Detailed SWOT Analysis of Ferrari – Detail Explanation

Updated on: Sep 27, 2021
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In this blog, we’ll read about the SWOT analysis of Ferrari, the most recognizable brand Ferrari is exclusive or popular worldwide. Ferrari specializes in manufacturing automobiles but their store also sells branded clothes, fans, watches, bicycles, and accessories and sport premium racing cars. Their innovation, technology, and design are unique. Its main focus is on cost efficiencies and aims to achieve profitable growth. Ferrari is an Italian car company founded by ENZO FERRARI in 1939. Ferrari is one of the world’s most commendable luxury sports car automakers. The first Ferrari – the badged car was produced in 1947 after the second world war by Enzo Ferrari.

Enzo Ferrari has died at the age of 90 years. Ferrari symbol prancing horse and its vibrant red colour as per the logo that is black prancing stallion on a yellow background. The red colour is part of the tradition. Ferrari now is an independent public company EXOR NV having the largest single shareholder. In 1969 fiat took 50% of the stake in his company.

To better understand the reason behind Ferrari continuous growth, let’s go through the SWOT Analysis of Ferrari

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About Ferrari

Ferrari Logo | Swot analysis of Ferrari | IIDE

Ferrari is an Italian company that produces luxury sports cars that are generally seen as a symbol of speed, luxury. Ferrari has known brand equity. Ferrari has a tradition of producing red-coloured cars. Ferrari was built at the 165000 square meter Maranello factory. 

In 2014  Ferrari has rated the world most powerful brand for finance. Ferrari not only sells sports cars but other appliances like men’s T-shirts, shoes, watches, backpacks, kids wear, jackets and many more.

And for more detail about the product you can visits 

 So let start to analyse the Ferrari-


SWOT Analysis of Ferrari

SWOT Analysis is a technique of strategic planning used by organisations to identify their strengths, weaknesses, opportunities, and strengths revolving around project planning and business competition. So, let’s start with the strengths of Ferrari:


1. Strengths of Ferrari

Strength is the quality that distinguishes from the other competitors given below –

  • Strong Research and development- Spend a large amount of cost on research and development of Ferrari. Its main focus is on innovation or technology which makes it different from the other competitors. 

  • Specialities of automobiles- Ferrari having the best features like electric-powered driving, maximum speed, horsepower, rear-wheel drive, hybridization, traction, seating body style, clearance, exclusive design.

  • High level of customer satisfaction- Ferrari is an automatic car that provides world-class safety measures with fashionable design, according to the customer preference and tries to maintain a strong relationship with the existing customer.

  • High market share – Has it has strong brand equity so more investors want to invest in Ferrari. Share of Ferrari is always at its peak. Investors always invest in those brands whose stocks, bonds, mutual funds are always high.

  • Goodwill- Goodwill is most important for the company to maintain as long as possible if goodwill affects the whole company suffer. Quality of the product, after the sales service like guarantee, warranty that helps to maintain the goodwill. 


2. Weaknesses of Ferrari

Ferrari | Swot analysis of Ferrari | IIDE

Weakness is the element that a company need to improve in future. So let’s take a look at some points given below-

  • Luxury- Ferrari generally produces a  luxury product that the low man or common man can’t purchase like Ferrari Roma, Ferrari 812, Ferrari F8 Tributo, Ferrari Portofino. but the Ferrari having a high-quality product that is not comparable to other brand products.

  • Competition- In the  present market condition competition level increase in comparison to Ferrari there are many companies like BWW, Lamborghini, Audi, Mercedes Benz, Porsche, Jaguar, Aston Martin, Bentley

  • Fuel efficiency- Mostly the Ferrari car need fuel like petrol, diesel but the demand for petrol increase supply decrease this is the most upcoming weakness or challenge that Ferrari gets in future.

  • Culture- As India is known for its culture it is very difficult to integrate the firm according to the culture. If Ferrari needs to expand its business in India he has to understand the customer preference, taste, culture.

  • Supply chain and distribution- As Ferrari cover, the world but supply and distribution are very finite. They have made an unbreakable supply chain, at the centre or middle of the country made stores or warehouse so it is easy for the distributor to available the product at the right place at the right time. We don’t often see Farreri on the road only the very few can purchase and it is costly too.

  • Another product  Ferrari is specialed in an automobile but he has to focus on the other product like cloth, watches, bag, jacket, cap, belt etc.


3. Opportunities of Ferrari

Opportunities are potential areas for a company to focus on to improve results, increase sales, and ultimately profit. So let see what type of opportunities are there –

  • Market Expansion- More expansion for any company means more revenue. Without the revenue, the company can not expand its business. The greater its expansion in developing economies, the better for the brand especially in India need to expand more. India is a developing country.

  • New taxation policy- As the state changes the rules of taxation, providing the facilities of import or export of goods, raw materials etc and develop the economy. Every country wants to develop their own country.

  • Technological advancement- Demand for a new innovated product is increased due to the entering of new and innovative automobiles that the Ferrari have. It also focused on the environment and health it turns its spotlight in manufacturing battery operated ride cars.

  • Customer expansion- Ferrari should expand its customer by producing products according to their need, wants. Product is categorised by price lower-middle-class people prefer to purchase good at cheap price. Through digital marketing, they can advertise and expand their customer.


4. Threats of Ferrari

Ferrari Logo on the car | Swot analysis of Ferrari | IIDE

Threats are the environmental factors that can forbid a company’s expansion the following are the points given below-

  • Customer expectation– Increasing customer expectations might not match which causes hurdles for the growth of the economy. As customer perception change from time to time their choice is different according to the age group like – teen (13-19) year, adult (20-39) years, middle age adult (40-59) year, senior adult 60 plus.

  • Custom policies- Different countries have different policies we have to follow their rules for the growth of the company. Tariffs and taxes are imposed by the government to restrict the import, the rate of taxes differs from country to country.

  • Demand and supply – It is a very difficult task to maintain the demand and supply in the market. The market always has a sudden flustration in demand and supply so we have to mentally and physically prepare.

  • Shortage of skills-  It is not beneficial that every country has skilled employees.

The worker should work efficiently and effectively and the proper utilization of raw material A firm needs to find out talented and hard workers employ so they can also help to expand the company.


Market Strategies

  • Launching at least a new model every year along with annually designing and launching a limited edition so that curiosity is maintained in the customer mind.
  • Purchase high-quality raw materials to make high-quality finished products.
  •  Innovated technology with cost-efficiency.
  • Selective customer audience

Ferrari not only produce cars but also produce eyewear, pens, pencils, electronic goods, perfume, clothing, high tech bicycles, watches, cell phones, and laptop computers.

 As I above told that Ferrari is a luxury brand that produces watches having different price ranges and is MADE IN ITALY. Ferrari watch brand is modern and fashionable looking that attract all the teenagers and the youth.

After the detailed analysis of Ferrari. Let go through a quick summary in the next section.


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To summarize Ferrari has been around for more than a century and is a powerful brand that deserves its discussion and attention. I hope you were able to gain some vision into how Ferrari was able to succeed in this dynamic industry. 

Ferrari has maintained its product quality and brand image efficiently over many years and earns brand loyalty through premium merchandise. It opens its stores at places where targeted audiences are found. 

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Aditya Shastri

Lead Trainer & Head of Learning & Development at IIDE

Leads the Learning & Development segment at IIDE. He is a Content Marketing Expert and has trained 6000+ students and working professionals on various topics of Digital Marketing. He has been a guest speaker at prominent colleges in India including IIMs......[Read full bio]


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