This Slide has been made to analyse how and why Ferrari was able to become one of the most exclusive brand recognized in the whole world. Through a deep analysis of factors will be shown how internal decisions of the company are reflected on the external environment. In particular, through the internal analysis will be given emphasis to the values of the company, which include high attention to environment and human needs. It will continue analysing the strategy decisions and the supply chain of the company, finishing with a consideration on the combination of emergent and prescriptive approach. In the second part will be discussed the external factors of the firm using more specific tools, as SWOT and PESTEL analysis. The conclusion will touch on the new challenges of the company and the strategy for the future.

1. FErrari
ORGANIZATION AND CORPORATE MANAGMENT
YARI BRUGNONI, IMIM 2014-2016

2. introduction
INTERNAL ANALYSIS EXTERNAL ANALYSIS
• Work philosophy and
Environmental attention
• Strategic Decisions
• Supply Chain
• Competitors and
Customers’ Analysis
• Environmental Analysis
• Market Analysis
HOW LONG ARE YOU WILLING TO WAIT FOR DRIVING
YOUR FERRARI ?
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3. Company overview
• MISSION
• HIGH INVESTMENTS AND INNOVATIONS through R&D of race cars:
• ETHICAL AND SOCIAL RESPONSABILITIES
Ferrari is an eco-friendly company that cares about the well being of its employees
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4. history
• 1929: Scuderia Ferrari was founded by Enzo Ferrari as a race team
• 1947: presentation of first Ferrari’s model. It will win the Rome Grand Prix
• 1969: Fiat purchased 50% of shares
• 1988: manufacturing of F40
• 1988: Enzo Ferrari died and Fiat acquired 90% of the company
• 1991: Luca Cordero di Montezemolo as new Chairman
• 2014: L.C. di Montezemolo has been replaced by Sergio Marchionne
• 15 F1 Driver’ s World titles and 16 F1 Constructor’s World titles, 9 victories in the
Le Mans 24 Hours,8 in the Mille Miglia …
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5. Ferrari dna
SUSTAINABILITY
• Reduce polluting emissions (-42% CO2)
• Produce energy & renewable energies
• Improve safety and quality of life of its
employees
INNOVATION
• 150 patents registered
• Integration on road cars of F1 technologies
• Benchmark for the entire automotive
industry
DESIGN
• Mix of innovation, extreme technologies,
endure quality and design
• Make cars recognizable maintaining its
traditional values
PEOPLE
• 2,900 employees: 40% white collar, 60%
blue collar, with an average of 38 years.
• Formula Uomo philosophy
• High level of knowledge: 70% WC has a
degree, 60% BC has a diploma
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6. Strategy
development
CENTRALIZED STRUCTURE
• Centralization of decision-making among the highest managerial levels
• Guarantee constant high quality standards for each vehicle
• No tolerance for defects à precise guidelines to be followed
• Workers high trained and well prepared
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7. Supply chain
• Unique manufacturer factory, 6 Regional Office that manage the distributors’ network
• Exclusive Distribution model à low-volume (7,000 units) & high price
• Introduction of new ERP system (INFOR LN) to reduce the delivery time from
18 to 12 months
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8. Resources &
capabilities analysis
RESOURCE-BASED VIEW (RBV)
Differentiation
Niche marketing
High Performance and Technology
Quality and Service
Vertical Integration
Synergy
Breakthrough Resources
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9. Prescriptive or
emergent ?
Ferrari’s strategic management is a mix of prescriptive and emergent approach:
RACE CARS SPORTS CARS
• Unclear objective every year
• Unpredictable environment
• Extreme relevance of
human needs
• It follows its Mission
• Objective defined in advance
• High and constant
investments
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10. Environmental
analysis
• The global sale of vehicles presents a stable increase in the future (up to
101,4 million in 2019);
• luxury cars market will grow quicker than the car market as a whole;
• Rapid and different changes, depending on geographic areas;
• US has been Ferrari’s first market (+9% 2013), while Europe were down of
13%;
• Automotive industry life cycle has reached its mature phase;
• Medium-high degree of market turbulence à environment or safety
restrictions, economy changes and political decisions.
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11. Pestel analysis
• Environmental
policies
• Employees’ contracts
• Technological
pioneer
• 150 machineries’
patents
• Increasing attention
on CO2 emissions
• Renewable resources
• Fuel emissions
• Passengers’ safety
• Products adaptable to
any weather and
climatic conditions
• Economic crisis
• Growth of emergent
countries
TechnologicalEnvironmentalLegal
PoliticalEconomicSocial
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12. 5 porter’s forces
POWER OF BUYERS
• Medium-High
• Can choose between many brands/
substitutes products
• Increasing access to information
POWER OF SUPPLIERS
• Medium
• Few suppliers match luxury brand
requests
• High switching costs
ENTRY THREATS
• Low
• High investments and technologies
• Glorious history of many companies
• Government regulations
SUBSTITUTIONAL THRETS
• Medium-High
• All the means of transportation
• Status-products, as Harley Davidson
RIVALRY
• High and Intense
• Similar car manufacturers aiming at
the same market segmentation
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13. Swot analysis
STRENGHTS
• Investments on
Innovation&Technologies
• Brand recognition
• Combination of design&performance
• Attention to weel-being and
satisfaction of its employees
WEAKNESSES
• High performance vs. environmental
policies
• Low-volume production
• Waiting list of 18 moths
• Specialized employees à critical
resource and high costs
OPPORTUNITIES
• Growing economies/new rich people
• Diversify the market
• Increase the limit of units produced
THREATS
• Restriction of emission norms
• Many substitute products
• Economic uncertainty
• Competitors are expanding their
products' range
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14. competitors
1929
2,900
7,000
230,000 $
$2.2 billion
1931
15,000
128,000
48,500 $
$11 billion
1963
1,029
2,122
182,000 $
$560 million
• Founded in
• Employees
• Prod. Volume
• Starting price
• Revenues
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15. Conclusion
• Combination of high quality, performance and design
• Low volume/high price strategy
• Exclusivity of the brand
• Second-hand market
• Formula Uomo and attention at environmental aspects
• Marchionne’s changes: 10,000 units and focus on F1
• Lead time reduction (18 à 12 months)
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16. END
ANY QUESTIONS?
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