In this presentation i have covered several Micro and Macro environmental Factors that affected FIAT India. This was a prepared in 2014.

1. MARKET ENVIRONMENT ANALYSIS ON FIAT INDIA

3. Micro Environment Factors Affecting
FIAT India
• Competitors

4. • One of the biggest threats in any business and in any industries
are its competitors
• In Automobile industry competitors are wealthy, big and tough
to deal with, as they are big in size especially the foreign rivals
such as Volkswagen, Fiat, BMW etc.,
• Competition can be either in margin based segments such as
premium cars and volume based such as mid segment cars
• FIAT India falls under the mid segment category where it
competes directly with companies such as maruthi Suzuki, Tata
Motors and Volkswagen
• FIAT India has loosened lots of its ground to their competitors
for a long time, as the market penetration for FIAT India is low
compared with its rivals.

5. Sales Figures of FIAT India
• FIAT India holds a market share around 0.6% and it is expected
to grow around 50% YoY

6. • Companies are born to serve customers and to earn
profit from them
• Customers are King in any business
• Customer Satisfaction is a key element for success of
any business and it’s one among the effective tool for
customer retention
• FIAT India is one among the few automobile
company, which has a low level of customer
satisfaction due to its poor aftersales service and
some technical glitches.

8. • It has recently acquired Chrysler, which FIAT is very
proud off
• In India FIAT has failed to offer quality after sales
service and a strong product lineup
• FIAT India can focus on launching its partnership
alliance cars such as Abarth (Expected in India,
October), Alfa Romero and it can even try bring in its
recently acquired Chrysler in the Indian market as
the market even has premium segment.

10. RETAIL NETWORK
• FIAT India’s Retail network has few flaws, which affects its
business by decreasing its sales unit
• FIAT and TATA’S Retail network was a nightmare for both the
companies
• FIAT Turned Independent
• FIAT India has 150 Dealers around India, Where the network is
more than its Demand
• FIAT incurs more expense on maintaining its network rather
than benefiting from them
• It needs to cut down its network and limit it to 15 Cities around
India. So that it can offer better experience to customers and it
will benefit to the dealer.

11. MACRO ENVIRONMENT FACTORS
AFFECTING FIAT INDIA
• Socio Cultural Changes

12. • Culture is all about trends in usage and yes, there is a culture
followed in Automobiles too
• Automobile industry has transformed dramatically from a
single cylinder engine to Turbo jet engine technology
• customers change their preferences according to the market
trends
• Recent times there is a high demand for Compact SUV’s and
Hot Hatches its because of its stylish looks and appeals
• FIAT has only two model under its Roof namely FIAT
Punto and FIAT Linea
• FIAT needs to launch new products as per the trend
and not as per tradition

13. FIAT CAFÉ CONCEPT

14. FIAT CAFÉ
• New trend within motorsport enthusiast is that going for
an automotive club meets and hanging around for a cup
of coffee
• FIAT observing this trend launched its own FIAT CAFÉ to
give a different experience for its customers. But
unfortunately it was a flop
• FIAT should have offered new product lineups instead of
proving café experience
• Café experience can be given when a strong customer
base is being created
• FIAT India should concentrate more on new customer
attraction and being strong at it.

16. • FIAT products are designed to scream Italian beauty
and quality from every corner but few technical
glitches are diminishing its goodwill
• Technical glitches such as poor electronic output and
hard steering gives customers an unpleasant
experience and which doesn’t tends them to opt for
the product
• Fixing all these technical glitches might create a
positive image and could boost up the sales figures