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Ford Company Strategy Analysis

1884 Words8 Pages

Executive Summary: This report provides an analysis and evaluation of different strategies of Ford Company. In this report we have discussed about Ford’s competitive strategy, corporate innovation and growth strategy, company’s motivation for growth and portfolio. Different methods are used for different analyses. For competitive strategy analysis porter’s generic strategies are used, for analyzing the motivation for growth Resource base view is used, for corporate innovation and growth strategy Ansoff matrix has been used, for portfolio analysis BCG growth share matrix has been used. All data are based on the data collected from different websites and book. Firm Summary: Ford is a global automotive company founded by Henry ford. It was incorporated …show more content…

Ford’s future growth depends on how company is directed at increasing market share in domestic and international markets. Increase globalization – Ford wants to seize market share in developing nations. Ford international strategy has been successful in China, but has been weak in Europe due to the economic condition of the region. This industry is subjected to government policies and regulations, for some companies it might benefit for others it might not to encourage to expand into foreign market. Due to this weak European performance, ford had to re- strategize their plan by shutting down a few plants to save on high industrial costs. There is also a threat associated with this move as there been high fluctuations in exchange rate in the recent past. Low labor costs in developing nations also provides motivation for automotive firms to establish plants, provide employment to people and improve the economic region that country. The automotive long term growth is expected to increase due to increase in demand and increase in …show more content…

By using the Ansoff Matrix we can say that Ford used the market penetration strategy and product development strategy to drive growth. Since long, the Ford is focusing on gaining and maintaining competitive advantages in this hyper competitive climate during the difficult economic environment. It had now faced the downturn in its sales and lost in market shares in the global perspective market, comparing to Far East Manufactures such as Hyundai. Ford is focusing on Improving sales of the existing products by providing better features, newer technology and enhancing safety standards. They are competing in automotive market with core focus on profitability with existing products. Quality is fords prime objective with continuous improvements commencing from design and manufacture to sales and service on a regular basis. BCG Matrix: There are four quadrants: Dogs, Question mark, Cash cows and Stars. Dogs: Low Market Share & Low Market Growth The dog matrix describes parts of the company that are not doing well. It is very difficult to make profit as the market is very weak. Unless there is no strategy in place for this sector, it should be liquidated. Ford US: Ford Taurus, Land Rover & Jaguar Cash cows: High Market share & Low Market

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