Ferrari is an international auto mobile company based in Italy, Maranello the place where the founder Enzo Ferrari was raised and started the production of these luxurious cars. It has been established in the late 1940s, that very same year Enzo Ferrari drove the very first model of a Ferrari car, 125 S out onto the roads. That very same year Ferrari also took part in Formula 1 racing, with their very own car instead of the Alfa Romeo that they used to race with, and has ever since conquered many races over the years. Currently, some of the yielding members of this multibillion company would be Amedeo Felisa(CEO), Sergio Marchionne (Chairman) and Piero Ferrari(Vice Chairman). Ferrari’s aim is to achieve an expanding market in the luxury car
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The legal factor affecting Ferrari would be the safety in Singapore. Singapore is a small country with scarce land. As a result of that, the Singapore government has implemented many restrictions on the roads such as speed limits and speed cameras. This would affect Ferrari as the Singapore consumer market would not be able to stretch the car to its full potential. Majority of the consumers would find this a waste of money as they would not be able to enjoy the car’s abilities. Michael Porter’s 5 forces analysis makes up of 5 factors. The 5 factors are supplier power, buyer power, competitive rivalry, threat of substitution and lastly the threat of new entry. Porter’s 5 forces is numerously used to determine an industry’s structure in pursuance to pin down the corporate strategy. Porter’s model can be utilised to any division of the economy in search of profitability and …show more content…
Which means the expansion of the company. This would apply to the competitive rivalry factor from the Porter’s 5 forces. In order for Ferrari to have a competitive advantage, Ferrari would have to expand their company’s products. Currently, Ferrari has a clothing and fragrance line. Apart from that Ferrari would need to consider expansion, such as eco friendly cars and lower end cars for an example. This will attract customers to them, as recent trends are all about reducing carbon footprints. With lower end cars available in the market, more consumers would be able to afford a Ferrari.
The next strategy would be the concentration strategy, which means to be the best in the industry. This strategy would affect the threat of new entry. Being the best in the industry would ensure security as Ferrari would be well established and even if there were new entrants, Ferrari would have customer’s loyalty no matter what. Consumers would not mind paying more for a well established product, as the quality of the product is the most important and it is
The legal factor affecting Ferrari would be the safety in Singapore. Singapore is a small country with scarce land. As a result of that, the Singapore government has implemented many restrictions on the roads such as speed limits and speed cameras. This would affect Ferrari as the Singapore consumer market would not be able to stretch the car to its full potential. Majority of the consumers would find this a waste of money as they would not be able to enjoy the car’s abilities. Michael Porter’s 5 forces analysis makes up of 5 factors. The 5 factors are supplier power, buyer power, competitive rivalry, threat of substitution and lastly the threat of new entry. Porter’s 5 forces is numerously used to determine an industry’s structure in pursuance to pin down the corporate strategy. Porter’s model can be utilised to any division of the economy in search of profitability and …show more content…
Which means the expansion of the company. This would apply to the competitive rivalry factor from the Porter’s 5 forces. In order for Ferrari to have a competitive advantage, Ferrari would have to expand their company’s products. Currently, Ferrari has a clothing and fragrance line. Apart from that Ferrari would need to consider expansion, such as eco friendly cars and lower end cars for an example. This will attract customers to them, as recent trends are all about reducing carbon footprints. With lower end cars available in the market, more consumers would be able to afford a Ferrari.
The next strategy would be the concentration strategy, which means to be the best in the industry. This strategy would affect the threat of new entry. Being the best in the industry would ensure security as Ferrari would be well established and even if there were new entrants, Ferrari would have customer’s loyalty no matter what. Consumers would not mind paying more for a well established product, as the quality of the product is the most important and it is