The business level strategy comprises of the business actions aimed at providing value to customers, the deployment of the business level strategies takes place within the scope of a particular individual markets for the company products. This paper discusses the business level strategies deployed by Ford Motors and how the company’s values can be better linked in order to create value for the company and how Ford Motors can place itself in terms of the five forces of competition. The business level strategy deployed by Ford Motors is the cost leadership strategy, which puts emphasis on operating at lower costs, but not essentially offering the lowest prices in the market (Haines 2004). Therefore, a firm can use such a position to reduce its prices in order to increase its market share or maintain the current prices and increase its revenue per unit items compared to its competitors. The principal idea of the low cost strategy is that cost and prices are not dependent, and the strategy puts a lot more emphasis on costs to achieve a status that it can use to foster competitive advantage or use lower costs to increase its profitability (Haines 2004). A cost leadership strategy is effective only if other competitors in the motor industry cannot imitate (Hill and Cronk 2010). The company is deploying strategies to significantly reduce its operational costs, which is a critical success factor for the business. This means that the firm has to make effective use of the resources at
Ford Motor Company is one of the world’s largest producers of cars and trucks and one of the largest providers of automotive financial services marketing vehicles under the eight brands shown below. The Company is a publicly traded company listed on the New York Stock Exchange. During 2002, the company made 6.7 million vehicles and employed 328,000 people worldwide. Business partners include 25,000 dealers and more than 10,000 suppliers.
Organizations that strive to be a leader in an industry must look beyond their domestic boundaries and expand into international markets. The Ford Motor Company remains the second largest automotive manufacturer in the United States and fifth largest automotive manufacturer in the world with Toyota leading the way. This essay will address the Ford Motor Company’s strategic approach to compete internationally and identify which resources and capabilities make it attractive to compete internationally. Additionally, the Ford Motor Company’s diversification strategy options will be described. Lastly, we will identify how chosen diversification strategy options would lead to a strategic fit for the Ford
Typically, our firms performance objectives was to be sustainable and profitable as a business while at the same time achieving customer satisfaction for our main consumer segments; singles, family, and enterprisers and value seekers. Our generic marketing strategy was focused around a balance of cost leadership, and product differentiation. Cost leadership was employed strategically for our economy and family car, executed with emphasis on efficiency and safety. In period one, our firm was positioned positively and strong; sales were at a profitable level of $20,516.
Business level strategy refers to the integrated set of actions a firm uses to gain a competitive advantage by exploiting core competencies in specific product markets. HP is trying to gain competitive advantage through differentiation by becoming a smaller more agile force in the industry that will bring more modernized systems such as cloud and digital systems vice using antiquated IT infrastructures. The HP Enterprise will differentiate from its competitors by providing services within four component areas; transform, protect, empower, and enable which are indicative of the way the market is headed and meets the customer need. An example of an HP intended and realized business strategy is acquiring Eucalyptus, a provider of open source software for building private and hybrid enterprise clouds. This acquisition is a realized result of a three year planned strategy. (HP,
A competitive strategy, or business-level strategy, is the way a business used to successfully enter and penetrate into a market (Eastwood et al, 2006), and also, to succeed in this chosen market against its competitors (Johnson et al, 2014). A company needs to develop and apply appropriate strategy to help the company to generate distinctive competences (David, 2007). Compared with the strategies implemented in other levels of operation, competitive strategy is more focused on the competition against other competitors and strategic choices to better attain market share (Harrison and St. John, 2009). According to
Corporate-level strategies are liable for market definition; they address the entire scope of the business. This strategy helps a business to diversify its service. It gives them direction in which geographic region they should operate and which service markets to strive in. “Thus, an effective corporate-level strategy creates, across all of a firm’s businesses, aggregate returns that exceed what those
In this paper I will discuss Macy’s Incorporated by analyzing their business level strategies to determine which I think is the most important to their long term success and if I think it is a good choice. I will analyze their corporate level strategies to determine which I think is the most important and whether or not I believe it is a good choice. I will analyze the competitive environment to determine the corporations’ most significant competitor and compare the two companies’ strategies at each level and evaluate which company I think is most likely to succeed in the long term. Once the
A mutual fund manager is a person who actively buys or sells and sometimes both funds. They are experienced in implementing a funds strategy used for investing and manages its trading activities as well as the portfolio. Choosing whether or not to invest in Ford Motor Company will take the use of a SWOT analysis and learning about the stakeholders of the company.
In order to identify BMW Group’s internal strengths and weakness, here applied strategic capability which combined three keys of resource: tangible resources, intangible resources, and competences. All of these resources enable a company to attain a sustainable competitive advantage (Dess et al, 2010).
United States Securities and Exchange Commission, (2012).Ford motor company 10-k . Retrieved from Ford Motor Company website: http://phx.corporate-ir.net/phoenix.zhtml?c=87772&p=irol-SECText
1. Jet Blue´s Business- level strategy; value and cost drivers Jet Blue uses to create and maintain ist competitive position
Ford in 2011 is on the rebound, having recovered from the darkest hours in the late 2000s. The company for the company is that many of its competitors are also rebounding, and there are significant long-run changes in the automobile industry. Ford needs to determine a strategy that will take the company through the next decade, and improve the company's competitive position. The company has four of the top fifteen best-selling cars in America, but also needs to set strategy globally, as many of the best automobile growth markets are overseas. Another strategic consideration is that CEO Alan Mulally remains in the process of changing the organizational culture at Ford, which had become stagnant and unresponsive to the changes in the industry environment.
Founded in 1903, Henry Ford managed to get investor support to open the first manufacturing automobile company in Detroit, Michigan. Ford Motor Company has been known for its mass production of vehicles using a perfected assembly line method and its innovations in the automobile industry. Ford’s famous Model-T was developed as an innovative automobile that could be produced quickly, while keeping the cost to a minimum. This allowed people with a lower income the opportunity to afford an automobile. One of the biggest changes in the automobile industry occurred in 1913 with the introduction of a perfected assembly line method. This assembly line method was the one of the main reasons Ford Motor Company was able to keep the cost of vehicles and the production time to a minimum. Ford also took the first step to increase wages of their employees above the industry standard. Although it was still a very low value, Ford offered $5 per day which was a huge improvement from the $2.34 per day that most companies offered.
In this section we analyse the political, economical, social, technological, natural and legal environment of Ford Motor Company.
A successful cost leadership strategy usually provides the entire firm with high efficiency, low overhead, limited perks, intolerance of waste, intensive screening of budget requests, and wide span of control efforts. However, some risks of pursuing this strategy are that competitors might imitate the strategy, thus, driving overall industry profits down; that technology breakthroughs in the industry may make the strategy ineffective; or that buyer’s interest may swing to other differentiating features besides price.