Ferrari SWOT Analysis [Update 2022] ❤️

Ferrari SWOT Analysis 2022

This blog will talk more about SWOT analyses of Ferrari The most well-known brand. Ferrari can be considered exclusive and famous all over the world. 

Ferrari is a specialist in the production of cars, but their stores also sell fans, clothing, watches, bicycles as well as accessories, and also sports high-end racing vehicles. Their technological innovation, creativity, and design are distinctive. 

The company’s primary focus is efficiency in costs and the goal is to grow profitably. Ferrari is an Italian car manufacturer that was established with the help of Enzo Ferrari at the time of 1939. 

Ferrari is among the world’s most highly regarded automobile manufacturers that manufacture luxury sports cars. 

Ferrari SWOT Analysis

The first Ferrari badged car – was manufactured in 1947, following the end of two world wars through Enzo Ferrari.

Enzo Ferrari passed away in the year 90. Ferrari is the symbol of prancing horses and its vivid red color according to the logo which is a black stallion that pranced across an orange background. 

The red color is an element in history. Ferrari today is an autonomous public entity EXOR NV has the largest single shareholder. In 1969, Fiat acquired 50 percent of the shares in his company.

To better understand the motive for Ferrari’s ever-growing we will go through the SWOT analysis of Ferrari

SWOT Analysis of Ferrari

SWOT analysis is the process of strategic planning that is used by companies to discover their weaknesses, strengths, opportunities, and weaknesses that are related to planning projects as well as business rivalries. Let’s begin with Ferrari’s strengths. Ferrari:

Strengths In The SWOT Analysis of Ferrari

The quality of strength is what makes us different from our competitors listed below.

❤️ A thriving Research and Development- It is a huge cost in research and development for Ferrari. The main focus of Ferrari is technological innovation, which distinguishes it from other rivals.

❤️ Particularities of cars- Ferrari has the top features such as electric-powered driving with the fastest velocity, horsepower, rear-wheel drive, and traction. It also has hybridization and seating body design clearance, an exclusive design.

❤️ Customer satisfaction is high. High level of customer satisfaction Ferrari is an auto that offers top safety measures with a stylish design in line with the client’s preference. It also tries to keep good relations with the current customer.

❤️ Market share is high – Does it have solid brand equity, so more investors will want to put their money into Ferrari. The share in Ferrari remains at best. Investors invest in companies whose bonds, stocks, and mutual funds are consistently high.

❤️ Goodwill Goodwill Goodwill is crucial for a company to keep for as long as is possible, in the event that goodwill impacts the entire business. Good quality of the product after-sales services like warranty, guarantee that help to maintain goodwill.

Weaknesses In The SWOT Analysis of Ferrari

In the end, weakness is the factor companies must work on in the future. Let’s review some of the issues below.

❤️ Luxury- Ferrari typically produces high-end products that the common or the common man cannot afford such as Ferrari Roma, Ferrari 812, Ferrari F8 Tributo, and Ferrari Portofino. However, the Ferrari has a top-quality product that isn’t like other brands.

❤️ Competition- In the current market conditions, competitiveness is increasing in comparison with Ferrari there are many firms such as BWW, Lamborghini, Audi, Mercedes Benz, Porsche, Jaguar, Aston Martin, Bentley

❤️ Fuel efficiency- Most the Ferrari car requires fuel such as diesel, petrol, and gasoline but it is the need for fuel that will increase and supply, which is the biggest issue or problem that Ferrari will face in the near future.

❤️ Culture- Since India is a country known for its rich culture, it is extremely difficult to incorporate the business in line with its tradition. If Ferrari is looking to expand its operations in India the company must understand the preferences of customers, their tastes and lifestyle, and culture.

❤️ Distribution and supply chain As Ferrari covers, the world, however, supply and distribution is extremely limited. They have built an indestructible supply chain in the middle or central part of the country, they have built warehouses or stores so that it’s simple for the distributor to have the product at the appropriate location at the right time. It is rare to see Farreri, but only a few people can buy it, and it’s expensive too.

❤️ A different product Ferrari is focused on the automobile, but he also has to concentrate on other products like cloth bags, watches jackets, caps, belts, etc.

Opportunities In The SWOT Analysis of Ferrari

Opportunities are a great area for companies to concentrate on in order to increase performance, increase sales, and ultimately, profit. Let’s look at what kind of opportunities are available for you to take advantage of

❤️ Market Expansion- Expanding a business is a sign of more profit. Without revenues, the company is unable to expand its operations. The more expansion it can make in emerging economic zones, the greater the brand particularly in India that it is required to expand further. India is a developing nation.

