Chrysler Swot Analysis

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Chrysler

S.W.O.T Analysis

Problem: How can Chrysler return to the prosperity they had once achieved and convince consumers to purchase their vehicles again?

Strengths

- New owner Cerberus allows Chrysler to make quicker decisions because they are a private company.- Have a goal to give a return to its investors.- Have successful divisions in Dodge and Jeep.- At Chrysler there in now an emphasis on working fast.- They realize that there is a major problem with the company and are doing everything they can to fix it.- Now have a new Interior Design Studio which was used on the 2009 Dodge Ram.- Are starting to study customer preferences early to limit changes in the design cycle.- Has collaborated with Tata Motors Limited of India. Their all-electric Ace mini truck will be sold through Chryslers Global Electric Motorcars division. - Private ownership means they don't have the statutory requirements of a public company.

Weaknesses

- Poor relationship with dealers, suppliers and the American consumer.- CEO Bob Nardelli has very little experience in the automotive industry.- Chrysler has operational problems and high costs.- Last year they stopped production on the Neon (their best known small car).- Are behind in R&D and announced they would be introducing an electric vehicle in three to five years when most of their competition will have them sooner.- Being a private company makes it harder to go to capital markets for money.- Under past ownership they used to build vehicles that dealers didn’t want, didn’t order and couldn’t sell resulting in a time consuming mess that needs to be cleaned up.- After 8 years of foreign ownership Chrysler has been stripped of traditional corporate functions including human resources, legal and finance that were all run from Germany.

Opportunities

- Demand for small cars is rapidly increasing.- Consumers are starting to become interested in buying alternative fuel sources.- China’s Cherry Automobile Co. is developing a subcompact car that Chrysler is considering selling under its brand.- Foreign automakers looking to create a larger presence in the U.S. buy buying valuable pieces of Chrysler.

Threats

- U.S economy is struggling and consumers aren’t spending as much money as they used to.- There is a rapid decline in sales of trucks, pick ups and minivans as consumers tend to buy more fuel-efficient vehicles.- Oil and gas are expensive and prices continue to rise.- People want smaller cars and Chrysler is not known for making them.- Chrysler has no significant international operations.

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