the market, red oceans and blue oceans. This separation is very important to understand and must be discussed in-depth. This will be followed by an introduction to Chrysler Group LLC, which consists of Dodge, Chrysler, Jeep and Fiat. However, there will be a focus on Fiat and Dodge as they have two small compact vehicles that appeal to a niche market. Blue ocean strategy can change where Chrysler Group LLC stands in the automotive industry and make for a much more profitable organization. Red Oceans
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engineering connections. He also began surrounding himself with a group of close collaborators, including Gioacchino Colombo - the man who would eventually design the first Ferrari car after masterminding the Alpha 158s under Ferrari's patronage - and former Fiat technician Luigi Bazzi, a man who would survive into the 1960's as possibly Enzo's longest-standing lieutenant, having originally joined him in 1923. Bazzi had joined Alfa Romeo as long ago as 1922 after a spell in Fiat's experimental department, and
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1- This article is talking about how Fiat, such many other factories, is struggling in Europe’s actual crisis and how the crumbling European economy is affecting companies. Fiat is one of the companies that has been affected, and now has to make changes into how they are working to allow themselves to survive in this economy. That goes from moving their plants into other countries that have cheaper labor, or re-engineering their plants to minimize the steps in manufacturing a car. We see in this
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15 years. All car assemblers relied on local engineering teams to adapt products developed abroad to specific local conditions such as bad road conditions and usage (which required more robust suspensions), climate differences (asking for changes in materials), ethanol fuel, lower consumer income (demanding cheaper components and less accessories), consumer tastes and so on. 4 The strategy of manufacturing for the local market has not required significant technological activity. The
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INTRODUCTION Otoyol Motor Company (OMC) was founded in 1966, by Koc Holding Corporation (Koc), which is the largest conglomerate in Turkey. They initially imported and distributed completely built up vehicles from Fiat Spat of Torino, Italy. They however had the right to brand the vehicles “Otoyol”. In 1974, Otoyol started to import semi knocked-down vehicle kits, which were then assembled according to blueprints. They then started to source locally manufactured parts to replace the content
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out of a dangerous time. He had to direct the company in a way that increased profits long term, while those around him just wanted to give steeper discounts. He decided that teaming up with Fiat, breaking even in 2010 and finally pulling profit in 2011 was the way to go. Not only did partnering up with Fiat help in a crisis situation, it enabled him to manage for a competitive advantage, by marketing a smaller, sportier Italian car, he was able to fulfill a niche in the market that was previously
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and Chrysler in 1998. It was in 2007 that Damiler sold Chrysler to Cerbus Capital Management. After filing for Chapter 11 bankruptcy, Chrysler Group LLC, formed in 2009 to establish a global strategic alliance with Fiat S.p.A., produces Chrysler, Jeep, Dodge, Ram, Mopar, SRT, and Fiat vehicles and products. With the resources, technology, and worldwide distribution network required to compete on a global scale, the alliance builds on Chrysler Group’s culture of innovation, first established by Walter
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2009, under section 363 of chapter 11 of the bankruptcy code. The company included its 24 subsidiaries in the filing. In order to remain viable and as a condition of the bankruptcy filing, Chrysler announced that it would form an alliance with Fiat SpA. Fiat was scheduled to receive a 20% stake in the company and it would increase to 35% over time. The Voluntary Employees Benefit Association would secure a 55% stake in the company once it emerged from bankruptcy. The United States Treasury would also
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RUSIA : A HUGE EMERGING CAR MARKET ISOLATED FROM OIL CRISIS High oil prices are causing pain for carmakers in America as people there are sacrificing their fancy for pick up trucks and sport-utility vehicles for more frugal small vehicles. In May 2008, General Motors announced a 30 percent fall in car sales, compared with a year earlier; Ford posted a 19 percent drop, and sales of its F-150 pick up fell behind Toyota’s Camry and Corolla for the first time. But far in Russia, the high oil price is
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to take drastic measures in order to pull Chrysler out of its downward spiral. In trying to improve the PE fit he held a dozen interviews with Chrysler executives to promote them to a management position. “Sources who have worked for Marchionne at Fiat say he swept out many executives when he took over that company in 2004 and even fired some managers during meetings” (Kiley, 2009). He felt his old management team CVF provides a practical way for managers to understand, measure, and change organizational
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