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Nicole Aderholt Richard Clark Truesdale Kimbrell Kevin Leong TEAM WILLY “GO ANYWHERE, DO...
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Transcript of Nicole Aderholt Richard Clark Truesdale Kimbrell Kevin Leong TEAM WILLY “GO ANYWHERE, DO...
Nicole AderholtRichard Clark
Truesdale KimbrellKevin Leong
TEAM WILLY
“GO ANYWHERE, DO ANYTHING”
November 1940-Original Willy’s Quad
1945-First civilian Jeep is introduced
1950-Willys-Overland
trademarks the Jeep
1970-AMC acquires
Kaiser-Jeep
1974-Introduction of
Cherokee
1987-Chrysler buys AMC
2009-Chrysler files for
bankruptcy
October 2014-Fiat completes acquisition of
Chrysler
Jeep Life
Vision- “Our vision is to build cars and trucks people want to buy, will enjoy driving and will want to buy again.”- Fiat Chrysler Automobiles
Values-Jeep focuses on freedom, capability and adventure through their “Go Anywhere, Do Anything” motto.
Goals-Jeeps 5 year plan includes expanding the model lineup, expanding the number of dealerships, doubling sales by 2018, taking production global, and rolling out new designs.
Analysis of Visions, Values, and Goals
• We believe that Jeep stays true to their values, however their vision isn’t parallel with that of Fiat Chrysler Automobiles.
• Jeeps’ goals are not consistent with their more customer based values.
• Doubling sales by 2018 is a BHAG
Supply Chain Map
Consumers
Dealership
National Distributor
Car Manufacturer
Tier 1: Major Car Component
suppliers
Tier 2: Suppliers furnish the parts
that Tier 1 components require
Tier 3,4,5: Lower tier suppliers
Raw Materials Manufacturer
Porter Analysis
Automotive Industry: ● Jeep● Toyota● Ford● Honda
Suppliers: ● Steel Manufacturer● Tire Manufacturer● Safety Equipment ● Electrical
Components Substitutes:● Bus● Airplanes● Bicycles/Scooters● Walking Potential Entrants:
● New Car Manufacturers
Buyers: ● Dealerships● Government Agencies
Complements:● Gas● Insurance● Repair Service
Force Factors Strength Profit Impact
Bargaining Power of Suppliers
Many suppliers within the industryLow Bargaining Power Low Switching Costs
Low
Bargaining Power of Buyers
High concentration of buyersInability to backwards integrateHigh switching costs
Low
Industry Rivals Diversity of competitorsLow growth rateHigh product differentiation High industry concentration
High
Substitutes Depends on price sensitivity of consumersCan perform similar functions (to an extent) Medium
Complements High availability of mutually beneficial industriesComplement in stronger market positionComplements increase the value of the industry
High
New Entrants High barriers to entry High capital requirements Limited access to distribution channels Low
Profit Assessment
1. Product/Service Quality2. Marketing/ Sales 3. Differentiation4. Strong Brand5. Technology 6. Operations 7. Safety
Key Success Factors- Automobile Industry
Firm Infrastructure: HQ in Toledo, Ohio, Nationwide Dealerships, Customer focused approach Human Resource Management: Training and skills development, Diversification
Technology Development: Eco Diesel Engines, Trail rated, 4X4, Fuel efficiency, Towing Procurement: Chrysler Purchasing, Supply base optimization
Inbound Logistics:
● Product Committee
● Supply Chain Management
● Mopar
Operations:● Some U.S.
Assembly● Powertrain
Operations ● Transmission● Axel
Outbound Logistics:
● Dealer Relations● Distribution
Coordination
Marketing & Sales:
● Jeep Jamboree● Commercials● Word of Mouth● Strong Brand
Recognition
Service:● Accessories ● Dealerships● Warranty
Strength & Importance Assessment Resource/ Capability Importanc
e Strength* Comment
Brand Loyalty 8 8 Over 70 years of legendary heritage
Product/Service Quality 7 4Jeep isn’t recognized to have high HP engines and they don’t last as long as Toyota engines.
Technology 8 7The new line up of eco-diesel engines offer innovative technology, increased efficiency, and lower emissions.
Marketing/Sales 6 8 Jeep Life, Jeep Jamboree, Jeep blog
Operations 7 4 Not as consistent as Toyota
Differentiation 8 8 Jeep offers a unique line up of vehicles
Distribution 2 5 Nationwide Jeep and Toyota dealerships *Compared to Toyota
Superfluous Strengths Key Strengths
Zone of Irrelevance Key Weaknesses
51
1
5
10
10
Rel
ativ
e S
treng
th
Strategic Importance
Consistency of Operations
*Compared to Toyota
Differentiation
Technology
Brand Loyalty
Product/Service Quality
Marketing/Sales
Distribution
Strategic Positioning
• Jeep concentrates on Differentiation • Unique products• Able to increase prices and still maintain a loyal customer
base
• Fiat Chrysler Automobiles are geared more toward mainstream consumers, whereas Jeep targets a niche market. • Adding 6 new factories in Europe, China and Latin America to
further globalize their operations
FIT
Vision, Values, Goals
● The goals, values, and vision are inconsistent with that of Fiat Chrysler Automobiles
Strategic Position● Jeep tries to maintain a
differentiation strategy
Internal● Jeep uses their key
strengths such as, strong brand recognition to leverage themselves above the competition
External● The well established
car industry requires diversification among industry rivals which is how Jeep can remain profitable
THE END