Innovation and New Technologies in Ford Company

Innovation and New Technologies
Ford company
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Management 1
Contents
Introduction......................................................................................................................................2
About company............................................................................................................................2
Porter’s Five Forces Model.............................................................................................................3
Threat of new entrants- Low........................................................................................................3
Bargaining power of buyers- Moderate.......................................................................................3
Bargaining power of suppliers- Moderate...................................................................................3
Threat of substitute products- Moderate......................................................................................4
Competitive rivalry- High............................................................................................................4
Porter’s value chain model..............................................................................................................5
Technology cycle.............................................................................................................................7
Three Phases of innovation model...................................................................................................8
Ford to re-emerge in the new market...............................................................................................9
Firm’s strategic intent................................................................................................................10
Resources and capabilities.............................................................................................................10
Conclusion.....................................................................................................................................12
References......................................................................................................................................13

Management 2
Introduction
The aim of the report is comprehended and evaluates current position of incumbent as well as for
synthesizes the findings. The incumbent that is considered in this report is Ford Company that
has been compared Tesla motors. The current position of the incumbent is analysed with the help
4 strategic analysis framework. The four strategic frameworks, which have been selected,
include Porter’s five forces model, technology cycle, and 3 phases of innovation model and
porter’s value chain model. After assessing, position of ford the answer for the ford to re-emerge
in the new market.
About company
Ford motor company is well known American multinational automaker that has its main head
office in Dearborn, Michigan. The business is recognized by Henry Ford in the year June 16,
1903. The company majorly deals in manufacturing and selling the commercial vehicles under
the brand of Ford (Ford, 2019).

Management 3
Porter’s Five Forces Model
The ford motor company has maintained its position as one of the biggest automobile
manufacturer across the world by reforming its corporate strategies in order to acknowledge the
issues which shown in the analysis of Five forces model. This model is used by the company in
order to determine the outside aspect that can influence the operations of the company (Chernev,
2018).
Threat of new entrants- Low
Ford Company finds the low threat of new entrants in the market because the automobile
industry required investment of huge amount for starting the business. Thus, many companies
are unable to make the capital investment that leads to decline in their business opportunities. In
addition to this, the changes in the regulations that are taking place in the automobile industry
necessitate to upgrade the models of the vehicle that are majorly demanded by the customers.
This reduces the threat of new entrants in the market for the ford company.
Bargaining power of buyers- Moderate
The bargaining power of the buyers is moderate, as company is well known company who is
managing their business operations across the world (David, 2011). The major buyers include
rental buyers, customers who buy it for personal use and many others. However, many customers
are looking for advance technology as well as innovation in vehicles that makes them to switch
to other brand like Tesla. In the near future, the change in demand of customers can bring the
changes in purchasing preference of customers.