Feasibility and SWOT of Pirelli

Feasibility Analysis

Name

Affiliation

SWOT of Pirelli

Strengths

The company as established business assets

The company well set man-power needed

The company is situated in areas with readily available raw materials Weaknesses

The company has a weak market share

The industry has many competitors

Opportunities

More and more demand for tire products is increasing

There is room to profitability and increase of market share Threats

Market saturation of low quality and fake products

Source : (Sasikumar, Kannan & Haq, 2010).

Feasibility Analysis

Despite the fact that Pirelli is on the eve of running to lose while in the industry due to the fact that it expanded it market by getting assets of Armstrong Tire as making the bid to Continental AG, the company has room to improve its business potential and to foster in to profitable business in the future. The reason behind is that the company has strengths as the bigger asset base as well as the reliable and qualified personnel who can steer the company forward in the future. Weak market share it currently has can be improved by venturing it equity share in other potential market. This can be so if the company establishes a better market entry strategies. The threats that it facing, can be curbed by investing into market that have well-established laws that prevent sale of fake products.

References

Sasikumar, P., Kannan, G., & Haq, A. N. (2010). A multi-echelon reverse logistics network design for product recovery—a case of truck tire remanufacturing. The International Journal of Advanced Manufacturing Technology, 49(9-12), 1223-1234.