Essay on Chrysler SWOT

Submitted By maduraa
Words: 698
Pages: 3

Chrysler has a very extensive history in the automobile industry. However this does not mean that the company has always done well. Chrysler’s sales were doing well early in the new millennium but began to drop in 2006. Once the sales started to decline Chrysler began operating mainly from money loaned to them by the government. Between GM and Chrysler, the government invested $25 billion, which Chrysler could not pay back. In 2009 loans were greater than the profit which caused Chrysler to file for Chapter 11 Bankruptcy. After making a deal with Fiat for twenty percent of the Chrysler, the company knew that it had to make big changes in order to turn the company around. Since then Chrysler has been working on improving their vehicles, starting with their main sedan the Chrysler 300, or their prize winning minivan which seems to dominate the market. Recently the company has been showing an increase of forty percent for the month of February. This overall grown makes it the 23rd consecutive increase, the highest since the before the 2009 bankruptcy. This success started a few years ago when Chrysler launched their new marketing strategy. ‘Imported from Detroit’ is the new tagline that has been adopted by the company in 2011. This was of course very successful, not necessarily was this success only because of the tagline, but it surely did not hurt. The leading cars on the market are BMW, Audi, and Mercedes. The main quality of these companies that seem to be similar is that they are all imported, actually imported. Once again this is obviously not the main reason why those three companies are doing as well as they are. However it is known that people seem to be attracted to any product that is imported from a different county. Chrysler decided to use this ironic tagline ‘Imported from Detroit’ in order to catch the consumer’s eye and draw them in to buy their vehicles. Chrysler’s marketing plan along with the company itself, just like every other company, has its weaknesses. This new tagline has a main weakness, the competition. This tagline was meant to convey a clear message that a customer does not need to buy a car across seas in order to get the best in luxury. However at the end of the day, the car itself is not actually imported so obviously the sales will not be the same. Chrysler’s main weakness will forever be the greater competition coming from overseas and even the competition of the American brands. We can not forget the competition that is heating up in the American automobile market. As the unemployment rate in the United States began rising, every U.S. car company began using that to their advantage. Chrysler is not the only…