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VIDEO INTRODUCTION:
Hi everybody,
In the year 1908, a small workshop owner took his 10 year old son to a race course in a small town in italy. For most people this race was merely a source of afternoon entertainment, but for this 10 year old kid it was the most exhilarating experience of his life. He heard the engines roar, the people screaming and as the cars raced through, he smelt the scent of the burning rubber tyres!! And that's when this kid decided to build the best race car in the world!! Little did the spectators that day know that they were witnessing the birth of a legend. Because the kid they saw was none other than Enzo Ferrari and the cars that he would build would go on to form the most iconic automobile company in the history of the world which we all know today as Ferrari!!!
If you look at how far far ahead ferrari is, take a look at this,
In fy23, Mercedes had 170,000 employees and sold 2.49 million vehicles, bmw had 154,950 employees and sold 2,555,341 vehicles, cars where ferrari only has 4988 employees and sold only 13,663 cars!! But if you look at the valuation of these companies, while mercedes has a market cap $73.39 Billion, bmw has a market cap of $60.75 Billion, where ferrari has a market cap of $77.14 Billion!!! So in spite of selling 190 times less cars than BMW and mercedes, ferrari is still more valuable than both its counterparts!!! Now if you look back at history, there was no practical way Enzo Ferrari could have built an 80 billion dollar company, because when he started he had no money, no rich connections and most importantly, he built the company during the worst period in modern history which was the great depression and world war 2!!!! But when he died he died he was worth 100 million dollars and was known as one of the greatest engineers in history!!
So the question is, how is it even possible that a poor kid with no money and no engineering background went on to build the most iconic automobile company in history?
How did he manage to build a billion dollar company during the great depression and world war 2?
And most importantly, what are the lessons that we need to learn from the iconic rise of Enzo ferrari?
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