There is a huge capital outlay that is involved while setting up an automobile firm but at the same time even if there is someone who is having the financial muscle power to enter into the market; this is difficult as there is an entry barrier in terms of the brand image that they have created for themselves. Fiat has got a good brand name and that is one of the major strengths that they have. The range of offerings that they have is good enough and the company has made sure that they have diversified into only those segments that are risk free (Kotler. 2009). One another strength that they have in comparison with its competitors are that they have been customer centric in their actions and this has resulted in them getting a loyal customer base and the communication that they have been sending to the customers have been received in a positive manner. They have been looked at as an innovator in terms of the designs and this is possible only because of the fact that they have a design facility in Australia and that has given an edge to them over others. This has in fact increased the satisfaction of the customers and has resulted in increase in sales. They have also made sure that they expanded all over Australia and this has solved one of the biggest problems that they had in past in terms of convenience of the customers.
One of the main weaknesses that they have had is that as compared to their competitors they could not slash the prices and match them on prices. This is because of the fact that they don’t have the economies of operation and the scale to match their competitors so that they can match the prices of their competitors. They have managed to overcome these factors by means of having a different positioning by offering their customers with value for money which has got them a favorable position in the minds of the customers (Christina, 2008). They have not been able to get the same acceptability in other nations as they have not been a favorite in many countries where there is a presence of other brands. They have not managed to piggyback on reputation that they have in Australia when they have migrated to other nations which are nearby.