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IVECO Business model

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Miguel VARGAS        Assignment #1 [pic 1]

Master Degree in International Business Negotiation

Business model of IVECO - Industrial Vehicles Corporation

Presentation

IVECO is an Italian manufacturing company based in Turin. They design and built light, medium and heavy commercial vehicles, quarry/construction site vehicles, city and intercity buses and special vehicles (firefighting, off-road missions, the military and civil defense).[1]

They internationalization began whit the merge of the Italian, French and German brand in 1975; they set plants all over the world (Europe, Brazil, Russia, Africa, Argentina and China)[2]. They strategy to enter into new countries/markets is to buy the local leader or main actor (ENASA produced trucks, buses and military armored vehicles, in Spain) and some times they also create joint-venture (Naveco, specialized in light and medium vehicles in China).

Network Partners

Sponsorship

They have an enormous network of partners. First because of the sponsorship of sports events, such as the Olympic Games, the Davis Cup, the Jacques Cousteau expeditions in the Amazon basin, the Dakar rally or the Raid Pigafetta.

Joint-ventures

There is also a network of partners thanks to joint-ventures, mainly in Chine, whit companies such as Naveco, specialized in light and medium vehicles; Saic-Iveco Hongyan (SIH), specialized in heavy vehicles or Saic-Iveco FPT Hongyan (SFH), specialized in engines for heavy vehicles.

Thanks to this network IVECO can promote its image and develop its notoriety.

They business succeed

R&D

IVECO is an example of a successful international company. This success is thanks to their strategy that is the innovation that is clear when we notice they create the first independent front suspension, first diesel common rail, the driving style evaluation, the SCR System (Selective Catalytic Reduction), 8 speed automatic gearbox, etc[3].

Awards

And because of their technology and design they won many awards such as Van of the Year 2015[4], Truck of the Year 2013, Light Commercial Vehicle of the Year in Spain, European Transport Sustainability Prize in Germany, “Top Ethanol” technology prize, Prize of Prizes” for Innovation, etc.

Those characteristics made them so successful and different. They have a future vision and keep on moving, innovating and designing new vehicles.

The business core

As we said, big vehicles are the core business but the range is huge. IVECO build vehicles like the mini-bus that bring you from the Gatwick airport to the center of London, buses from the Parisian public network[5], military vehicles for the Russian army[6], fire truck to the Italian Fire Service or mining equipment for Canadian companies.

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