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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Every external factor exhibits an open door or risk that the business must address through vital activity. As one of the main five players in the worldwide car industry, Ford guarantees that it addresses the issues in its PESTLE analysis. These issues are an immediate determinant of the hierarchical advancement direction of Ford.
The presence of Ford Motor cars is very strong in terms of global aspect, because it operates in six continents. So they are present all over the world.
Transportation of goods and people plays a huge role in globalization and self-driving cars have the power to impact transportation in a monumental way. Take Daimler’s Freightliner Inspiration for instance. This 18-wheel truck can transport goods without a driver (O 'Kane, S., 2015). Owners can wave goodbye to the cost of a driver’s salary, training, insurance, supervision, and more. This cost reduction will enable companies to lower their prices, thus attracting more international buyers. At the same time, however, this will also encourage more domestic sales. The amazing Elon Musk is a pioneer of transportation of all kinds. Between his spaceships at Space X, his design for the Hyperloop, an unbelievably fast intercity public transit vehicle, and his all-electric cars at Tesla Motors, Musk is reshaping the automotive landscape (Musk, E., 2015). Because Musk is a man
Ideas introduced in the article assist in understanding Ford’s current situation. Ford reported sharp falls in U.S. auto sales in May 2008. Sales of its most profitable pickups and SUVs suffered the most (“US Auto Sales Slide”). Some of the main
Ford has had to face various challenges and current goals are to obtain the market share from its competitors and build the vehicles consumers are demanding. By meeting these needs, the company can redefine itself. With consumers trying to decrease their debt and an increasing number of competitors showcasing fuel-efficient vehicles, Ford needs to create affordable high quality and fuel efficient vehicles to remain competitive. An internal analysis of Ford Motor Company will evaluate its resources and capabilities. This analysis can aid in determining Ford’s cost position, competency, and competitiveness in the current marketplace.
With more and more countries taking part in the international trade, the world’s market is expanding in a rapid pace. How to make use of the enlarging market and remain competitive become urgent for those participants. Market diversification is a good way to take full advantage of the resource and improve the efficiency by enlarging the business scope. In addition, it can also ease the pressure of competition and reduce the cost. The report mainly discuss that Australian Holden may enter Chinese market and chooses Shanghai as the target market. The report firstly analyzes the Australian and Chinese market and briefly
To lead the premium automobile segment across the world. This vision is the core of the company 2020. They regularly fine tune the objectives to match the changing economic, ecological and social requirements.
There were opportunities in India and in China to diversify the market and raise revenue for Ford Motor Company by introducing new vehicles that was suitable for their population and needs
Increased globalization is the direction that all major multinational corporations are moving towards. Ford had made a good attempt at making a world car that proved to be partially successful in the beginning of sales. The company has learned that locational specialization is an extremely important aspect to selling globally because of the differing personal preferences and legal demands.
Participation of developing economies in globalization of the automotive industry was enhanced by innovations in telecommunication, technology development, and transportation. These elements made it possible for the industry to fragment its production processes and creation of smaller assembling plants that were located in different regions of the world. This segmentation of production processes created multiple global production networks and expanded the global market making many developing countries reap the benefits of globalizing the automotive industry (Maxcy 108).
Ford’s vision statement, “people working together as a lean, global enterprise for automotive leadership” (Thompson, 2015) has three major points that surrounds the vision statement; which are global leadership, emphasis on stakeholders, and lean business (Thompson, 2015). Each area is a specific point that Ford concentrates on in order to better the business. Global Leadership indicates that Ford wants to become a top player in the international market; Ford achieves Emphasis on Stakeholders through enhancing their HR policies and corporate social responsibility strategies for employees, customers, investors, and others; and Lean Business which they have
Objectives |Metric |2009 |2010 |2011 |Target | |Outsell competition |US Market Share |15.3% |16.4% |16.5% |=>16.5% | |Sustainability |Ford U.S. fleet CO2 emissions, combined car and truck, grams per mile (lower grams per mile reflects improvement) |326 |329 |318 |315 or less | |Innovation |U.S. Utility Patents Issued to Ford and Subsidiaries |325 |430 |444 |>450 | |
Ford Motor Company preserves its place as one of the largest makers of vehicles globally by making changes to its strategies. Ford needs to create a plan of action and ideas that react to the most substantial effects from outside divisors in the motor vehicle industry globally. The Five Forces analysis of Ford Motor Company recognizes the most significant outside elements and how they affect the company, rendering data that helps in management’s decision-making process.
Four of Ford’s strengths include research and development, a strong position in the United States, strong market share all over the world, and a solid portfolio of automotive products. Ford has an extremely strong research and development capabilities that are helpful in launching new vehicles (Ford Motor Company SWOT Analysis, 2016, p. 6). Ford recorded $6.4 billion of engineering and R&D costs in FY2013 and $6.9 billion in FY2014 (p. 6). In January of 2015, Ford opened a new Research and Innovation Center in Palo Alto to speed up developing technologies and experiments regarding customer experience, mobility, connectivity, etc.
In today 's global business environment, more and more important to the success of the enterprise management strategy change. Ford, for example, is a famous auto company with a long history, as the second largest car factory ford does have a unique business. While ford cars gradually established production bases in different parts of the world, and has formed the independent status of the world 's affiliates. During the period of the competition to follow, the ford motor is used to keep the strategic advantage for a long time, facing the Japanese car company "low price, high quality" of market competition, market share is declining, as a result, the ford motor company has launched a strategic change, in addition to the layoffs to reduce