The Impact Of Porter's Five Forces

thereby forcing the firms to compete for markets in the emerging economies thereby increase their market share. Ford has taken advantage of the emerging markets, such as China, Brazil and India by establishing franchises in India and Brazil, acquiring Jiangling in China, as well as buying stakes in other companies around the world to ensure presence of the Ford brand in the global market. Moreover, the intensity of competition in the motor industry is also fueled by the high fixed costs of manufacturing and the low switching costs as consumers prefer other models and makes. Ford has adapted to such rivalry by making a model for each consumer needs, for example Lincoln for the luxury-seeking consumer and trucks for the business-oriented consumer in addition to considering quality, durability and

Ford has a very strong brand name and offers wide range of cars like automobiles, commercial vehicles, luxury vehicles etc. they also target different set of customers.

While trying to enhance the budgetary state of the battling automaker, another CEO, Alan Mulally, had been chosen in September 2006. Mullaly, a previous official VP of the Boeing Company was relied upon to utilize his mastery and authority aptitudes to remake the corporate culture and recover Ford's capacity to contend in a worldwide industry. Mulally expressed that "the greater is-better perspective that has characterized Ford for quite a long time was being supplanted with another approach: Less is More." Ford expected to give careful consideration to cutting expenses and changing the way it worked together than to conventional estimations, for example, piece of the overall industry

Fordism was prevalent in car manufacturing industry; albeit, its principles were exported around the world in other industries. In accordance with Porter’s generic strategy-1985, Ford’s business strategy considers cost leadership as its competitive advantage with utmost effort on cost reduction to ensure mass consumption.

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

Rebuilding Ford’s “depleted talent bank” could take many years. In the meantime, the lack of talent will prevent the company from being able to rapidly design and manufacture innovative car and truck models. Given shrinking sales levels, the company also needs to quickly reduce capacity, and should shut down two or three assembly plants, according to analysts. But the company is hampered on the technology end because of strict labor agreements with the UAW, and will therefore likely reduce shifts and slow down assembly lines rather than close plants completely.

The following pages will examine the strategy employed by Mulally and Ford at all levels of the corporation, situating this strategy in the context of the company's history, the general environment, and the industry environment in which the company is operating. Theoretical and practical considerations will be examined and clarified throughout this case report. Ford's

Ford hold a very strong position in the United States market which is why it generates more than 50% of its revenues from here. After General Motors Corporation, Ford Motors holds the highest market share in the United States. As of August 2015 the company contributed a 14.8% of the total United States market share. Ford’s market in the United States is performing very well as compared to its other two important markets, Europe and China. There are some popular models manufactured by Ford that gained immense fame and success and consumers highly demanded of these particulars models such as the Fusion sedan, F150 Pickup truck, Explorer SUV and the Transit Connect work van.

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.

In 1979 in Harvard Business Review was published article “How competitive Forces Shape Strategy” by Michael Porter who is nowadays recognized as specialist in competitive strategic planning and economic development. This leads to a development of five forces tool which described in his book “Competitive Strategy: Techniques for Analyzing Industries and Competitors” in 1980. In mid 90s to five forces tool was added sixth force. This model became powerful tool and helps manages to understand insights and outside perspectives of the company. That is undisputable fact that Michael’s five forces have made a huge impact on the strategic planning and identifying main factors that are driving competition. The only thing that makes to doubt in this

Growth of Competitors- With growing competition in the market, Ford must find a way to regain its market share and rebound from the recent decline from the top 3 in the industry. Toyota is leading the way as is Renault-Nissan per recent polls, Ford has dropped to fifth in World automobile production. Growth in alternative mobility platforms has also allowed for new competitors to enter the market such as Tesla. As

Ford Motor Company current mission statement is “committed to provide personal mobility for people around the world”. With that in mind their vision is to become the world’s leading Consumer Company for automotive products and services. By improving everything they do, the company provide superior returns to their shareholders (Vision, Mission, Values). Ford Motor Company 's objective is to deliver a total return to shareholders in the top quarterly of the S&P 500 over time. The company will meet this goal by the transformation into the world 's leading consumer company for automotive products and services which

Porter 's Five Forces model (PFF) is a powerful instrument that can be utilized by companies to investigate its situation and identify its industry 's competitors. Analyzing industry will help any business in determining the competitive strength and weaknesses. By using PFF model, investors can gain valuable information regarding what the actual factors that affect the organization 's profitability (Evans & Neu 2008). This paper will analyze the Cola Wars case study based on the PFF model, and the primary components of soft drink industry. At the end of this paper, some recommendations will be given to Coca-Cola company to enhance its position in the market.

Ford has made their vision very clear; they let people know what their goal is and how they plan to measure that goal for success. Ford (2015) declared, “People working together as a lean, global enterprise for automotive leadership” (p. 1). Ford is working toward their vision by making great products, having strong businesses and making the world better. Ford has not left much to the imagination; they have laid everything out for the world to see. You can judge for your self to see if Ford has been able to meet their vision.

In September 2006, Alan Mulally was named the new CEO of Ford. Alan Mulally has an engineering degree in Aerospace and an MBA from MIT. He spent 37 years at Boeing, and many credit him with being able to turn around the struggling aerospace company. His critics comment his aerospace experience does not translate well to the automotive industry. In fact, he studied the production model processes of Toyota and incorporated it into Boeing Corporation. He has begun integrating these manufacturing processes into Ford Motor Corp. Mulally has a reputation as a cost-cutter and an efficiency aficionado and has brought that approach to Ford where he shed 46,000 jobs in North America alone. He has solid experience in customer satisfaction, manufacturing, supplier relations, and labor relations.