Ford's Strategic Analysis in Auto Industry

This assignment requires a strategic analysis of Ford Motor Company within the global automotive industry. Utilize key concepts from strategic management, including SWOT analysis, Porter's Five Forces, and Barney's Resource-Based View (RBV). Additionally, explore Ford's business model, its innovation strategies, and how it maintains competitive advantages. Consider external factors influencing the auto industry, such as technological advancements, regulations, and consumer behaviors.

Strategic analysis

Table of Contents
INTRODUCTION...........................................................................................................................1
Overview of Ford Company ...........................................................................................................1
Porter’s Five Forces Analysis .........................................................................................................2
Threat of substitute products and services..................................................................................2
Threat of new entrants.................................................................................................................3
Rivalry among competitors.........................................................................................................3
Bargaining power of buyers........................................................................................................3
Bargaining power of suppliers....................................................................................................3
PESTEL Analysis............................................................................................................................4
Political.......................................................................................................................................4
Economic.....................................................................................................................................4
Social...........................................................................................................................................4
Technological..............................................................................................................................4
Environmental.............................................................................................................................5
Legal............................................................................................................................................5
Value Chain Analysis......................................................................................................................5
Inbound Logistics........................................................................................................................5
Operations Management.............................................................................................................6
Outbound Logistics.....................................................................................................................6
Marketing and Sales....................................................................................................................6
Services.......................................................................................................................................7
CONCLUSION................................................................................................................................7
REFERENCES ...............................................................................................................................8

INTRODUCTION
This is a research process which is used evaluate strength, weaknesses, threats and
opportunities of a firm to attain business goals easily. These kind of planning help to build values
for organisational objectives and future goals. This project report is based on Ford which is a
automotive business industry. This report includes strategic planning of organisation to getting
higher business advantages easily. Project report represent company overview, strategic analysis
through porter's five forces and PESTEL analysis to understand impact of external environment
on business organisation (Laudon, 2013). At last it determines value chain analysis through
inbound and outbound logistic, operation management and marketing and sales valuation or its
services as well.
Overview of Ford Company
Ford is a American multinational automotive industry which was founded in the year of
1903 by Henry Ford. This is a largest ethical chain who has grown to more than 40 suppliers in
40 countries. They are sold licensing cars and its services in world wide. Ford's former are
acquired Jaguar and land rover in 1989 and 2000 and sold it to Tata Motors in the year of 2008.
ford produced approx.. 5.532 million auto mobiles and provide employment services to around
213,000 employees at 90 plants or in globally (Zott, 2013). This is a largest growing organisation
who provides quality services to their customers. Through this they also represent employment
services to build economy growth in a country and provides innovative ideas to their customers.
As per a specific research it has been determine that Ford earn net worth approx $4.6B and their
specific revenue is counted as $ 151.8B in the year of 2016-2017.
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Porter’s Five Forces Analysis
This is a effective marketing tool which is used to build values for a organisation after
providing appropriate information about their strong rivalry and customers behaviours. This tool
was established by Harvard business school professor Michael porter to understand
attractiveness and effectiveness of marketing tool for a business firm (Büyüközkan, 2012). This
is build its own image as a effective business strategy tool. There are some other elements of this
process are given below -
Threat of substitute products and services
These can be build threats for organisation through small chains who get licensing to
produce quality products in market. These kind of organisations are directly affecting quality of a
specific firm and their products to getting higher profit easily. For this organisation need to build
quality services for their customers to build their own image in competitive world. Ford is
provide quality services to their customers and earn effective growth and benefit easily. These
kind of threats also build value of organisation for customers to build differentiation between
their own products to substitute ones. They all help to build values and opportunity for ford to
get effective competitive advantages easily (van, 2012).
Threat of new entrants
New entry in a target market always build threats for a specific organisation. Main reason
behind this process is a firm build new strategy and planning to build their own image in market.
These type of working approaches are directly affect a specific organisation's business activities
as operational and functional as well. Ford is build appropriate strategy to get higher business
advantages from target market but their rivalry organisation also build effectiveness in their
business activities. These kind of rivalry always creates challenges for a specific firm to serve
effective services in attractive price for making strong connection with customers for long time.
