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Ford Motor Company Diversification Strategy

Decent Essays
The Ford Motor Company’s Global Quest 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…show more content…
The Asia Pacific Africa market grew 3.7 percent and their market share in China soured to a record high of 4.3 percent. “Next year, Ford is on track to open its Changan Ford Assembly Plant No. 3 and Changan Transmission Plant in Chongqing, China, as well as Camacari Engine Plant in Brazil. The new Chongqing Assembly Plant will increase the company’s production capacity in China by 300,000 units next year (Ford’s 2014 Global Strategy, 2013). Even though the Ford Motor Company is currently doing extremely well in the automotive industry, they are currently emerging opportunities to be a leader in electrification, autonomy, and mobility. The Ford Motor Company recently purchased SAIPS and Chariot. “SAIPS is a world-class provider of customized algorithmic solutions in the fields of computer vision and machine learning” (Crunchbase, na, nd). Chariot is a company that offers shuttle service and commuter mobility programs in larger cities. The purchase of these two companies will help the Ford Motor Company as they expand as a mobility company as well as the leader in the automotive industry. According to the article, Ford Outlines Growth Plan, “Ford is evolving its business in three ways:
• Fortifying its core business by building on its global leadership in trucks, vans, commercial and performance vehicles and growing in global utility vehicles.
• Transforming traditionally underperforming parts of its
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