PRESENTED BY:M.TALHA MUNIRQAZI ATTA UR REHMANGHULAM MUHAIUDIN

HISTORY:• Company was created in 1963 by Ferruccio Lamborghini.

• There objective was to produce a refined touring car to compete with the rivalry established company like Ferrari.

• There first model was released in mid 1960 and were noted for there power, refinement and comfort.

• Lamborghini gained wide acclaim in 1966 form the Miura sports coupé company.

• Lamborghini grew rapidly during its first ten years.

VISION AND MOTTO:“Lamborghini creates sports cars that are unparalleled in terms of PERFORMANCE and EXTREME DESIGN with a TOUCH OF PROVOCATION for the DISCERNING CUSTOMER who wishes to STAND OUT wherever he goes.”

Always DifferentAlways

Lamborghini.

FACTS ABOUT LAMBORGHINI:• LAMBORGHINI CARS WERE A RESULT OF A TRACTOR

COMPANY OWNER BEING INSULTED BY THE FOUNDER OF FERRARI

• The creator of Lamborghini originally owned a tractor company.

• Lamborghini produced tractors from surplus military hardware.  He decided to get into making cars as a result of frustrations he had with a Ferrari he had purchased which ultimately resulted in him being insulted by the founder of the famed Ferrari brand car company.

• Having always been interested in car engines, during World War II, Ferruccio Lamborghini served with the Air Force mechanics corps and became known as a wizard at mechanical improvisation and fixing engines.

PROBLEMS FACED BY LAMBORGHINI:

• Lamborghini first faced was hit hard by the oil embargo and by the crisis created by the worldwide recession in 1973.

• Then Company was bankrupt in 1978 and was placed in the receivership of brothers Jean-Claude and Patrick Mimran in 1980.

• 1987-93: The Chrysler Era starts.• 1994-98: Indonesian/Malaysian Ownership Period begins.

• 1998 and Beyond: Germans in Charge.

Porter’s Five Forces:• Intensity of existing rivalry: This is usually the most

important determination of competitive forces. It gauges the level of competition between rivals that compete directly on prices and quality.

• Threat of substitutes: The availability of substitute products increases the chances that a business will lose customers; thus, substitution risk lowers profitability.

• Threat of new competitors: New competitors are often drawn to an industry because of the opportunity to make profits. When new competitors enter markets, they become rivals to existing market participants, which tends to lower the profitability of all market participants. An increase in competition lowers profits with all else staying the same.

• Bargaining power of suppliers :The more pressure suppliers can exert on a company, the more bargaining power they have over that company. Bargaining power generally increases profitability for the party that exerts it.

• Bargaining power of customers: The more pressure customers can exert on a company, the more bargaining power they have over that company. Bargaining power generally increases profitability for the party that exerts it.

TOP RIVALRY COMPETITERS:

• FERRARI• ASTON MARTIN• PORSCHE

FERRARI:• The rivalry between Ferrari and Lamborghini is old, and both

companies are throne of the ultimate Italian exotic. While Ferrari has had a historic association with motorsport, Lamborghini has kept its involvement in racing to a minimum. The typical Ferrari owner is an older, successful professional, who has earned the right to own one.

• Unique sports car destined to represent the excellence of Italian cars, whether on road, or on the racing circuit.

ASTON MARTIN:•  Aston Martin is a British motoring icon, one of few performance

marques that has managed to keep up with the times and stay competent in the face of rising competition from mainland Europe, America, and Japan. The involvement in motorsport have helped the brand to grow.

• A strong, independent British brand which combines the three elements of power, beauty and soul.

PORSCHE:• The first Porsches evolved from the Volkswagen and this has

given the brand a sense of accessibility that many other high-end sports car manufacturers lack. The brand is famed for pushing the limits of engineering excellence and its active involvement in motorsport.

• High performance vehicles with exceptional driving dynamics, that also possess outstanding everyday practically.

COMPETITIVE STRATEGY:

•  Performance of the company should be improved.• Examine the likely effects of future changes within a company.

• Departments are aligned and processes the acquisition for there goal.

• Determine how best to implement a proposed strategy.

• New products and model lines are introduced to the brand's customer’s and brought to the market and saw an increased productivity for the brand.

• Classic engineering and precision manufacturing.

SALE RESULTS:

• 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 2011 Lamborghini produced 1,711 vehicles.

SALE RATINGS:

7 elements of company:• Strategy: The plan devised to maintain and build competitive

advantage over the competition.• Structure: The way the organization is structured and who

reports to whom.• Systems: The daily activities and procedures that staff

members engage in to get the job done.• Shared Values: These are the core values of the company

that are evidenced in the corporate culture and the general work ethic.

• Style: The style of leadership adopted.• Staff: The employees and their general capabilities.• Skills: The actual skills and competencies of the employees

working for the company.

STRUCTURE OF COMPANY:• The company has very strong value.• Knowledge sharing and innovation.• Together with the need to take into consideration the interests

of all legitimate stakeholders in company activities, strengthen the importance of clearly defining the values and responsibilities.

• Company recognizes, accepts, shares and undertakes, contributing to build a way of doing business which is better for all, collaborators, directors and stakeholder.

• The management supports it employees very much.• They have a knowledge management system where best

talents are identified and encouraged.• The company commits to offer equal working and promotion

opportunity to all staff.

SWOT ANALYSIS: STRENGTHS:• It is specially famous for its exquisite design and its

irresistible looks worldwide.• It is highly appreciated and demanded by superior rich and

famous people who desired to have a super sports car.

STRENGTHS:• 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

and 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.

OPPERTUNITIES:• 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 was exceeded for supply.

THREATS:

• The threat is custom modifiers who have the regional presence & ability to make a car to exact taste of the buyer.

• Government policies against high fuel consumption.

• Intense competition in the niche segment from other premium brands.

More products:• Lamborghini has been doing a lot to keep the company

standing out from the various competitors and with the financial help of Audi they can do so.

• Lamborghini would want to show a little skill in the two-wheel department as well.

BRAND merchandizing:• Lamborghini licenses its brand to manufacturers that produce a variety of Lamborghini-branded consumer goods including scale models, clothing, accessories, bags and electronics.

RECOMMENDATIONS AND PERSONAL ANALYSIS:• In my opinion the company should work on low price and low oil consumption cars for lower class.

• The company should create maintenance and repairable shops in different zones.