In coming years, we’ll be seeing some major make-overs in Ferrari supply and demand strategies as Marchionne is determined to take Ferrari to new heights
The supply and demand chain is the main factor to run any business and manipulating the relationship between supply and demand is the main concern of business heads. Definitely, it applies to auto industry as well and directly affect the companies like Ferrari. Enzo Ferrari, the owner of company wants to increase the sales volume as he needed resources and funds for their sports and racing division.
The latest model produced under Enzo Ferrari’s supervision is the F40 and he changed his strategy to increase the supply for production and meeting the demand of F40 in the market.
Luca di Montezemolo took over after Enzo and once again started reconsidering the supply and demand process and figured out that Ferrari could sell 400 F50s when they are producing 300 plus so he decided to expand the market and keep tightening the supply to increase the demand and profitability.
It’s been working for Ferrari exclusively and Ferrari has announced a record earnings in the first half of 2014 by up to 14.5 per cent compare to the same period last year. The strategy started by Enzo Ferrari and further strengthen by Montezemolo is working well but they still have their eyes on different approaches.
The chief and chairman of Fiat-Chrysler and now for Ferrari, Sergio Marchionne is looking forward to increase the production and supply by 10,000 units to meet the demand but current management is insisting to restrict the demand at 7000 units per year.
It is very first time since Marchionne takes over and pondering the changes to escort the new millennium. What other alterations he has to make to speed up the Prancing Horse Cars division is still to be revealed. Let’s wait and see how Ferrari’s financial records and graphs boost up during his stay at Ferrari, as he has a brilliant track record with Chrysler and Fiat.