Applied Corporate Strategy

APPLIED CORPORATE
STRATEGY

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Fiat Chrysler business situation..................................................................................................3
External Analysis.........................................................................................................................3
Internal Analysis..........................................................................................................................5
TOWS Analysis...........................................................................................................................8
Stakeholder Analysis.................................................................................................................11
SAF (Suitability, Feasibility and Acceptability) Matrix............................................................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Corporate strategy is a strategic plan of the company that defines the firm overall aim and
direction and the way in which will be gained within strategic management activities. It is
essential for the company because it enables to allocate its resources, builds company's
expectations and enhances competitive positioning in the business market. The main objective of
this strategy is to achieve all goals financial and non-financial within defined period. There are
various companies which have put high efforts to develop effective corporate strategy so that it
enables to gain high profitability in business (Hernandez and Menon, 2019). To understand role
of corporate strategy has an example of Fiat Chrysler. It is an Italian/American multinational
corporation and has become world's eighth largest auto maker that is headquartered in London,
UK, UK. It posses wide product line and offers them across the world to the customer, In this
report will discuss various strategic models like porter's five force, Value chain analysis in the
Context of Fiat Chrysler .
MAIN BODY
Fiat Chrysler business situation
External Analysis
Porter's five force model
It is a strategic framework that is undertaken by company in order to analyse competitive
environment of business in its business market. It is essential for the organization because it
supports to adjust strategy accordingly competitive situation and improves potential benefits of
the business. This strategic model is applied by Fiat Chrysler plc for analysing intensity of
competition in retail industry wherein it operates. This model comprises five forces such as:
 Bargaining power of suppliers (High)
All most all companies in the retail market buys raw material from suppliers. While skilled
suppliers have less availability in UK's market, so they are in dominant position and can decrease
margin of the retail company's which Fiat Chrysler plc can generate over the product from
customers. For example powerful suppliers have strong negotiating power for extracting higher
price from the retail industry. Thus, higher bargaining power of suppliers directly reduces overall
productivity of retail companies like Fiat Chrysler plc (Feldman, 2020).

 Bargaining power of buyers (High)
High availability of auto mobile companies in UK' market increases bargaining power of
buyers. For example there are various auto mobile companies like Fiat Chrysler sells similar
product like maserati, jeep, ram, fiat, lancia etc. at different prices that brings opportunity for
buyers because they get alternative options to buy products. So, they go only those retail
companies which offers product with high quality at minimum price which directly impact on
Fiat Chrysler profitability. It denotes that bargaining power of suppliers is too high, so they
always seek for discounts and offers (Oertwig and et.al., 2017).
 Threats of new entrants
Threats of new entrant is lower because there are big four companies like Ford, Toyota which
already has established good brand image in the UK's market and sells wide line product to the
customer and have captured good market share over its products In the auto-mobile industry. So,
it will be difficult for the new entrant to establish their business or in a case if the new entrant
open it's business. In that state new entrants initially has to sell good quality product at lower
price but it is not possible for the new entrants because general motors already sells vehicle
product with high discounts. Overall, there is very less threat of new entrants in retail industry.
 Threats of substitute product or services (Moderate)
Threats of substitute product is moderate because most of the retail companies i.e. Fiat Chrysler ,
Toyota and Ford posses' wide product line and services which meets all customer's needs and
expectations. Still, there has very fewer threats of substitute product and services for the Fiat
Chrysler . However, Fiat Chrysler always try to lead innovation in it's existing product and
improves customer's shopping experience. But it can get threat from Tesla in future because it
also posses similar product like Fiat Chrysler but still planning to introduce new features in it's
existing product portfolio.
 Rivalry among the existing competitors (Low)
Fiat Chrysler has established strong brand presence in the UK's retail industry so it is considered
one of the most powerful competitions for auto-mobile companies. Fiat Chrysler is act as market
leader in the business because it offers product at lower price so but it is highly pressurized from
the nearest rivals in term of price wars that has introduced by Tesla and Toyota which directly
affects profit margin of Fiat Chrysler (Mukherjee, 2018).