Rivalry among competitors
Existing competition in market always promote a business activity to gain higher
business advantages through effective business strategy and planning. In this process advertising
and cost effective process takes part to providing desired outcomes to a firm. In auto mobile
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industry ford facing strong competition to others as General motors, Volkswagen, Toyota, Tesla
and Hyundai etc.. For them Ford needs to build strong strategy to implement in their business
processes. In this prices reduction technique, quality and services appraisal and other term can
build connection with customers to getting higher business advantages easily (Walker, 2014).
Bargaining power of buyers
Buyer are also known as customers of organisation who build values for them to survive
in competition market. Through their relation a firm can build their own value and goodwill to
gain specific worth easily. Customers are most important factor of firm who are looking for
better services in market to invest their own money at specific place. For them Ford can use
different kind of ideas such as promotion tool, cost effective methods, appropriate discounts and
seasonal benefits that attract more and more customers easily. All attracted customers are also
build bargaining power for customers and manage effective relation with them to getting higher
benefits easily (Abraham, 2013).
Bargaining power of suppliers
Supplier are products provider to their customers through them individual can easily
understand quality services and their information and other things that affect quality service of
them. Ford easily build values of customers through their effective services and other objectives.
Employees of organisation also provide their effective contribution to gain higher profit through
quality services and cost effective methods to generate customer value easily. Supplier neds to
understand their role and responsibility for ford's entire business operation activity to enhance
growth and other profitable issues.
PESTEL Analysis
This is a external environment factor that affect business policy in appropriate manner.
Ford is a large scale organisation and they directly affected through external environmental
factors. So for them it is very important to build effective strategy to getting effective outcomes
and reducing its negative impact (Theißen, 2014).
Political
Ford is a large scale organisation and they have various stores in different location so for
them it is very important to manage all their polices according to government norms and
regulating acts. Most of the time it is implemented for economy growth to getting higher growth
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and profitability easily. Through this process Ford can easily gain higher business growth and
employment services for other individuals.
Economic
These factor is directly affecting business terms and their growth. Through business
advantages a economy of country directly getting higher growth and worth that can affect
lifestyle of people. Business organisation's such as Ford provide tax and other income to
government that use to build values for individual's development. As ford is a largest
organisation it is provide employment services to people to enhance their skills an working
approach for their career development also (Xu, 2012).
Social
This is a effective tool and technique to build effectiveness for individual person. These
population factors are also affect business norms and customers choice as well. These factors are
based on customers choice, new fashion and other trends that affect organisational productions
activity and service approach as well. Ford is also a desired organisation in market who serve
effective services to their customers according to their demand and needs.
Technological
These factor are faster growing approach that affect business policy ans services easily.
In today's scenario each and every person want technological support system and product that
provide higher satisfaction to them. Ford is faster growing organisation who provide effective
services to their customer according their demand and terotechnological ideas. These thinks uses
innovative ideas of employee and technological equipment that utilize capital of organisation in
finish goods. Auto mobile industry also demand for advance research in new technique because
lots of competition grab innovative ideas to build relation with customer for getting higher
business advantages and growth (Aslani, 2013).
Environmental
These factors re directly affecting products quality and environment la values. All
products of organisation need to getting effective outcomes from environmenal values.
According to this factors Ford needs to introduce new cars that do not affect negatively on
environment of a country.
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Legal
These term are related to legislation and government rules that organisation needs to
understand to getting competitive advantages easily. These factors are includes legislation, tax,
policy, trade market, business norms, political stability, employment policy and some other rules
as well regulation that are regulated for a business organisation that wants to serve their services
in different organisation (Barney, 2015).
Value Chain Analysis
This is primary activity of firm that used to build values of their activities and final
product costing to analyse other strategy to reduce external prices and maximise differentiation.
This is basically a internal business approach which is used to build values of raw material into
finish gods according to market and customers demand and need as well. It is also uses as a
strategic tool to gathering information about internal firm activity and its business approaches.
Through this strategic plan ford can easily get information about their business activities
advantages and disadvantages that uses to build values for future. This process is divided into
some other factors that determine various steps such as -
Inbound Logistics
This is a business operational activity which is used as integral element of firm to
involving some process of receiving, storing and supply raw material for use in production
services. This is first stage of value chain method that used to analyse customers demand and
market need to utilize raw material in finish goods. For this process organisation need to manage
their business process activities in effective manner to getting higher business advantages easily.
