StudentShare solutions
Triangle menu

Ford Develops a Strategy for Competitive Advantage - Case Study Example

Nobody downloaded yet

Extract of sample
Ford Develops a Strategy for Competitive Advantage

The plan created a series of moves and tactics that reduce the costs of the company, while at the same time preparing a path that would ensure medium and long term growth by emphasizing in emerging economies. Key Marketing Issues Lower sales – Since the company lost nearly a quarter of its sales in 2008 the firm has to achieve continuous growth for several years just to recover the ground it lost in 2008. Global products – the organization wants to shift its company to emphasize in economical compact cars that will be accepted by customers worldwide Marketing campaign standardization – The firm seeks to make universal commercials, but factors such as culture can affect the buying decisions in customers from different parts of the world. Customer retention rate: The organization seeks to expand into other international markets and obtain similar customer loyalty as in its domestic market. Personal Case Analysis It is my opinion that The Way Forward strategy was a success because the company eliminated waste that was draining the resources of the company. By shutting down its least profitable plants the cost structure of the organization was reduced. Ford is the most powerful automaker in America. The reputation of the company improved when Ford did not take money from the governmental bailout package. The Ford Figa was an incredible product that increased the sales volume of Ford in India by more than three times. Other cheap model like the Figa must be designed to further exploit many emerging economies. Case Questions (1-3) Introduction questions Ford Corporation is one of the Big Three automakers in the United States of America. The company has historically achieved tremendous sales growth and profit for decades. The firm in the late 1990’s was considered the most profitable companies in America. This all changed in 2008 when Ford as well as thousands of companies in the United States and abroad faced the global recession. The car industry was devastated during this recession. General Motors and Chrysler nearly went bankrupt prior to the governmental auto bailout. In January 2009 the Obama administration injected $24.9 billion of the $700 billion bailout money in the dying U.S automobile industry (Amadeo). Ford Motors was the lone company that did not take the government handouts, but the firm suffered dearly losing over 23% of its sales between 2008 and 2009. 1. During the 2008 global recession Ford Motors decided to implement a new strategy called “The Way Forward” in order to boost the firm’s sales and restructure the company. The organization knew that the only way to stay profitable during recessionary times is to decrease costs in order to offset the effect of lower sales numbers. The organization realized that this could only be achieved by decreasing both fixed and variable costs. Fixed costs refers to costs that recurring each month whose amount are fixed such as building rents, managerial salaries, and business loans. Variable costs are periodic costs that vary in step with the output or the sales revenues of the company (Businessdictionary). An example of variable costs is direct labor. The Way Forward strategy included cost cutting initiatives such as closing down 16 factories and downsizing Ford’s workforce by 30,000 employees. The plan included a philosophical change in the managerial approach in order to focus more on the customer by designing cars that served their needs. The company realized that in a bad economy people are looking for gas savings. Despite the fact the company lost nearly 23% of its revenues, certain brands that were targeted as part of The Way Forward initiative had higher sales figure. The Ford Focus is ...Show more

Summary

The case discusses the trajectory of Ford Corporation right after the global recession of 2008. Ford implemented a new plan called “The Way Forward.”…
Author : robelbridgette
Ford Develops a Strategy for Competitive Advantage essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the case study on your topic
"Ford Develops a Strategy for Competitive Advantage"
with a personal 20% discount.
Grab the best paper

Check these samples - they also fit your topic

Tesco Competitive Strategy
In the present states of activities, the war on terror state of global and changing consumers' pattern it has become necessary for companies to be more responsive in their activities and operations to customers and other stakeholders (Bowlby 2001). Wonglimpiyarat, (2004).
6 pages (1500 words) Case Study
E-Business Case Study
Businesses in general and retailers in particular are experiencing varying degrees of success as they strive to incorporate Internet technology into traditional retail formats (Little et al. 2002). E-marketing is the antithesis of bricks and mortar of retailing.
16 pages (4000 words) Case Study
Competitive Advantage
It is the economic rent that makes most competitors imitates other companies competitive advantage thus it becomes impossible for any given company to sustain its competitive advantages a longer duration of time. However, a company can have some positions, strategies and processes that are hard to be copied by other companies.
8 pages (2000 words) Case Study
Marketing. Firms gain competitive advantage
Both FedEx and UPS use information technology recasting the process of management, providing powerful new capabilities to help managers strategize and plan, organize, lead, and control. Companies may decide not to automate, rationalize, or reengineer place functions, but logistics companies are forced to use the Internet and other technologies to conduct all their business, or a proprietary network.
6 pages (1500 words) Case Study
Analysis of Competitive Strategy
The airlines industry is fiercely competitive, with too many highly motivated players striving to deliver best value to the customers. Therefore, to achieve a clear differentiation from the competition requires a holistic approach. In its efforts to pursue a service-oriented strategy, BA cannot afford to confuse itself as a premium segment or a luxury airline.
8 pages (2000 words) Case Study
Strategic Management: Competitive Advantage
So to get a better understanding of the whole issue, we have decided to understand it by splitting it into five key areas. The first area deals with issue of Guajilote as prospective business center in the country. It asks our impression about the whole thing as business center.
7 pages (1750 words) Case Study
Sustainable Competitive Advantage of Lion Nathan
New Zealand Breweries became one of New Zealand's largest corporate companies in 1980s and became an Australasian business when it established itself in Australia in 1990. Its major presence in Australia was pushed by securing management control of Bond Corporation's brewing assets, which include the Castlemaine Perkins in Brisbane and the Toohey's Brewery in Sydney.
5 pages (1250 words) Case Study
Competitive Advantage Case Study
A cost advantage exists if the business organization delivers the same benefits but at a relatively lower price than competitors. On the other hand, a differentiation advantage enables a firm to offer a product or service that exceeds the benefit, value, or feature currently offered by the other players in the industry.
8 pages (2000 words) Case Study
Competitive Operational Strategy
It was hitherto catering to the aircraft industry, both civil and military. The present plan is to enter into the industrial products sector because of the low profitability due to the crisis in the aircraft industry. Hypergol Electronic Systems was formed in the year 1970 by the amalgamation of three main contracting firms catering to the defence ministry of UK.
12 pages (3000 words) Case Study
Competitive Advantage Case Study
According to Porter’s generic studies, ‘differentiation’ is when a firm seeks to be unique in the industry while ‘cost
5 pages (1250 words) Case Study
Hire a pro to write
a paper under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT
Comments (0)
Click to create a comment
Contact Us