Ford Motor Company: Industry, Environment, Mission and Strategies - Research Paper Example

The environment in the automotive industry is rapidly changing and to a wide variety of forces. By far the most important forces all centre around what is probably the most serious issue for the automotive industry: concerns over oil. Gas prices have steadily increased over the past decade, and while they are not currently at record highs they are not far off from them (Gas Price Historical Charts). Government regulators are constantly pushing for tighter fuel economy regulation, while gas mileage is a prime concern for many consumers (Gas Price Historical Charts).

Consumers want higher and higher gas mileage out of cars which have relatively stagnant prices, making automakers need to find innovative ways to meet these green demands out of limited research and development budgets. Ford in particular is in a tough place in regards to needs of new green systems of travel. It has a long history of producing highly regarded but highly inefficient vehicles such as the F150 (Ford). It cannot afford to lose its tough, masculine image with consumers by adopting new technologies extremely quickly, as it cannot afford to sacrifice any utility or amount of power for the benefits of green technologies.

In this vein, Ford has built its relative success (as probably the most profitable American car company, and the only one which did not need a government loan during the recent recession) by slowly adopting new technologies rather than leading the pack, and by waiting for technologies to mature before attempting to put them on market. Ford’s hybrid strategy is a good example of their overall strategy in the current marketplace. The first hybrid car ford developed was an SUV, the Ford Escape Hybrid.

Ford bills this car as the “No-Compromise Hybrid” reinforcing that the company is only willing to accept green advances when they have no or minimal negative impact on performance and experience for the consumer (Ford). Ford, rather than make an ultra-fuel efficient Sedan hybrid, entered the hybrid market with an SUV that, while getting excellent fuel economy for an SUV (32 combined MPG) still had comparable gas mileage to much smaller cars. This demonstrates Ford’s commitment to maintaining their big, bold American image.

Ford’s entry to hybrid sedans likewise showed an unwillingness to adapt new technologies quickly and a proclivity to only using mature technologies. While the first major hybrid car, the Toyota Prius, went worldwide in 2001, Ford did not begin marketing its own hybrid sedan, the Fusion, until 2008 (Ford). Likewise, while their competitors Chevrolet and Nissan have recently released their first major plug in hybrids and full electric cars, the Volt and Leaf respectively, Ford still has announced no plans for either a plug-in hybrid or a fully electric car.

Perhaps going against much of the contemporary wisdom of the green movement, which says innovators will be highly rewarded, Ford has, in the past decade, focused largely on perfecting its own marketability while allowing other corporations to take risks and be early adapters. Ford is incredibly willing to wait for technologies to fully develop before implementing them into their fleets of vehicles, and thus attempt to maintain a reputation of reliability and stability rather than one of innovation.

They focus on maintaining their image as an American car company, unabashed at its large and powerful vehicles, while persistently exploring ways to adapt mature technologies to make their fuel efficiency higher without being willing to sacrifice anything.Sources"2012 Ford Escape | View Escape Features | Ford.com." Ford €“ New Cars, Trucks, SUVs, Hybrids & Crossovers | Ford Vehicles. Web. 14 Sept. 2011. ."Gas Price Historical Price Charts - GasBuddy.com." GasBuddy.com - Find Low Gas Prices in the USA and Canada. Web. 15 Sept. 2011. .