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Florian GUIDAT

on 8 January 2014

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Transcript of FERRARI CAR

A closer look at how a Ferrari supercar is manufactured and distributed in what is a multi-million dollar industry.
The Brand
Name: Scuderia Ferrari (1929) and Ferrari s.p.A (1947)
Founded in 1947 by Enzo Ferrari (historical 1929 but Scuderia Ferrari did not produce cars, the company sponsored drivers and manufactured race cars)
Headquarter: Maranello (near Modena), Italy
Owners: Fiat Group (90%), Piero Lardi Ferrari (10%)
Chairman: Luca Di Montezemolo
Type: Joint-stock company
Product: Supercars
Where do I come from ?
A town in northern Italy, near Bologna, Maranello has been home to Ferrari since the 1940s.
With more than 250,000 sq metres, the factory has 45 buildings house and more than 3,000 workers.
The assembly lines, engine building, paint area, mechanical machining area (secondary services) the management and the R&D (quaternary activities) are in Maranello.
The bodywork and chassis (secondary services) are constructed in the
Carrozzeria Scaglietti
in Modena, where Ferrari was created.
Employees: 2695 (2011).
Employees have excellent work conditions and they are well-paid. Ferrari knows that they are the best in their sector and wants to keep talents. Recently, there is no information concerning a conflict between workers and the headquarters of Ferrari.
Most of the suppliers come from Europe. They are the best in their sector, Ferrari chooses the best quality, not the best prices. This is the example of the Ferrari 458:
Who build me ?
What am I made of ?
Bodywork: aluminium, carbon fiber, titanium
Engine: gold, aluminium, rubber
Seats: leather
Dashboard: leather, wood, plastic
Glass (headlamps, rear-view mirrors)
Electronic system: metal, gold
Sales in 2012
Revenues: 2.433 billion euro
Cars delivered: 7,318
Trading profit: 350 million euro
Net profit: 244 million euro
Industrial net cash position: over one billion euro
Record sales in USA, China, Germany and Great Britain.
Ferrari dealers (tertiary activities) in the world:
Ferrari branded-products
Fragrances Belts
Glasses Gloves
Shoes Umbrellas
Keyrings Scarves
Caps Jewellery
Ties Pins
Clothes Toys
Computers Surf Boards
Watches Bages

It represents 30% of Ferrari's revenues.
How will I end up ?
Recycling Car parts for others Ferrari's cars
Incineration (for non-recyclable elements)
Art sculpture
This Crashed Ferrari Dino sold as art sculpture for US $ 250 000.
Company’s strategy for marketing their product
Involvement in auto racing, especially in the highest class of single-seater auto racing sanctioned by the Fédération Internationale de l'Automobile (FIA): Formula 1. Ferrari owns the records by constructor with 15 titles and by engine with also 15 titles and it is the oldest team of this sport.
Ferrari does not need advertise, it is one of the most iconic and well-known automotive brands in the world and Formula 1 presents Ferrari with a unique platform to market its brand.
"Ferrari World"
in Abu Dhabi, UAE (amusement park).
Collaboration with the CONI (National Italian Olympic Commitee).
Environmental impact
Ferrari invested 40 millions euros to reduce the environmental impact of Ferrari’s manufacturing processes.
Between 2008 and 2012 CO2 emissions during the manufacturing processes dropped by 40%.

Member of the UE and the G8, it is a developed country.
The perfection for the automobile sector (Ferrari, Maserati, Lamborghini, Fiat, Alpha Romeo, etc).
The industrial sector (which included the automobile sector) represents 32% of the GDP
"Ferrari World" in Abu Dhabi (UAE) which holds the record of the fastest Roller Coaster (Formula Rossa, 270 Km/h).
Reasons to buy a Ferrari
Cars first registered before 1977 are eligible for free road tax.
Now is the best time to buy the car of your dreams before it becomes too expensive.
Ownership of a Ferrari will give you access to an exclusive club and the social events that go with it.
The machine will delight your senses every time you use it.

Investing in Ferraris can prove genuinely profitable. Well-chosen models increase in value faster than any other car, and demand for them greatly outstrips supply at international classic car auctions:
The cars are sold to developed countries (USA, Italy, Germany) or developing countries where a few part of the population are extremely rich (UAE, Greater China). They are mainly in Nothern hemisphere (except for South America, Australia and New-Zealand).
The cars are exported by planes or container ships to the countries and by trucks to the local dealers.
All raw materials (primary activities) are coming from Italy. The objective is to have the excellence of the raw materials. Ferrari insists on using the best of its native country’s fabrics.
Cultural homogenization or cultural imperialism ?
There is no issue of cultural imperialism or homogenization:
A Ferrari car is not affordable by everybody so it cannot have a huge impact on the society.
There are a lot of others manufacturers who build supercars and even if Ferrari is, for me, the most famous, there is a huge competition on this market.

Finally, Ferrari is an atypical industry model. Despite its limited production, is one of the world's most prestigious brands. It is this scarcity that Ferrari has conferred its prestige and notoriety.
Michael Schumacher was one of the best Formula 1 driver. He wons 7 World Champion Titles (a record) of which 5 consecutive (2000-2004) with Ferrari.
Full transcript