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LAMBORGHINI

INDEX

• Introduction• Industry analysis• Competitors• SWOT analysis

LAMBORGHINI• Type – Private

• Industry – Automobile Manufacturing

• Ownership – Audi AG

• Founded – Sant’ Agata Bolognese, Italy as Automobili Ferruccio Lamborghini S.p.a

• Founder – Ferrucio Lamborghini

• Head Quarters – Sant’ Agata Bolognese, Italy

• Area Served – Worldwide

• Key people – Stephan Winkelmann (President)

• PRESIDENT & CEO : STEPHAN WINKELMANN

• Parent Company – Audi AG

• Category – Sports Cars & Super Cars

• Sector – Automobile

• Tagline/Slogan – Feels Italian wherever you are (But I’m two German sports cars)

• USP – Superior Handling & Performance.

HISTORY• Ferrucio Lamborghini, was also the founder of Lamborghini Trattori

(which was one of the pioneer manufacturers of agricultural equipments).

• He founded Automobili Lamborghini to make high-end sports car in the year 1963 after being dismissed by Enzo Ferrari.

HISTORY (CONT.)• The company entered bankruptcy in 1978, and the Italian courts took control.• 1987, Chrysler Corporation took control of Nuova Automobili Ferruccio Lamborghini S.P.A., paying

US $ 25.2 million and again sold it to Malaysian Investment group “Mycom Setdco” and later to Indonesian group “V” power corporation”.

• 1998–2007 - Reorganization, Murciélago, and Gallardo

• The new chairman of Volkswagen AG, Ferdinand Piëch, grandson of Volkswagen's founder, Ferdinand Porsche, went on a buying spree through 1998, purchasing Bentley, Bugatti and Lamborghini. Volkswagen subsidiary AUDI AG acquired Lamborghini in September 1998 for around US $ 110 million.

LOGO• The world of bull fighting has always been a keypart of Lamborghini’s Identity.

• The logo has been derived from Feruccio Lamborghini’s love for bull fights. For Instance, Gallardo is named after a famous breed of fighting bull.

• Most of the models have been named after famous stud bulls.

• The name stands for reliability, technically excellence and quality.

COMPETITORS :

Products :

• SUV -

• Sedan -

SUPER CARS

5 Force Model

1. THREAT OF NEW ENTRANTS (LOW)

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3) BARGAINING POWER OF BUYERS (MODERATELY HIGH) The buyers also are a significant portion of the industries

revenue. If they can not keep their buyers happy then they risk losing them to their competitors.

The reasons why the power is not completely high is that the buyers are not large and few in number. Finally customers are willing to pay premium for the brand.

The threat of new entrants is very low in the automobile industry. The industry is very mature and it has successfully reached economies of scale.

Barriers to Entry (High) Capital Requirement Brand equity Knowledge (Technology) Product differentiation. Large economies of scale

2. SUPPLIER BARGAINING POWER (LOW)

The automotive industry is composed of powerful buyers who are generally able to dictate terms to their suppliers. Although supplier products are vital to production, their transactional power over Lamborghini is usually low.

Competition between suppliers is high as a contract with Lamborghini represents a significant opportunity.

Lamborghini make their own engine parts and partnership by large suppliers (such as AUDI ), which provide core components, could reduce Lamborghini potential to exercise bargaining power.

3. BARGAINING POWER OF BUYERS (MODERATELY HIGH)

The buyers also are a significant portion of the industries revenue. If they can not keep their buyers happy then they risk losing them to their competitors.

The reasons why the power is not completely high is that the buyers are not large and few in number. Finally customers are willing to pay premium for the brand.

4. THE THREAT OF SUBSTITUTES (MEDIUM)

In these areas, the other substitutes available (e.g., walking, mass transit, bicycles.) can be less costly than automobiles and thus alternative modes of transportation are often preferred.

However, substitute do not offer the same quality as Lamborghini.

Lamborghini has been able to produce equal performance and prestige yet at more affordable prices

5) INTENSITY OF RIVALRY AMONG COMPETITORS (HIGH)

The level of rivalry in the industry is extremely high, luxury Sports car industry produces a naturally competitive environment.

The industry brings together global giants (Ferrari, Lamborghini, Mercedes Benz SL-Class, and Porsche ).

SWOT ANALYSISSTRENGTH :•It is specially famous for its exquisite design and its irresistible looks worldwide.

STRENGTH :•It is highly appreciated and demanded by superior rich and famous people who desired to have a super sports car.

For example : Multi millionaire, Billionaire, World Reknowned Artists, Sultans, Reknowned Footballers, etc.

STRENGTH :•It has been known for superior handling & high speed performance.

•Adds a value to your lifestyle and profile with utmost satisfaction.

•Innovating new and exclusive designs/models in every 2 years with more high end concepts.

•Beast with a beauty.

•Established the standard of a mid-rear engine for sports cars & super sports cars.

•Brand name.

Weakness•Fuel consumption is too high.

•Maintenance charge is too high and specific repair regional shops.

•Price is too high, and not affordable by everyone.

OPPORTUNITY• To increase customer relations events & activities which will showcase and enhance

the ownership experience.

• To increase the global reach as currently it has been restricted to a few regions.

• To do away with the regional quota system & sell on the basis of demand, it was seen that when they launched their models in India – the demand far exceeded the supply.

THREATS• The threat is the niche regional players & custom modifiers who have the regional

presence & ability to make a car to exact taste of the buyer.

• Government policies against high fuel consumption.

SALES By sales, the most important markets in 2004 for Lamborghini's sports cars are the U.S. (41%), Germany (13%), Great Britain (9%) and Japan (8%). Prior to the launch of the Gallardo in 2003, Lamborghini produced approximately 400 vehicles per year; in 2014 Lamborghini produced 1,711 vehicles