Strategic Analysis of Ferrero S.A

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Strategic analysis of Ferrero S.A

By: Vignesh Ganesan (ID: 18147117)

MSc Logistics & Supply Chain Management

Faculty of Computing, Engineering and Built Environment

Course: Strategic planning for the supply chain

Course Leader: Professor Jahangir Akhtar; PhD Dimitra Kalaitzi

Submission Date: 14.01.2019

1. External Environment Analysis (5 forces or PEST)

1. Industry overview

1. Internal Analysis - SWOT

1. Strengths

• Market Position & Reputation: ^[1]Porsche luxury and comfortable cars and established himself therefore as a global player and gained a huge reputation over the years all around the world. Porsche represents the slogan “Made in Germany” with high quality and trustiness.
• Costumer Base Loyalty: The automotive manufacturer was able over the last couple of decades to develop its own loyal target group. This shows that CRM is very important to Porsche.
• Expertise: Porsches’s success is based on an excellent technological & management knowledge. Furthermore Porsche has its own Consulting Company “Porsche Consulting GmbH”^[2], to help other companies with their gained knowledge from working at Porsche. At Porsche AG in 2018 a huge growth of employees is registered: The first time in the history of Porsche the company listed with 30 500 over 30 000 employees (July 2018).
• Code of Conduct/ HR: Besides the concept of sustainability, which is mentioned in 1.3 Porsche takes very care of its employees, to have a familiar atmosphere in the company. These HR elements are listed in the code of conduct^[3] of Porsche and consists aspects such as human rights, data/IT protection, occupational safety & healthcare or political lobbying. The code of conduct of Porsche should create a positive image of Porsche for the publicity. That shows that values such as CSR (Corporate Social Responsibility) are very important to Porsche.
• Technology: E- Mobility is a huge current challenge for the automotive industry. With the built of an own E- factory in Weissach, which is specialized on E- Mobility, Porsche is able to expand their competencies in this field and to fulfil their “Mission E”. Furthermore Porsche is putting on Plug- In Hybrids and gasoline engine, because there is costumer demand for all three technologies. With the Until 2025 Porsche wants to electrify over 50% of their selling cars. Porsche’s future vision due to this point is to secure their profitability with the sales of E- cars. Besides E-Mobility, Porsche manages successful another big challenge, the digitalisation. Near to the headquarter in Ludwigsburg Porsche established a company which is specialized on digital transformation. The culture there is comparable with a Start- Up: Innovative and creative to search new value chain potentials and smart solutions^[4].  
• Variation: Porsche offers a plenty of models of his cars: 718, 911, Cayman, Panamera, Macan, Cayenne and Taycan. For each car there is a huge variation the costumer can choose between: For instance the Porsche Panamera is available as E- Hybrid, GTS and Turbo- Models. Therefore Porsche integrates their costumer in the value chain production process^[5]: Porsche shows flexibility and is able to implement individual desires from the costumer in the production process of the car.

1. Weaknesses

• Price:
• High maintenance:

1. Opportunities:

• Project Taycan 2019: With the fully electrified car Taycan, which Porsche will launch in 2019, the battle with Tesla is opened. Porsche are totally convinced to be competitive in the market of full- electronic sports cars with his new product Taycan.
• Expansion Asian market: Apprendix 1 shows the enourmes potential of the Asian market (China, Japana, Indonesia). This confirms Detlev von Platen, “Member of the Executive Board responsible for Sales and Marketing at Porsche AG: “China was again the largest individual market for Porsche””^[6].

1. Threats

• Competition: Even with the new vision of their new big project with the Porsche Taycan remains the competition high with the other luxury giants such as Ferrari or Jaguar Range Rover.
• Costumer Acceptance: Although Porsche is working on the E- Transformation, there is always an uncertainty how the costumer will react and accept to the enhanced engagement to produce more E- driving cars. The traditional costumer connect with Porsche speed and sporting sound. So there is a doubt if Porsche can fulfil those traditional values of Porsche cars in connection with E- Mobility. In addition to that it has a big influence in an economic point of view: The aim and the simultaneously threat for Porsche is to raise their return of rate by selling almost half of their cars with E- Mobility.

1. Vrio Framework

1. Recommendations

Apprendix 1