Strategic Management report on Ford | Report

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Added on 2020-01-28

Strategic Management report on Ford | Report

Added on 2020-01-28

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Strategic Managementreport on Ford

Table of ContentsINTRODUCTION...........................................................................................................................1Critical analysis of internal and external environment of Ford.......................................................1SWOT analysis............................................................................................................................1PESTLE analysis.........................................................................................................................4Assessment of Ford's current relative competitive position and advantage....................................4Porter's Five Forces.....................................................................................................................4Evaluation of current target market and identification of potential new segments.........................5Current target market..................................................................................................................5Potential new segments...............................................................................................................6Strategic options for Ford................................................................................................................6The most effective option for achieving sustainable competitive advantage..............................8Conclusion.......................................................................................................................................9REFERENCES..............................................................................................................................11

Strategic Management report on Ford | Report_2

INTRODUCTIONStrategic marketing means identification of sustainable competitive advantages that anorganisation has in market in which it serves and allocation of resources to exploit them. Ford isUS company that deals in automotive products in all over the world in luxury vehicles, leasingand service, etc. It is the fifth largest automobile industry in all over the world in which approx201,000 employees are working (Camara, Berthon and Dakyo, 2010). The present reportcritically analyses the external and internal environment of Ford by conducting SWOT andPESTLE analysis. It also assesses organisation's current relative market position and competitiveposition with the help of Porter's five forces. Further, it evaluates company’s current targetmarket, identify potential new segments and assess attractiveness of those segments or markets.Lastly, strategic options are generated for the organisation to achieve sustainable competitiveadvantage.Critical analysis of internal and external environment of FordFord motor company is second largest company of America who make auto maker products.Internal analysis means identifying and assessing strengths and weaknesses of the organisation.It is specific to a particular firm. On the other hand, identification and evaluation of opportunitiesand threats in the market are external analysis.SWOT analysis1. Strengths: One ford: In 2006, CEO of the company first look over strategy to streamline Ford'sglobal line-up of vehicle platform. They are also focused on higher quality of vehiclewhich they are produced (Ashby, Leat and Hudson-Smith, 2012). In order to developprofitability, the company has chosen improvement in fuel efficiency through diminishcosts. Ford also consolidated various number of platforms in each year after 2007.Loyalty – Major strength of Ford is its brand. They have continuous implement newbrand in automobile industry from 2014. They have taking top honours for overall loyaltytowards manufacturers. This is because, they have consumer blue oval shape that makeattractive brand in front of people. Excellent brand recognition – Ford has effective brand and recognition that createpositive impact on its operations. In this aspect, they are determining high quality1

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material products and services that attract many customers towards the enterprise(Reimann, Schilke and Thomas, 2010). Well managed operations – Ford is huge when it comes to operations. They are regularlymanaged around 20000 cars. Thus, it can be said that there is excellent operation assist toenhance productivity.Finance arm - Ford’s credit remains with competitive advantages for the automobileindustry. It mainly generates around pound 1.9 billion in 2014 which is end with pound1.7 billion of net income. Healthy Ford is determines overall pre-tax profits that developsnet income around 3.2 billion. 2.Weaknesses :Luxury – It is being continuous increasing that is more important for auto maker fordeveloping successful global brand which increase average transaction price and profitmargin. Ford is Lincoln brand has struggled many years. Lincoln sales cut around halffrom 1,90,000 units within the US. Intense competition – Within the market, intense competition create low market share.Therefore, Ford has limited market share that create adverse impact on its operations andfunctions (Galliers and Leidner, 2014). Customer has many options - Within the market, there are various businesses take place.Thus, customers has many options to purchase products from different businesses. Itcreates high competition within the market that not be beneficial to attain overall growthby Ford.3.Opportunities :Purchasing power is increasing – The purchase of automobile is increasing year on year.They have become a necessity and various schemes such as loan option; finance optionhas made purchase easier for the customers. In addition to this, Ford can also developtheir plan for ascertain overall profits and revenue at workplace.Acquire skills and competencies through acquisition - In order to fulfil its prospectivegoals, Ford will have to develop new competence in the battery technology, digitalizationand autonomous driving. The cheapest and fast method of doing so is throughacquisitions of small start-ups which have already developed the skills and technologyneeded for Ford (Subramanian and Ramanathan, 2012).2

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