An In-Depth Analysis of Ford's Business Development Strategies

This essay provides a comprehensive analysis of Ford's business strategies, focusing on its approach to global market operations. The introduction sets the stage by highlighting the challenges of running a global business and the importance of strategic planning. The main body delves into various strategies employed by Ford, including market penetration, product development, and market development at a global level. It also examines business-level strategies such as Porter's generic strategies (cost leadership and differentiation) and Ford's marketing strategies. The essay emphasizes how Ford has utilized these strategies to gain a competitive advantage in the automotive industry. The conclusion summarizes the key strategies and their impact on Ford's success. The essay underscores the importance of strategic planning for achieving business objectives in a competitive global market.

Individual Essay

Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Running business at a global level is not cup of tea, an organization has to work very hard
to sustain into the marketplace. All these organizations which are running and competing at a
global level have to use or follow up various strategies so that they can attain their decided goals
or objective with the help of these strategies. Strategies are the tactics or plans which an
organization decides for it, these tactics would help them in ascertaining about what and how
they can achieve their objective. The tactic or strategy applied into the operations help them in
attaining the competitive advantage. For reference purpose this essay has taken an example of a
company, Ford. Ford is an American multinational company which has engaged itself in the
business of manufacturing and selling the automobiles in the world wide market. The company
was founded in the year 1903 by Henry Ford. Ford Company serves worldwide except from the
few countries which includes Cuba, North Korea, Iran, Sudan and Japan. The products which the
company has to offer in the market includes Automobiles, luxury vehicles, commercial vehicles,
parts of automotives, sports utility vehicles and pickup trucks. Ford Company has the second
highest contribution into the market when it comes to automobile industry after Toyota.
This essay includes the different strategies which a company can use in maintaining itself into
the market place so that with the help of these strategies the company can attain their pre
determined goals and objectives.
MAIN BODY
Strategies are said to be a plan which is made to achieve a goal or an objective. In that
various tactics have been used by the organization which shows them the path and the way to
lead that path. Making the strategies is very much prerequisite for the companies as they help
them in achieving the competitive advantage (Arango, and et al., 2018). Forming the strategies is
for paramount importance for organizations because they help in:
Showing direction: The strategies form and show the direction to the organization in which they
could get the path and the direction which would lead them to the ultimate goal. As in the case
with ford, they had set an objective, for example, of launching a new car in the market place. So
to achieve that objective the company would form various process and steps which would lead to
its ultimate goal. For will opt the different advertising and marketing strategies that would help it
in achieving the task.
Confidence: When the company has planned the strategy about how it would it going to process
for its objective, then it gain some kind of confidence in its operations that if everything goes as
per the planed path they would achieve the goal definitely (Chen, Eshleman and Soileau, 2017).
For example the ford company has the objective to launch its new car and for this it has already
decided its strategy about how they would bring the product into market, advertising strategies,
supply chain strategy and so on. This would give them a confidence in their working and

operations that they can achieve this objective easily when they follow the strategic plan
properly.
Clarifies the threats and opportunities: Making the strategies clear all the threats which the
organization would going to face. Threats are the risks which an organization would face during
its process or journey and opportunities are the open door for the organization which would bring
them more growth and success in the market place. Forming the strategies would help the
organization in identifying the threats and opportunity associated with that, this enables them in
making the plans and changes accordingly.
Every company uses the combination or integration of various strategies to achieve their
objective. Same the Ford Company has performed. They also have uses various or different
strategies so that they can attain their desired position (Kitsios and Kamariotou, 2016). The
strategies which are used by the company are as follows:
Global level strategies: These are the strategies which the company used for growth at the
global level. The strategies which are formed in this category are applied to the whole market or
areas in which the company operates. These strategies may include
Market penetration: The Company Ford initially used the market penetration strategy.
In this strategy the company tries to sell its more products in its current market only with the
existing products. The company tries to perform more sales through creating a demand for the
same product in the market. They do so by increase the advertising and promotions methods in
the market, giving offers and discounts to the customers so that they get attracted towards the
products, giving some rewards or offers with the product and so on. Through such activities the
demand in the market for the product gets generated and a sale for the products gets increased.
As in the case with Ford Company, with the help of the above mentioned activities they try to
increase the sales in their current market (Kitsios and Kamariotou, 2019). They give some
discounts or offers on their vehicles provided to their customers so that they get attracted towards
the same. The company also performs such strategy by bringing an increase in their dealership.
They have tried to make their supply chain for transport more efficient way so that they can meet
the demand when it would get arise through the above activities. The strategy of market
penetration proves to be great success for the company.
Product development: Product development is the strategy in which the organization
develops a new product for its existing market. Here the market which is being targeted has not
changed only the product offered has developed. In such strategy the organization puts its
investment in its research and development sector so that they can come up with some new and
innovative product. When a company comes up with an innovative product into the market it
automatically gains the competitive advantage in the market and also hold the title for first
maker. The companies which would produce the same product after this new product would be
known as a follower as they have followed the products of the origin company and has not come

