Italy
Presented By:
Presented to: DeLorean Motor Company
Location
Mathematical Location: 9
degrees east, 45 degrees
north
Situation: France,
Slovenia, Switzerland,
Austria
Formal Region: Western
Europe
Functional Region: Milan
Demographic Transition
If a country has a high birth rate
and a low death rate, the natural
increase rate will obviously rise. If a
country has a low birth rate and
high death rate, it will decline.
Italy is currently in stage 4 of the
demographic transition model.
The Agricultural revolution elevated
the natural increase rate because it
made it easier for people to survive
off growing food rather than hunting
and gathering. The Industrial
Revolution made it easier for
people to get work done faster and
more efficiently.
Demographic Analysis
In Italy, there are many strengths.
For example, Italy is excellent in
all of these categories, and it has
one of the higher populations in
the region. With a high population
comes a larger labor pool. All the
countries have a high literacy
rate, which provides an intelligent
work force. Countries like Austria,
Switzerland, and Slovenia have a
lower population. The Human
Development Index is considered
to be very high for each of these
countries. Italy’s main weakness
is their Per Capita GDP, which is
obviously lower than its
neighbors.
Country
Population
Growth
Rate
(2010)
HDI
Italy
-0.08%
0.828
81
60
$35,435
99%
France
0.53%
0.872
81
65
$42,747
99%
Austria
0.04%
0.851
80
8.5
$45,989
99%
Switzerlan
d
0.22%
0.874
82
7.5
$67,560
99%
Slovenia
-0.14%
0.854
78
2
$24,417
99.7%
Life
Population Per Capita
Expectanc
(Millions)
GDP
y
Literacy
Rate
Economic Development
Primary: Mainly Agriculture, such as grains,
fruits, vegetables, olive oil, soybeans, and meat.
Italy is 1st in wine production in the world.
Industry: Motor vehicles, chemical engineers,
electrical engineers, fashion/clothing design.
Services: Service jobs keep tourism going. For
example, waiters, chefs, cab drivers, and tour
guides.
In order to support high end sports auto
manufacturing a country must have the human
resources that come from a high level of
development.
Tourism is key to Italy’s economy. It’s the 5th
most visited country in the world. When tourists
see the array of cars, they want to take one
home.
Site Factors: Land and labor
Hourly cost of labor
It will cost less to pay workers in Italy Note: Italy has no It will cost less for Italy factory
minimum wage
Site Factors: Resources
List of Inputs: Steel, glass,
rubber, electrical components,
and plastic.
Italy offers 21 auto
manufacturers, 19 auto design
firms, and 18 auto part supply
companies.
All European, Middle Eastern,
and African auto markets are
available for sales.
Italy is home to 50% of worldrecognized name brand sports
car manufacturers.
Situation Factors
Miles to Major Markets
Paris
500
Brussels
600
Berlin
700
Amsterdam
700
Barcelona
700
London
750
Vienna
550
Prague
550
All Western European countries are within 1000 miles.
Infrastructure:Transportation
Countries
Italy
Airports
132 airports with 15 major
airports
Railways
Roads
Waterways
•487,700 kilometers
•2,400 kilometers
•19.729 kilometers
highways are paved
•Used for commercial
•Main category of express ••All
1st country in the world to traffic
trains is domestic service
start building motor ways •Limited overall value to
road and rail
France
475 airports
29,213 kilometers
951,500 kilometers
8,501 kilometers
Switzerlan
d
66 airports
4,888 kilometers
71,298 kilometers
65 kilometers
Austria
55 airports
6,399 kilometers
107,262 kilometers
358 kilometers
Slovenia
14 airports
1,228 kilometers
38,709 kilometers
There are many transportation options available
none
Infrastructure: Communication
Country
Internet Users (%)
Internet Hosts
(Per 1000)
Cell Phones (Per
1000)
Italy
52%
375
1341
France
69%
354
789
Austria
75%
373
1191
Switzerland
75%
523
1072
Slovenia
65%
286
960
Note: Italy is the second largest mobile communications market in
Western Europe.
Taxes
Country
Corporate Tax %
VAT
Italy
3.9/27.5
20
Austria
25
20
France
33
19.6
Switzerland
8.5
7.6
Slovenia
21
20
Italy does not appear to have a property tax
Social Stability
Human Rights: Freedom of religion is allowed because of
the 1947 Constitution of the Italian Republic. Blasphemy
is the only rule against the freedom of speech law.
Levels of Corruption: The Sicilian Mafia is the main
problem in Italy which uses its strength by using scare
tactics on innocent people. They also formed their own
government party and gained some of its own political
power.
Political Opposition: Italy has six major parties including
the People of Freedom, Democratic Party, North League,
Future and Freedom, Italy of Values, and the Union of
Christian and Centre Democrats. They also have 28
minor parties.
Sicilian Mafia
Free and Open Elections: People elect the Parliament
and the Parliament elects the President every seven
years.
Conclusion
Italy would be a great place to build a factory for the
DeLorean motor company. Italy is home to the majority of
the best-selling sports cars in the world. There is easy
access to some of the major markets of the world. The
cost to build a factory and employ workers is lower than
neighboring countries. The infrastructure for
communication and transportation is already wellestablished. The people of Italy have made themselves
known for building popular sports cars. The resources are
already in place for building high-end automobiles. All of
these factors combined make Italy the perfect place for the
DeLorean motor company to be successful.