SWOT Analysis is a strategic planning technique that organizations use to determine their strengths, weaknesses, opportunities, and strengths in areas such as project planning and company competition. Thus, let us begin with Ferrari’s strengths:
Table of Contents
1. Ferrari’s advantages
- Strength is the characteristic that sets you apart from the competition listed below –Ferrari invests heavily in research & development. Its primary focus is on innovation or technology that distinguishes it from competitors.
- Ferrari has the best features such as electric propulsion, top speed, horsepower, rear-wheel drive, hybridization, traction, seating body style, clearance, and special design.
- Ferrari is an automatic car that combines world-class safety features with an attractive style that caters to client preferences and aims to preserve a solid relationship with existing customers.
- High market share – Ferrari has great brand equity, which attracts more investors. Ferrari’s share price is consistently at an all-time high. Investors always invest in brands whose stocks, bonds, and mutual funds are consistently performing well.
- Goodwill- It is critical for a business to keep its goodwill for as long as possible; if the company’s goodwill suffers, the entire business suffers. The product’s quality and after-sales services such as guarantee and warranty all contribute to the company’s goodwill.
2. Ferrari’s Weaknesses
Weakness is the aspect of a business that must be improved in the future. Therefore, let us consider the following points:
- Ferrari provides luxury items that the average person or common man cannot afford, such as the Ferrari Roma, Ferrari 812, Ferrari F8 Tributo, and Ferrari Portofino. However, Ferrari makes a high-quality product that is unmatched by other brand products.
- Competition- In the current market environment, there are numerous firms competing with Ferrari, including BWW, Lamborghini, Audi, Mercedes-Benz, Porsche, Jaguar, Aston Martin, and Bentley.
- Fuel efficiency- Generally, Ferrari cars require gasoline or diesel, but as demand for gasoline increases, supply decreases. This is the most imminent vulnerability or issue that Ferrari will face in the future.
- Culture- Because India is known for its culture, it is quite tough to integrate the firm culturally. If Ferrari wishes to expand its company in India, it must first have an understanding of the Indian customer’s preferences, tastes, and culture.
- Supply chain and distribution- Although Ferrari covers the entire globe, supply chain and distribution are quite limited. They’ve established an impenetrable supply chain and established stores or warehouses throughout the country, making it easier for distributors to make the goods available in the appropriate location at the right time. We rarely see Farreri on the road because it is only available to a select few and is also quite expensive.
- Ferrari is specialised in automobiles, but he must also focus on other products such as fabric, watches, bags, jackets, caps, and belts.
3. Ferrari’s Prospects
Opportunities are areas in which a business might concentrate its efforts in order to enhance outcomes, boost sales, and ultimately profit. Therefore, let us examine the opportunities that exist –
- Market Expansion- For any business, more market expansion equates to increased income. Without revenue, the firm cannot expand. The more it expands in emerging economies, the better for the brand, particularly in India, which need additional expansion. India is still in the process of development.
- New taxation policy- As the state alters the taxes regulations, it facilitates the import or export of goods, raw materials, and other goods, thereby developing the economy. Each country desires to create its own country.
- Technological advancement- Demand for new innovative products increases as a result of the Ferrari’s introduction of new and innovative autos. Additionally, it is committed to the environment and public health, and focuses on the manufacture of battery-powered ride cars.
- Ferrari should extend its consumer base by offering products that meet their needs and desires. Products are classified according to price since lower-middle-class people seek to purchase items at a discount. They can advertise and grow their customer base with internet marketing.
4. Ferrari’s Threats
Threats are environmental elements that can prevent a business from expanding. The following are the things to consider:
- Customer expectation– Increasing customer expectations may not be met, posing obstacles to the economy’s progress. As client perceptions alter over time, their preferences vary by age group, such as teen (13-19) years, adult (20-39) years, middle-aged adult (40-59) years, and senior adult (60+).
- Custom policies- Distinct nations have different policies, and we must adhere to their standards in order for the organisation to grow. Tariffs and taxes are established by governments to limit imports; the rate of taxation varies by country.
- Demand and supply – Keeping the market’s demand and supply balanced is a difficult undertaking. Because the market is constantly fluctuating in terms of demand and supply, we must psychologically and physically prepare.
- Skills shortage- It is not advantageous for every country to have skilled people.The worker’s efficiency and effectiveness are critical, as is the optimal utilisation of raw materials. A business must recruit bright and diligent employees who can also contribute to the company’s expansion.
- Launching at least one new model per year in addition to creating and launching a limited edition each year to keep client curiosity.
- Purchase superior raw materials in order to create superior finished products.
- Cost-effective technology innovation.
- Customer base that is selective
Ferrari manufactures not only automobiles but also eyewear, pens, pencils, electrical goods, perfume, apparel, high-tech bicycles, watches, cell phones, and laptop computers.
As previously said, Ferrari is a luxury brand that manufactures timepieces in a variety of price levels that are MADE IN ITALY. Ferrari is a contemporary and trendy watch brand that appeals to youths and young adults.
STP OF Ferrari
What Is the STP Marketing Model?
The STP Marketing Model can help you to analyze your product offering and the way you communicate its benefits and value to specific groups.
The model is useful because it helps you to identify your most valuable types of customer, and then develop products and marketing messages tailored to them. This allows you to engage with each target group more effectively, personalize your messaging, and – ultimately – increase your sales.
STP stands for:
- Segment your market.
- Target your best customers.
- Position your offering
The majority of Ferrari owners are high-earners in the 25-49 and 50+ age brackets. The typical Ferrari owner is presumably a middle-aged male in his mid-fifties. Rarely is a Ferrari purchased for the sole purpose of transportation; in fact, the majority of Ferraris are purchased as the second or third automobile in a household.
Ferrari owners in the younger age bracket are few and far between. This is primarily owing to the cars’ exorbitant pricing. Additionally, there is a group of male sports car owners whose cars are mostly used as recreational vehicles on racing tracks or on weekends.
This is apparently not an uncommon occurrence, which makes sense given that the majority of people who purchase a Ferrari are not saving every cent for it but rather have more than enough income to support such a lifestyle.
Ferrari is aimed towards a certain market sector. Ferraris are purchased for their status and performance. Few people can genuinely afford a Ferrari, despite the fact that it is the world’s most wanted automotive brand.
The target market consists of individuals with a high income and a solid background who wish to emphasise their status and are interested in luxury sports automobiles.
Positioning is concerned with the target market segment that the business want to service and the competitive advantage that the business will have over rivals in that segment. Ferrari occupies a unique position in the prestige section of the automobile market, owing to its high performance and exclusivity.
Ferrari is a prestige symbol synonymous with great performance, strength, and design. Consumers regard purchasing a Ferrari as having made it.
To recap, Ferrari has existed for almost a century and is a formidable brand deserving of conversation and attention. I hope you have a better understanding of how Ferrari was able to prosper in this fast-paced sector.
Ferrari has successfully maintained product quality and brand image over a long period of time and has earned brand loyalty through premium items. It locates its outlets in areas where targeted audiences congregate.