Introducing Alfa Romeo into Canada
Introducing Alfa Romeo into Canada

P720 – Strategic Management

Table of Contents Executive Summary 2 Company Background/History 3 Statement of Problems 3 Analysis 5 Brief History Overview 5 Industry Overview 5 SWOT 6 Porters 5 Forces 7 PEEST 8 VRIO 10 Competitor Overview 12 Alternatives 12 Decision Criteria 14 Implementation 16 Contingency 19 References 21 Exhibits 22

Executive Summary Alfa Romeo, a company steeped in automotive performance history is being evaluated for re-entry into the North American and specifically Canadian consumer market. The company was founded in 1910, and has been producing high performance vehicles to present day. To-date its sales focus has been focused on the European market, with over 90% of units sold in Europe. It was acquired by, then Fiat Group, in 1986 from this acquisition a partnership was brokered between Fiat and Chrysler Motor Company in 1988 for exclusive rights to sell Alfa Romeos through Chrysler dealerships from 1988 to 1995, at which time Alfa Romeo pulled out of the North American market. In 2015, due to the recent partnership between Fiat and Chrysler and the creation of Fiat Chrysler Automotive Group, Alfa Romeo is returning to North America. Three key problems have been identified that must be overcome for Alfa Romeo to be successful in the Canadian market place and North American market overall. The first is to develop strong brand recognition, the second is to achieve market share in the North American and Canadian market specifically, and finally the venture into Canada and North America must prove to be profitable. From the analysis, it is evident that as in Europe the North American and Canadian market is fierce with competition. There are currently many strong contenders in the market such as BMW, Mercedes-Benz, Audi and