Ferrari S.p.A. : A case study

Swastik Sinha
7 min readMay 2, 2023

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Ferrari is a name that is synonymous with luxury and high-performance sports cars. Founded in 1947 by Enzo Ferrari, the Italian automaker has built a reputation for producing some of the world’s most desirable and high-performance vehicles.

Let’s delve deeper into the world of Ferrari.

History

Enzo Ferrari had a passion for racing and started his career as a racing driver for Alfa Romeo in the 1920s. He later went on to found Scuderia Ferrari, a racing team that would go on to achieve great success in Formula One racing. In 1947, Enzo Ferrari founded Ferrari S.p.A. to produce road cars, with the first Ferrari car, the 125 S, being produced in that same year.

Source: Top Gear Philippines

Over the years, Ferrari has produced some of the world’s most iconic and recognizable cars, including the Ferrari 250 GTO, the Ferrari F40, and the Ferrari Enzo. Today, Ferrari is a symbol of luxury, prestige, and high-performance engineering.

Production Style

One of the unique things about Ferrari’s production process is that each car is hand-built. Every Ferrari is a work of art, meticulously crafted by a team of skilled artisans and technicians.

The company employs over 3,000 people, many of whom have worked for the company for decades, and each car takes several months to produce.

Source: 5 Minute History

The production process starts with the design phase, where the car’s shape, performance, and features are decided upon. The design is then turned into a clay model, which is used to create a mold for the car’s body. The body is then made out of carbon fiber, which is stronger and lighter than traditional materials.

Once the body is complete, it is sent to the assembly line, where the engine, suspension, and other components are added. Each component is carefully selected and tested to ensure that it meets Ferrari’s high standards for performance and quality.

Innovation and Sustainability

Ferrari has always been at the forefront of automotive innovation, and the company continues to push the boundaries of what is possible in the industry. In recent years, the company has focused on sustainability, introducing hybrid technology to some of its models and working to reduce its carbon footprint.

In 2013, Ferrari introduced its first hybrid car, the LaFerrari, which combined a V12 engine with an electric motor. The car was not only faster than Ferrari’s previous models, but it also emitted fewer emissions and used less fuel.

Source: Top Gear

Since then, Ferrari has continued to work on developing more sustainable technologies for its cars. In 2019, the company introduced the SF90 Stradale, a plug-in hybrid that can travel up to 15.5 miles on electric power alone. The car also features a range of other sustainability features, including regenerative braking and a Start&Stop system that turns off the engine when the car is idle.

Market Share

Despite its high price tag, Ferrari has managed to maintain a significant share of the luxury car market. In 2020, the company sold over 9,100 cars (Beating its old Rival, Lamborghini, for that year, which sold 7430 Cars), generating over $4 billion in revenue. While this is a decrease from the previous year, due in part to the COVID-19 pandemic, it still represents a significant portion of the luxury car market.

Source: Ferrari

One of the reasons for Ferrari’s success is its strong brand recognition and reputation for producing high-performance cars. The company has also managed to maintain a sense of exclusivity, with production limited to around 10,000 cars per year.

Psychological Appeal

Part of what makes Ferrari so desirable and popular is its psychological appeal. Owning a Ferrari is a symbol of luxury, prestige, and success. For many, it represents the ultimate expression of wealth and status.

The Ferrari brand also has a strong emotional connection with its customers. Driving a Ferrari is an experience that goes beyond simply getting from point A to point B. It’s a visceral experience that engages all the senses, from the sound of the engine to the feel of the steering wheel in your hands.

Source: The New York Times (Sep 10, 2015)

In addition, Ferrari has a strong connection to the world of racing, with a long history of success in motorsports. For many, owning a Ferrari is not just about having a high-performance car, but also about being part of a community of like-minded enthusiasts.

No Unauthorized Modifications

Ferrari is like a protective parent when it comes to their cars. They don’t let just anyone make changes to their precious babies, oh no. Only the company’s engineers can give the go-ahead for any modifications. And who can blame them? Ferrari has put so much time, money, and love into crafting these cars to perform at their absolute best, and they’re not about to let some amateur mess that up.

And it’s not just about performance and safety — Ferrari also takes pride in the aesthetic value of their cars. To them, these vehicles are works of art, and any modifications that don’t meet their high standards could potentially ruin the whole masterpiece. Plus, Ferrari’s reputation is at stake here. They’ve worked hard to build a brand that’s associated with luxury and excellence, and they’re not going to let just anyone mess with that.

Source: Forbes

Another reason why Ferrari has a strict policy on modifications is to protect its intellectual property. Ferrari’s cars are the result of years of research and development, and the company has numerous patents and trademarks that protect its technology and designs. Unauthorized modifications can potentially infringe on these patents and trademarks, which can harm the company’s ability to protect its intellectual property,

But it’s not all about protecting their own interests — Ferrari also cares deeply about their customers. They see themselves as partners in the ownership and maintenance of these cars, and they want to make sure their customers get the best possible experience. That’s why they have a global network of authorized dealers and service centers, all of whom are trained to provide top-notch service. So if you want to make modifications to your Ferrari, you’d better go through the proper channels, or you might just find yourself out of the family.

Making the Shift to Electric

While Ferrari has a long history of producing high-performance gasoline-powered cars, the company has recently made a significant shift towards electric power. In 2019, Ferrari CEO Louis Camilleri announced that the company would be launching its first fully electric car in 2025.

The move to electric is not just about meeting regulatory requirements or reducing emissions. It’s also about meeting customer demand for more sustainable cars. As more consumers become environmentally conscious, there is a growing market for luxury electric vehicles, and Ferrari wants to be at the forefront of this trend.

Source: Top Gear

The shift to electric will require significant changes to Ferrari’s production process. Electric cars have different requirements than gasoline-powered cars, and Ferrari will need to invest in new technology and infrastructure to produce electric cars at scale. The company has already invested in battery technology and has announced plans to build a new production facility for electric cars.

Despite the shift to electric, Ferrari has made it clear that it will not compromise on performance or luxury. The company’s electric cars will still be high-performance vehicles, capable of delivering the same level of excitement and engagement as its gasoline-powered cars.

Conclusion

Ferrari is a brand that has become synonymous with luxury, performance, and innovation. From its humble beginnings as a racing team to its current position as a leading automaker, Ferrari has remained at the forefront of the industry by constantly pushing the boundaries of what is possible.

The company’s unique production process, focus on innovation and sustainability, and strong brand recognition have helped it maintain a significant share of the luxury car market. Its psychological appeal to customers as a symbol of wealth, status, and exclusivity has also helped it maintain its popularity.

Source: Grand Prix 247

As Ferrari looks towards the future, it is clear that the company is committed to continuing its legacy of innovation and performance. The shift towards electric cars represents a significant change for the company, but it is one that is necessary to meet customer demand and to ensure its long-term success. With its continued focus on luxury, performance, and sustainability, Ferrari is poised to remain a leading automaker for years to come.

Thank You For Reading!

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Swastik Sinha

A warm hello to all! I am Swastik (Sway) Sinha, a student at KU Lueven (BBA'2026), and have joined ‘medium’ to communicate my ideas and knowledge..