up with their own innovations. This strategy enables the company in maintaining its position
among the competition has bringing innovation is a must of any business. Bringing new product
enables the company in increasing its customer base also as the customers which were using
other brand product could also gets attract with the new product and shifts their preferences
(Laird and Lampe, 2018). As in the case with Ford company, the company has brought a lot of
new and innovation vehicles in the market for customers. Through these vehicles offered they
also have tried their best to attain the competitive advantage.
Market development: Market development is the strategy in which the company targets
for the new markets which it has not targeted or has put its step yet with the existing products.
This strategy helps the business in expanding their business activities and operations. As new
markets have been targeted in this strategy, the customer base for the company would get
increase as the customers for new market will join the troupe. As in the case with Ford
Company, it is a multinational global business. It has expanded its business by using its strategy
only and this has proven to be a great success for the company. For example if the company has
to expand its market and now has planned to target the markets of India, then it would bring its
exiting vehicles in the market of India. Here the company’s customer base would get increase
along with its sales as now they have more number of people to target with their products. To
adopt this strategy the company has to make the required changes in its system or operations like
it has to increase its production activity as they are targeting a whole new market, they have to
make the financial budget so that they would get clear about the funds which would be required
when to step in into a new place and the so on (Oldman and Tomkins, 2018).
Business level strategies: Business level strategies include which helps the company in gaining
the competitive advantage in the market. Some of these strategies include:
Porter’s generic strategies
This strategy was introduced by the Michael Porter. Through these strategies a company can gain
competitive advantage in the market. This framework comprises of 3 major strategies which are
as follows:
Cost leadership: Cost leadership is a strategy in which a company gains its competitive
advantage through providing or offering a low cost product to the customers. Here the company
seeks focus on how they can lower their production cost so that they can offer best possible low
price product to their customers. In this strategy the company gains the customers by gaining the
command at its price. But the product which is offered by the company would not focus on
seeking differentiation on the features which they have to offer. As in the case with Ford, the
company has produce the vehicle which already been brought up by other automotive companies
but the vehicle which the company has produced is comparatively of cost price when compared
with the prices of other competitive companies. Ford majorly put focus on its research and
development area so that they can bring advancements in its technology so that this will result in

the lower cost in production activity (Peng, 2020). With low production cost and more
production units, the company has effectively has acquired the whole market.
Differentiation: Here differentiation refers to making a unique feature in their product
which no other company has brought up in their product yet. Through this strategy the company
gains competitive advantage by making a difference in its product. As in the case with Ford
Company, they have manufactured some of the SUV’s vehicles and luxurious vehicles which are
very much different from the other company’s vehicle. The features which are provided in this
company are very unique and due to its feature only the customer gets attracted towards them
and makes a sale. But in the differentiation strategy the focus is seek at making the product or
service different and unique from the available competition and not on the lower cost. The
differentiation can be made through marketing strategies, product and technological innovation
in automobile industry. Ford has gained its differentiation also through its marketing strategy, it
has shown and portrait its product as the most reliable and safe for the passenger vehicles. Apart
from this the company also seeks differentiation through the fuel efficiency, environmental
impact and the passenger safety. It also has been noticed that the company also has differentiated
itself in its luxurious segment of vehicles.
Marketing strategy: The marketing strategy which has been used by the company is far
more different from the marketing strategy used by any other company. Through its marketing
the company portraits that its vehicle provides pure safety for its passengers and also has a
positive impact on the environment. Through its marketing activities it also shows that they are
different in their fuel efficiency power (Pucheta‐Martínez and Bel‐Oms, 2019). In short the
company from its marketing activities shows that the product is worth buying for the customers.
Corporate level strategies: These are the strategies which the company form to analyze about
the industry and which industry they step in. What would be beneficial for them in that industry
and what will not. In these strategies include:
Value: The Company has some resources through which it can create the value out of it.
The after sales services like insurances, vehicle service facilities and etc create value to the
company as they are actually very good and attract the customers towards them. The technology
which the company has brought up in its vehicle also is unique and generates the value in its
products. Apart from this the company also has very skilled and professional workforce which
has helped the company in attaining their predetermined goals and objectives. The talented
employees are considering as an asset for the company which brings the high productivity to the
organization. Also the supply chain for the company is also very effective that it satisfies both
the time and product utility (Sia, Soh and Weill, 2016). Time utility is satisfied when the product
reaches to the customers at the right time and product utility is satisfied when the right product is
delivered to the customers.

Rarity: Rarity here implies the resources which makes the company rare and unique
from other companies’ product. The innovative technology which the company has brought up in
their vehicles through the help of proper investment in Research and development area has
yielded the company with rarity. The marketing strategies which the company has adopted also
help it in gaining the rarity in its operations and identity. The rarer the resources of the company
would be the more competitive advantage it would gain in the market place. Apart from this the
professional employees which the company as hired has also enable them in gaining the rarity in
this competitive market.
Imitable: This means the chances or the percentage for the other organization to imitate
the resources of another company. The employee’s skills or the professional employees can
easily get imitable by any other company. Other companies can also hire the professional and
skilled employees into their organization who can bring an increase in their performance and
productivity level (Suoniemi and et al., 2020). Other companies also can bring innovation and
advancement in its technology by putting more efforts in its research and development sector.
Apart from this the supply chain which the company Ford is following can also get easily
imitable by any other company.
Organization: The Company Ford is capable to optimize its all resources in a very
effective and efficient way. The structure and system which the company has adopted is very
much flexible that it can absorb and also can adopt any change with is necessary to bring into the
system. Also the strategies which the company has tried to follow up are unique which has
enabled it in maintaining its own unique and different place in the market. Also the employees
whom the company has hired are very skillful who are integrating both the objectives, the
objectives of organization and their personal objectives, very clearly.
Departmental strategies: These are the strategies which are formed for gaining the competitive
advantage and growth in the departments which run in an organization. As the company ford
must have many department like finance department, marketing department, Human resource
department, and so on. To gain the success and to achieve the goal these department does make
strategies, such strategies are known as departmental strategies.
CONCLUSION
From the above essay, the strategies which the company Ford has follow up for
marinating its current position in the market place has been mentioned. The strategies may
include market penetration in which the company tries to increase its sales through its current
products and at its current existing market; market development, in which the company targets a
whole new market with its current products; product development strategies, in which the

company have tried to develop a new product for their existing market; marketing strategies, cost
leadership strategies, differentiation strategy and so on.
REFERENCES
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