In this process innovation technique of organisation helping to build values of their products and
services for customers and their satisfaction. Ford always uses innovative ideas and advance
technology to getting higher business advantages easily (Tijssen, 2012).
Operations Management
This is most effective method of a organisation that includes different kind of activity to
manage business services in effective manner. Operational management includes designing,
planning, organising, implementing, monitoring and controlling business activity in effective
manner. Through this process Ford can easily get competition advantages easily from target
market. These kind of activities are build values of organisational procedures to providing
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higher satisfaction to their customers. Ford can easily put fund and capital to business activities
for getting effective or desired outcomes easily.
Outbound Logistics
This is third term of Value Chain Analysis which is uses to create finish goods for
customers of organisation. This is outsider process in which a firm make strategy to provider
their services to customers in effective manner. Ford open their stores and showrooms in various
countries to providing effective information to their customers toward effective products of firm
and company. All there stores and services are located according to customers demand their
population who want to get effective services of firm in appropriate manner. Ford is large scale
automotive organisation who provide desired services and Cars with innovative technology to
build higher values easily (Dutta, 2013).
Marketing and Sales
This is a most effective tool which is used to build values of customers and market for a
organisation. Marketing is a functional division of business entity who works to gathering
information about market demand, customers need, trend or fashion, competitive firm and cost
effective technique to providing higher bushiness advantages easily. Ford always uses effective
strategy and planning to produce quality products forb their customers and other marketing
entity. In this procedure marketing skills and effective business skills also build growth and
profitability easily. Ford can adopt new technology and innovative ideas for their operational and
functional activity to getting desired outcomes easily (Tijssen, 2012).
Services
Ford is always uses promotional tools and cost effective methods to serve effective
services top their customers these kind of approaches helps to build values of firm in market and
in front of rivalry firms. These kind of approaches always build values in market for long term
benefits. Sometimes effective business strategy of Ford also build efficient customers relation
who engage with them for long term and they can serve appropriate services to them easily. Ford
build services ton their individual consumers ad these things build top values for them to survive
in market.
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CONCLUSION
From the above report it has been concluded that strategic analysis is very important for a
organisation to getting higher benefits an desired outcomes. This report is based on Ford which is
auto mobile industry and provide quality services to their customer.
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REFERENCES
Books and Journals
Laudon, K.C. and Traver, C.G., 2013. E-commerce. Pearson.
Zott, C. and Amit, R., 2013. The business model: A theoretically anchored robust construct for
strategic analysis. Strategic Organization. 11(4). pp.403-411.
Büyüközkan, G. and Çifçi, G., 2012. A combined fuzzy AHP and fuzzy TOPSIS based strategic
analysis of electronic service quality in healthcare industry. Expert Systems with
Applications. 39(3). pp.2341-2354.
van Wijngaarden, J.D., Scholten, G.R. and van Wijk, K.P., 2012. Strategic analysis for health
care organizations: the suitability of the SWOT‐analysis. The International journal of
health planning and management. 27(1). pp.34-49.
Walker, R.V., 2014. The energy-water-food nexus: Strategic analysis of technologies for
transforming the urban metabolism. Journal of environmental management.141.
pp.104-115.
Abraham, S., 2013. Will business model innovation replace strategic analysis?. Strategy &
Leadership, 41(2), pp.31-38.
Theißen, S. and Spinler, S., 2014. Strategic analysis of manufacturer-supplier partnerships: An
ANP model for collaborative CO2 reduction management. European Journal of
Operational Research, 233(2), pp.383-397.
Xu, H., Liu, Z.Z. and Zhang, S.H., 2012. A strategic analysis of dual-channel supply chain
design with price and delivery lead time considerations. International Journal of
Production Economics, 139(2), pp.654-663.
Aslani, A., Naaranoja, M. and Wong, K.F.V., 2013. Strategic analysis of diffusion of renewable
energy in the Nordic countries. Renewable and sustainable energy reviews, 22, pp.497-
505.
Barney, J.B. and Hesterly, W., 2015. Strategic management and competitive advantage concepts
and cases. Pearson.
Tijssen, R.J., 2012. Co-authored research publications and strategic analysis of public–private
collaboration. Research Evaluation, 21(3), pp.204-215.
Dutta, B. and Jackson, M.O. eds., 2013. Networks and groups: Models of strategic formation.
Springer Science & Business Media.
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