Fiat External Environment Essay

1110 Words Dec 17th, 2013 5 Pages
Are Americans ready for smaller is better?
Strategic Development and Implementation
Introduction
America, a nation which when it comes to cars has historically sided on the bigger is better side of the spectrum is being invaded by smaller, more economically conscious vehicles. Fiat has been manufacturing smaller for years, overseas in Europe, Brazil and even China. With the acquisition of the American made Automotive company Chrysler in 2009, Fiat has launch a marketing campaign to finally gain a hold in the American market. Is America ready for “Every Once in a while, something comes along so powerful in concept, so revolutionary in design, it redefines a generation – America, get ready for the one and only FIAT 500.
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FIAT has built a global distribution network which has now incorporated Chrysler into the fold. With the addition of Chrysler and FIAT renewed launch of its smaller, Eco-friendly vehicles into the American automotive industry. In the American general environment, FIAT has to contend with customers who are used to purchasing bulky sized vehicles. Where economically vehicles were once seen as a joke. America's legalities may promote the purchasing of vehicles like the FIAT 500 for its emissions but the American culture and social mind set craves the fast and the furious not the compact and comfy.
Industry Environment Though FIAT is a world class competitor in the automotive industry, America is a world in-of-itself. To FIAT's advantage, American have come to embrace foreign vehicles with enthusiasm. The German made BMW and Porsche are considered luxury cars to most Americans. FIAT is aiming to replace not the luxurious but the common car. The common car in America are Nissan, Ford, Honda and Toyota. There is a large difference between what FIAT is offering versus what they are offering. But with the economical direction the world is heading leaner is better, FIAT may be able to find a viable market in America.
Competitor Environment America is one of the few nations that values bulky vehicles even in urban areas where trucks should be considered to cumbersome to

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