Nicole Aderholt Richard Clark Truesdale Kimbrell Kevin Leong TEAM WILLY “GO ANYWHERE, DO ANYTHING”

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Presentation transcript:

Nicole Aderholt Richard Clark Truesdale Kimbrell Kevin 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 Introduction of Cherokee 1987-Chrysler buys AMC 2009-Chrysler files for bankruptcy October 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

ForceFactorsStrengthProfit Impact Bargaining Power of Suppliers Many suppliers within the industry Low Bargaining Power Low Switching Costs Low Bargaining Power of Buyers High concentration of buyers Inability to backwards integrate High switching costs Low Industry Rivals Diversity of competitors Low growth rate High product differentiation High industry concentration High Substitutes Depends on price sensitivity of consumers Can perform similar functions (to an extent) Medium Complements High availability of mutually beneficial industries Complement in stronger market position Complements 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 Quality 2.Marketing/ Sales 3.Differentiation 4.Strong Brand 5.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/ CapabilityImportanceStrength*Comment Brand Loyalty 88Over 70 years of legendary heritage Product/Service Quality 74 Jeep isn’t recognized to have high HP engines and they don’t last as long as Toyota engines. Technology87 The new line up of eco-diesel engines offer innovative technology, increased efficiency, and lower emissions. Marketing/Sales68 Jeep Life, Jeep Jamboree, Jeep blog Operations74 Not as consistent as Toyota Differentiation88 Jeep offers a unique line up of vehicles Distribution25 Nationwide Jeep and Toyota dealerships *Compared to Toyota

Superfluous StrengthsKey Strengths Zone of IrrelevanceKey Weaknesses Relative Strength 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

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