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Comptetitive Advantage of Fiat

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Comptetitive Advantage of Fiat
Competitive Advantage
Experience: Fiat has a lot of experience in automotive sector; the brand was founded in 1899. They can take precautions to problems easier and predict the future of the sector more accurate.
Style: Fiat’s design team possesses a great strength for them. Fiat always captures some of the best, the most famous designers. Their best performing segment is small cars segment and some of their cars, like Fiat 500 has a strong evocative power of 60’s. Also, Fiat has a control (almost 60% of the shares) over the legendary Ferrari which is a huge competitive advantage itself.
Innovativeness: Fiat is a very innovative brand, they can adapt to industry changes very well. For example, their Alfa Romeo Mito is a prototype of the brand’s future sport style based on an optimized power-to-weight ratio. Also, Fiat 500C with electrically controlled soft top is a very innovative car. Their innovative products enable Fiat to gain competitive advantage among its competitors and help Fiat to differentiate its products.
Distribution Network: Fiat has a very well organized distribution network spread around the whole world.
Environmentalist: Fiat is the pioneer carmaker that has responded most effectively to the need to limit impact that transport has on the environment. Fiat is the leader brand for the production of compact cars, the most environment-friendly cars, like Fiat 500. R&D center of Fiat managed to reduce emission to a minimum percentage.

All of those advantages are sustainable and well working. But Fiat needs to continue to improve its quality. Fiat cars were not considered as the best cars in the world. But since the early 2000’s, Fiat improved its quality dramatically. Yet, Fiat needs to continue to improve its quality if they want to be considered as a high quality car producer. If they can increase their quality, their value would increase as well. Since they have control over legendary Ferrari and Maserati, the luxury sports cars, Fiat

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