Comprehensive Case Analysis: Ford Motor Company
Ford is an American multinational automaker; it is situated in Dearborn in Michigan. The company usually sells automobiles together with light commercial vehicles under the brand of Ford and the luxury cars under the brand of Lincoln. In the past, the company also produced automobile components, tractors and trucks. The company also has some stakes in Aston Martin of United Kingdom and Mazda of Japan.
The company is controlled by Ford family, though they possess the least shares. The vision of Ford is to become a leader globally in providing of its varied and esteemed customers with transportation alternatives that are eco-friendly, innovative and superior. Its mission is to offer outstanding products to improve the lives of people by anticipating the needs of consumers. Though the company is not badly off, it is not performing as well as it is expected in the market. Therefore, this paper gives a comprehensive case analysis of the company regarding the factors leading to this (Oster, 1999).
Existing objectives and strategies
Objectives
The company has various objectives which it wishes to attain which include:
- Helping in reduction of dependence on oil.
- Make safety vehicles.
- Promoting the use of bio-fuels.
- Cutting global energy and use water.
- Producing and selling higher quality cars at reasonable price.
- Contribute to stability of climate.
- Making cars that people at different economic levels can own.
- Contributing in the reduction of long-term emissions.
Strategies
The company has strategies that will enhance its market activities to prosper. These include: having brand loyalty. To have affordable prices for all vehicles; producing cars for all economic levels. To be operational in all countries through market expansion and global partnerships as well as strategic alliances. Initiation of cost reduction measures and production of smaller cars and vehicles. Using future technologies in today’s cars.
Strategy of Ford to take advantage of an external opportunity
Ford Motor company has a strong placed trade name. There is also a customer desire for hybrid cars. Therefore, the company should use new and future technologies to provide the hybrid cars. This will increase the company’s market share. The company should utilize its strong research and development department to determine what the customers in the market want. Doing this, increases the company’s knowledge on the preferences and tastes of consumers in the changing market environment. After having facts on the customer preferences, it should then use its skilled and experienced engineer to design what the customers want (Fleisher, & Bensoussan, 2002).
Strategy that the company might use to address a potential threat
In the motor industry, there are redundant products. This is a feature that has resulted tom marketing problem for many companies in this industry. For Ford Motor Company to curb this problem, it ought to reduce prices of redundant products particularly in developing countries. This is because these countries have economic crisis and business for these products may not flourish here (David, 2011).
Competitive Profile Matrix
|
Ford Motor Company |
Toyota |
General motors |
|||||
|
Critical success factors |
Weight |
Weight |
Rating |
Weight |
Rating |
Weight |
Rating |
|
Product quality |
0.20 |
4 |
0.20 |
2 |
0.20 |
2 |
0.20 |
|
Warranty |
0.15 |
2 |
0.30 |
2 |
0.10 |
|
|
|
Global expansion |
0.10 |
3 |
0.60 |
3 |
0.20 |
2 |
0.20 |
|
Financial position |
0.15 |
4 |
0.60 |
3 |
0.45 |
3 |
0.45 |
|
Customer loyalty |
0.10 |
3 |
0.80 |
2 |
0.40 |
2 |
0.40 |
|
Advertising |
0.5 |
3 |
0.15 |
2 |
0.20 |
2 |
0.20 |
|
Market share |
0.10 |
2 |
0.30 |
2 |
0.45 |
2 |
0.45 |
|
Price Competitive |
0.15 |
4 |
0.30 |
2 |
0.30 |
2 |
0.30 |
|
Total |
1.00 |
3.25 |
2.30 |
2.15 |
|||
External Factor Evaluation Matrix Ford Motor Company
|
Key external factors |
Weight |
Rating |
Weighted score |
|
|
Opportunities |
||||
|
Company surviving without governmental help are more attractive |
0.5 |
1 |
5 |
|
|
Increasing environmental awareness |
0.5 |
1 |
5 |
|
|
Buyers bargaining power |
0.2 |
1 |
2 |
|
|
Availability of new technologies in this industry |
0.3 |
1 |
3 |
|
|
Limited leading companies in motor industry measure up to the customer number |
0.4 |
3 |
12 |
|
|
Big market share |
0.8 |
1 |
8 |
|
|
Security growth of manufacturing and experience it |
0.2 |
2 |
4 |
|
|
Worldwide company Global development |
0.1 |
3 |
3 |
|
|
Customer demands about fuel efficient cars |
0.5 |
2 |
1 |
|
|
Increasing consumers spending habits |
0.7 |
3 |
21 |
|
|
Customers desire for hybrid cars |
0.6 |
4 |
24 |
|
|
Customer modern vehicles desires/demand |
0.8 |
4 |
32 |
|
|
Threats |
||||
|
Competitors different vehicle comfort offers |
2 |
1 |
2 |
|
|
High cost for substitute products in other countries |
2 |
2 |
4 |
|
|
Financial crisis |
6 |
1 |
6 |
|
|
Slowdown in US economy make new car sales to decrease drastically |
1 |
2 |
2 |
|
|
High cost of Research and development |
4 |
2 |
8 |
|
|
Weak USD |
2 |
2 |
4 |
|
|
Unavailability of credits from banks |
5 |
2 |
1 |
|
|
Global economic recession as consumer demand |
7 |
2 |
14 |
|
|
Increase in gasoline prices |
4 |
1 |
4 |
|
|
Total |
1 |
– |
2.1 |
|
References
David, F.R. (2011). Strategic management: Concepts and cases (13th ed.). Upper Saddle River, NJ: Prentice Hall / Pearson.
Fleisher, C.S. & Bensoussan, B. (2002) Strategic and competitive analysis: Methods and techniques for analyzing business competition: Upper Saddle River, NJ: Prentice Hall
Oster, S.M. (1999) Modern competitive analysis, 3rd Edition USA: Oxford university press
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