❤️ New taxation policy for the new year As the state alters the rules for taxation by allowing the export or import of raw materials, goods, and other materials, it will help to develop the economy. Every country is eager to develop its own nation.

❤️ Technology advancement The demand for an innovative product has increased because of the introduction of the latest and most innovative cars that the Ferrari is famous for. In addition, it is focused on the environment and health. it focuses its attention on making battery-operated ride vehicles.

❤️ Customer expansion Ferrari will expand its customer base by offering products that satisfy their requirements, and needs. Products are classified according to the price of lower-middle-class consumers who like to buy goods at a low cost. With the help of online marketing, companies are able to promote and grow their customer base.

Threats In The SWOT Analysis of Ferrari

Risks are environmental issues that could hinder an organization’s expansion. The following are the factors listed below.

❤️ Customer expectation Increased expectations from customers might not be in line, which could create obstacles in the development of the economic system. Because customer perceptions shift frequently, their preferences differ depending on the age group such as teens (13-19) year adults (20-39) years and middle-aged adults (40-59) year and senior adults age 60+.

❤️ Custom policies- Different countries have different regulations and we must adhere to their guidelines for the development of the business. Taxes and tariffs are imposed by the government in order to limit the import of goods, and the amount of taxes varies from one country to another.

❤️ Demand and supply It’s a challenging task to ensure that there is a balance between supply and demand in the market. Markets always have an abrupt increase in supply and demand therefore we must both physically and mentally prepare.

❤️ Skills shortage It’s not beneficial that all countries have skilled workers.

The worker should be able to work effectively and efficiently, and also make the most of the raw materials. A company needs to discover the most skilled and dedicated workers in order to assist to grow the company.

Limitations of SWOT Analysis for Ferrari

While SWOT analysis is a popular tool for strategic planning, SWOT analysis is extensively used to plan strategic strategies However, the analysis has its fair share of drawbacks.

❤️ Certain abilities or aspects of an organization could be both strengths and weak points at the same. This is among the most important limitations in SWOT analyses. For instance, changing environmental regulations could be an opportunity and a threat to the company. However, as well as an opportunity in the sense that it allows the company to compete on the same level or gain an advantage over its competitors if it can develop its products more quickly than its competitors.

❤️ SWOT is not able to show you how to get a competitive edge It is not a strategy to gain a competitive advantage, therefore it should not be considered a solution in and of itself.

❤️ The matrix serves as an initial point of reference for discussions on how suggested strategies might be implemented. It also provided an evaluation window, but it did not provide any implementation plan based on the strategic competitiveness of Ferrari

❤️ It is a static evaluation that analyzes the existing conditions and a small number of potential modifications. When circumstances, capabilities as well as threats, and strategies alter, the dynamic of the competition cannot be analyzed in one single matrix.

❤️ SWOT analysis can make a firm over-emphasize one external or internal element in formulating strategies. There are interrelations among the most important external and internal elements that SWOT cannot reveal, but can be vital in formulating strategies.

Weighted SWOT Analysis of Ferrari

Given the previously identified weaknesses of the SWOT analysis/ matrix, the corporate management has decided to assign an appropriate amount of weightage for every internal strength and weakness of the business. 

They also consider the likeliness of future events happening in the near future, and what the effect can be on the company’s performance.

This is referred to as the Weighted SWOT analysis. It’s better than basic SWOT analysis as using weighted SWOT analysis Ferrari managers are able to focus on the most crucial aspects and ignore the less important ones. 

This also helps solve the problem of a long list which is when organizations create lengthy lists but do not address any of the elements that are considered to be important.

References / Citations & Bibliography

  • M. E. Porter, Competitive Strategy(New York: Free Press, 1980)
  • A. D. Chandler, Strategy and Structure (Cambridge, Mass.: MIT Press, 1962)
  • O. E. Williamson, Markets and Hierarchies(New York: Free Press, 1975);
  • L. Wrigley, Divisional Autonomy and Diversification (Ph.D., Harvard Business School, 1970)
  • R. E. White, Generic Business Strategies, Organizational Context and Performance: An Empirical Investigation, Strategic Management Journal7 (1986)


Based on a study, it’s been conclusive that both companies are actually controlling their own Ferrari marketplace for case solutions over the last four years. 

They compete fiercely with the introduction of new technologies that can cut their costs and improve their existing products or even create new products. 

Both companies have expanded their competitors into different markets by expanding their operations to international markets and establishing production facilities in different locales across Europe in addition to Asia. To boost its sales, the company must focus on expanding its geographic reach. 

This would allow the business to expand its client base and help it maintain its position as a leader within the Ferrari business. 

In addition, the business should alter its products to attract the attention of customers to its product and also to hold an important market position.

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