Analysis of Opportunities and Threats in the Automotive Industry

Applied Strategic Corporation
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Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
1. Carry out the external analysis to identify the set of opportunities, threats and assess
industry attractiveness.................................................................................................................3
2. Analyse the different resources and key competences of organization to identify strength,
weakness, identify its core competences.....................................................................................7
Strategy evaluation....................................................................................................................12
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16
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INTRODUCTION
Applied strategic management is based on the process or method that involves formulation,
implementation of major goals, initiatives taken by an organization to manage or control
different operational activities. Strategic management provide the brief overview direction to
enterprise and involves specifying the certain objectives.
This report will discuss about the analysis of opportunities, threats of attractiveness of
automotive industry with application of pestle, porter’s five force external environment.
It provide the evaluation of internal ability of “Fiat Chrysler” company and identifying
capabilities, resources and identification for both strength and weakness with application of
value chain. This report will describe SAFs criteria as strategy and mapping the stakeholders to
evaluate Fiat Chrysler and Peugeot Acquisition.
MAIN BODY
1. Carry out the external analysis to identify the set of opportunities, threats and assess industry
attractiveness
Pestle analysis
Fait Chrysler Automobile Company can use Pestle analysis as strategic tool or platform
that help for analysing macro environment of enterprises. PESTLE stands for political,
economic, social, technological, and legal and environment factors that impact on the Fiat
Chrysler Automobile Company (Argyres and et.al., 2020). Typically, Pestle analysis has
provided the brief idea about the challenges of fiat Chrysler Company. It will face in prevalent
macro environment other than competitive force.
Political Factor- This factor play an important role in identifying particular impact on Fiat
Chrysler automobile company. In order to gain more profitability as well as productivity in a
certain marketplace. Usually, this was more than dozen nations and expose itself to various
political environment or system. This will be generating a risk in term of corruption, intellectual
protection. When achieve success of business in Auto Manufacturers within across counties to
diversify the risk regarding political environment such as safety regulation with industry.
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Economic Factor- This factor is related to the saving rate, inflation, foreign exchange and
economic cycle that identify the aggregated demand, investment in economy. This type of macro
environment factor impact on the Fiat Chrysler automobile company in term of competitive
advantage. This company can use nation’s economic factor like inflation, growth rate as indicate
the manufactures. Sometimes, it is also spending to forecast growth trajectory of not only
automotive sector and but entire enterprise. In this Economic factor, Fiat Chrysler Company
should be considered the recession system in nations of operation in order to increase instability,
infrastructure quality of goods and services.
Social Factor- This factor is based on the social culture or environment that directly impact on
the organization. Usually, individual people will share their own beliefs, attitude of population,
which play a great role in marketer at Fiat Chrysler Automobile firm (Argyres and et.al., 2020).
It can be identified the potential consumer of given market and how they can design marketing
message of Auto manufacture. Social factors are considered as leadership of Fiat Chrysler firm
should analyse demographics, skill level of population, class, hierarchy of individual within
society.
Technological Factor- Advancement of technology is fast disrupting various manufacturer
industry across global world. Transportation is consider as one of good case to illustrate this
point. Over last five years, Fiat Chrysler firm is focused on transforming their service in global
marketplace (David, 2020). It is always tried to implement automation led by technology within
their different vehicles. The company should not include technological aspects but also speed at
certain level, disrupt that industry. Fiat Chrysler can involve recent technological development
and give a tough competition for their alternative competitors. This innovation is directly impacts
on the cost, price of entire structure in Auto manufacturers.
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