY-KERS Concept", Ferraris hybrid system adds more than 100 horsepower on top of the 599 Fioranos 612 HP
The estimated total of Ferrari built and sold cars in whole company history is about 130000. Sales to end customers (number of type-approved vehicles) Year 1 2 3 4 5 6 781999 3,7752000 4,0702001 4,2892002 4,2362003 4,2382004 4,9752005 5,4092006 5,6712007 6,4652008 6,5872009 6,250
Based on the SWOT analysis done in respect to Ferrari operations, it will be suggested that Ferrari focuses more on it opportunities and strength in the area of business diversification and innovative products which can make it realize more revenue and patronage and also work on its weaknesses and threats in the area of global economic instability and competitive pressure from other manufacturers of automobile industry.