We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Ford Develops a Strategy for Competitive Advantage - Case Study Example

Comments (0) Cite this document
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.”…
Download full paperFile format: .doc, available for editing
Polish This Essay96.3% of users find it useful
Ford Develops a Strategy for Competitive Advantage
Read TextPreview

Extract of sample
"Ford Develops a Strategy for Competitive Advantage"

Download file to see previous pages 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 ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Ford Develops a Strategy for Competitive Advantage Case Study”, n.d.)
Retrieved from https://studentshare.org/other/1394580-case-analysis
(Ford Develops a Strategy for Competitive Advantage Case Study)
https://studentshare.org/other/1394580-case-analysis.
“Ford Develops a Strategy for Competitive Advantage Case Study”, n.d. https://studentshare.org/other/1394580-case-analysis.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
Competitive Advantage And Human Resource Strategy
Human resource management refers to the management of an entity’s workforce and covers all that pertains to the personnel. The scope of human resource management includes recruitment and selection of employees into an organization, orientation of the workers, managing their operations and behaviours, training, and developing them, reward and motivation as well as the task of retaining the employees.
9 Pages(2250 words)Essay
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
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
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
Current Strategy of Apple & its Competitive Advantage
In the early 1960s, the computer manufacturing companies were keen on developing collaborations or partnership with each other, so that the software and the hardware are compatible with each other. Later on, from 1980s many of the companies decided to diversify their business so that they both can be provided as a complete package.
6 Pages(1500 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
Let us find you another Case Study on topic Ford Develops a Strategy for Competitive Advantage for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us