4. 4
Company Overview
• Ferrari who?
Manufacturer of Italian racing cars and high-
performance sports cars
Located in Maranello, Italy Emilia-Romagna region
Manufacturing since 1946(?)
Racing since 1929
Employees (2011): 2968
Sales(2011): $1,582.8 million
Market share: < 1%
8. 8
Company Overview
•
History of the logo
Enzo Ferrari told the story of the prancing horse
logo just once:
The horse was painted on the fuselage of the
fighter plane of Francesco Baracca — a heroic
airman of the first world war..
9. In ’23, I met count Enrico Baracca, the hero’s father,
and then his mother, countess Paulina, who said to me
one day, ‘Ferrari, put my son’s prancing horse on your
cars. It will bring you good luck’. The horse was, and
still is, black, and I added the canary yellow background
which is the colour of Modena
9
14. 14
Information Technology
• Formula 1 is the focus of Ferrari’s technology
investment
Racing is Ferrari’s heritage
Integration is a competitive advantage
Ferrari only company that designs and manufactures both
engine AND chassis
Car design cycle ≈ 9 months
Design = 6 months
Manufacture = 3 months
Technology key to meeting timeframes!
F1 technology then trickles down to commercial vehicles
Paddle shifters, independent suspension, disc brakes…
15. 15
Information Technology
• Primary uses for information technology
Telemetry
Real-time collection/analysis of car performance during a race
Over 500 different characteristics measured in real-time
Design
Engine
• Weight reduction
• Power (engines already produce > 800 bhp)
Chassis
• Weight reduction
• Aerodynamics/Downforce
16. 16
Information Technology
• PTC
CAD/CAM software
• Ricardo
Dedicated CFD program for
engine flows
• CRF (Fiat Research Center)
Data acquisition packages
• General Electric
Commercial aircraft engine
operation new material
research
• Massachusetts Institute of
Technology
Combustion research
• Shell
Lubricants
• SKF
Bearing technology
• AMD
Data center
• Acer
Workstations
Key Information Technology Providers
18. 18
A Global Presence
• Ferrari sells ≈ 4,300 high-performance
sports cars a year
Prices $140,000 - $260,000
To safeguard exclusivity and high value, the company has set
a self-imposed production limit
• Models
F430
Scaglietti
20. 20
A Global Presence cont…
• Beginning in 1979, the North American import
and distribution of Ferraris was handled by Fiat
SpA
In 1990 Ferrari North America was established
The company imports and distributes its vehicles from
Maranello, Italy
The exports are done through a network of more than 300
sales and service centers in 45 countries
21. 21
Ferrari Clientele
• Ferrari's main markets are:
United States
Germany
Great Britain
Italy
The countries of the Pacific area
Switzerland
90% of all production is exported.
Total units sold worldwide: 6,099 (Ferrari 4,072, Maserati 2,027)
Major market sales in 2000
The portfolio of orders taken by the dealership network is far higher
than the numbers of cars that Ferrari can actually deliver.
22. 22
Outsourcing
• Ferrari Outsourced Engine Development
Ferrari and Tata Consultancy Services (TCS), Asia’s
largest software company, have concluded a deal
which calls for TCS to provide IT and engineering
services for the development of Ferrari’s Formula 1
racing car
TCS solutions would include car electronics, safety,
aerodynamics, and troubleshooting
23. 23
Competition
• Ferrari’s are considered high-end luxury vehicles
• Main competitors
Lamborghini
Gallardo, Murcielago
Porsche
911 GT2, Boxter S, Carrera GT
Aston Martin
V12 Vanquish S, DB9, V8 Vantage
26. Positioning
• Positioned as a premium sports car
manufacturing company providing best features
and latest technology as well as best in class
sporty driving experience
26
27. Product Portfolio
Brands
• 1. Ferrari F12 Berlinetta
• 2. Ferrari FF
• 3. Ferrari 458 Spider
• 4. Ferrari 458 Italia
• 5. Ferrari California
• 6. Ferrari F50
• 7. Ferrari F40
27
28. SWOT ANALYSIS……SWOT ANALYSIS……
Strength
1. Rich heritage and legacy
2. Looked upon as a cult brand and possesses
strong brand equity
3. Extremely strong presence in the racing world
4. Provides an interactive channel to the owners
through owner’s group
5. Extremely capable design and R&D department
28
29. 6. Very light alloy used in manufacturing resulting
into better acceleration and handling
7. A dedicated pre-owned program to facilitate
second hand sales increasing customer reach
8. Endowed with world class safety facilities
29
30. Weakness
• 1. Extremely high priced
• 2. Limited potential customer base in some
markets
• 3. Limited distribution and service network
• 4. Lack of experienced service professionals in
many countries
30
31. Opportunity
• 1. Increasing pride in owning Ferrari
• 2. Entering in hybrid and future car segment
• 3. Leveraging the owners group network to
reach potential customers
• 4. Differentiating the product portfolio to
accommodate variants
• 5. Augmenting the distribution and service
network
31
32. Threats
• 1. Various custom policies in some countries
making purchase a long procedure
• 2. Increasing expectation from customers might
not be met
• 3. Product innovations and frugal engineering by
competitors
32