The Competitive Market Threat for Fiat

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Situation Analysis Threats (10 marks) describe the threats that you have identified and their implications for your decision from a review of the competitive analysis and the PEST environmental analysis. Internal competition to Fiat come from the "big Three", Ford, GM, and Chrysler, whilst external competition comes from makers such as Toyota, Honda, and Hyundai. Since Fiat will also be using the Alfa Romeo Giulietta model it will also be faced with competition from other manufacturers of that model that included Nissan, Mazda, Volkswagen, BMW, Audi, and Mercedes . The competition will rest on factors such as size of vehicle, fuel economy, seating, engine, and price with safety being a primary factor for many families. The European market has its own competitors that include vehicle manufacturers such as Audi A3, the BMW 1 series, Volkswagen Golf, and Mazda 3 . local competition has upped its offerings with incentives such as % financing for terms of up to 84 months, extended warranties to 120 000km, and promotional products such as ipods with purchase. Promotion and marketing has also become aggressive with ventures such as employee pricing events, and seasonal advertising .The Alfa Romeo brand that Fiat intends to reintroduce to Canadians in 2013 is an upscale division of Fiat that last sold cars in the Canadian market in 1995. Its Giulietta Spyder and Sprint models are known for their sporty handling and racing capabilities. These characteristics, however, meet their

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