Part 1

Please complete a SWOT for the FIAT 500.

External Analysis

Threats Opportunities
World Market
• Because of the economic recession, a huge drop was experienced in 2009 (the highest drop is seen in Japan and USA
• Saturation of old industrial nations such as USA and Europe
• Increase in oil prices that causes the increasing raw material costs
• Change in consumer habits who prefer to use public transport systems because of increase in oil price and environmental concernslowdown expected in developed countries
• High competition in the small car market
• Competition from Mini and Smart
USA
• Since 2005: Strong hamper of the domestic market (-14%) that will cause the shutdown of many production plant.
Japan
• Sharp decline of domestic market (-19,1%)
• Toyota has become the leading carmaker at the world level and Honda the second largest in Japan
South Corea, China, India
• Produce competitively low price cars
• China becomes a new big competitor on the eco-friendly cheap cars
Eurozone
• Strong hamper of the domestic market that will cause the shutdown of many production plant.
• Car manufacturer have to reduce CO2 emissions from their cars
UK
• Shift in consumer behaviour Brits buying behaviour has moved from big cars to small car sector World Market
• A strong recovery of around +19,3% awaited in 2010
• Strong potential of growing emerging countries such as China, India, Brazil and Russia as well as CEEC countries
USA
• Strong recovery is expected in 2010 (+10,7%)
• GM, Ford and Chrysler are under pressure because of lower costs foreign automakers, decrease in their share price, increase in oil price that turned demand into more economic cars.
• Increasing demand for economic cars
Japan
• Recovery is expected in 2010 (+15,4%)
• Honda car makers are experiencing difficulties due to the decrease in USA demand (they were their main customer) and appreciation of Yen
CEEC
Biggest increase is expected in this area (+ 26,9%)