Strategy

docx

School

University of Florida *

*We aren’t endorsed by this school

Course

6269

Subject

Management

Date

Apr 3, 2024

Type

docx

Pages

Uploaded by MegaBison4254

Module 1 1. Porter's Five Forces model is used to analyze the competitive dynamics of an industry, assessing its appeal and potential profitability. The model considers internal rivalry, entry barriers, substitutes and complements, supplier power, and buyer power. Internal Rivalry Intense competition exists among existing auto competitors, including Ford. They vie for market share through pricing, innovation, and brand reputation. High fixed costs often lead to price wars and aggressive marketing strategies. Entry The auto industry has high barriers to entry due to the significant capital required for manufacturing, distribution, and marketing. Established brands like Ford benefit from economies of scale, making it difficult for new entrants to compete. Strong customer loyalty further deters new players. Substitutes and Complements Substitutes for automobiles include public transportation, biking, and ride-sharing services. However, owning a car remains a necessity in many areas due to limited public transportation options, benefiting companies like Ford. Supplier Power Suppliers of raw materials and technology to Ford and other automakers wield moderate power. While numerous suppliers exist, automakers depend on them for quality components, giving suppliers some leverage. Buyer Power Buyers in the auto industry, including individual consumers and fleet buyers, have significant power. They can choose from various brands and models, compelling automakers like Ford to differentiate their offerings through pricing, features, and quality to attract buyers. 2. Several changes in the macro environment could impact Ford and the auto industry – including technological advancements and environmental regulations. Technological Advancements Technological advancements like the addition of electric vehicles, autonomous driving, and connectivity features are changing the competitive landscape. Ford has introduced several electric models, including the Mustang Mach-E SUV, F-150 Lightning, and E-Transit van – and has confirmed more electric cars are on the way (Wayland, 2024). The Detroit automaker is currently considering changing its EV plans – determining whether to vertically integrate the production of batteries. Lately, the company has had a difficult time with EV sales.

The development of autonomous vehicles has the potential to revolutionize the auto industry by improving road safety and enhancing mobility for people with disabilities. Ford is investing in AV technology through its Ford Autonomous Vehicles LLC subsidiary and partnerships with tech companies. Currently, regulatory challenges, safety concerns and consumer trust are barriers to widespread adoption (Ford Creates ‘Ford Autonomous Vehicles LLC’; Strengthens Global Organization to Accelerate Progress, Improve Fitness 2018). Connectivity and safety features, like in-car infotainment systems and vehicle-to-vehicle communication, have become increasingly important to consumers. Ford’s SYNC Connect system and the FordPass app are examples of how the company is enhancing the driving experience. From starting your car remotely to checking fuel levels, these features can boost convenience, but at the same time, raise concerns about customer privacy (Baures, 2020). Environmental Regulations With increasing concerns about climate change, governments worldwide are implementing stricter emissions standards. Ford is facing the challenge of meeting these regulations while also meeting consumer demands. Ford has invested heavily in developing more fuel-efficient engines and transitioning to EVs. Ford has committed $30 billion in electrification by 2025. Meeting these regulations will be difficult for Ford, but at the same time, the move will present opportunities for growth and innovation, securing the company as a top contender in the auto field (Boudette, 2021). Module 2 1. Ford has both competitive advantages and disadvantages in the automotive industry. Advantages  Strong branding: Ford is widely recognized in the automotive sector, known for manufacturing dependable, safe, and innovative vehicles. The brand embodies qualities like performance, durability, and affordability.  Diversified product portfolio: Ford’s diverse product portfolio, ranging from cars and trucks to SUVs, electric vehicles, luxury vehicles, and commercial vehicles, caters to a wide array of customer needs and preferences. This broad range enables Ford to attract a diverse customer base.  Innovation: Ford has introduced groundbreaking products and technology over the years, pioneering advancements in electric and hybrid vehicles, as well as autonomous driving technologies, keeping the company ahead of the curve and staying competitive (Review, 2024). Disadvantages  Dependence on the North American market: Ford has traditionally derived a substantial portion of its profits from the North American market, particularly from the sale of trucks and SUVs. The dependence makes Ford vulnerable to economic downturns or market fluctuations in the U.S.

 Significant number of recalls: Ford has dealt with numerous recalls over the years, from software glitches to hardware failure. Recalls can damage the brand’s reputation.  Brand perception: While Ford does have a strong brand, it faces challenges from its competitors in the luxury and electric vehicle segments. This could limit its growth potential compared to competitors with a stronger presence in these segments (Admin, 2023). 2. Imitating Ford’s distinctive qualities would require competitors to overcome significant barriers related to brand reputation. Module 3 1. XX 2. XX Module 4 1. While Ford does focus on cost efficiency and competitive pricing, the company can be considered a global broad differentiator. Ford primarily differentiates itself in the market through brand reputation, product innovation, and technology. The auto maker’s strong brand reputation for quality and reliability differentiates itself in the market and helps attract customers. Ford’s emphasis on developing innovative vehicles – like electric and autonomous vehicles – sets it apart from competitors, allowing it to charge a higher price. Module 5 1. 2. Historically, Ford was one of the first companies to vertically integrate. In 1928, the company controlled its entire production process. “The company owned rubber plantations, timberland., and transportation for the raw material, and produced almost every part for its cars,” (Ross L. Fink, 2023). In turn, Ford reduced costs and had greater control over its production process (Riani, 2023). Today, Ford relies on outsourcing and partnerships to meet its manufacturing and supply chain needs. Wayland, M. (2024, February 7). Ford is reassessing its EV plans, including Vertical Battery Integration . CNBC. https://www.cnbc.com/2024/02/06/ford-reassessing-ev-plans- including-vertical-battery-integration.html Ford Newsroom. (2018, July 24). FORD CREATES ‘FORD AUTONOMOUS VEHICLES LLC’; STRENGTHENS GLOBAL ORGANIZATION TO ACCELERATE PROGRESS, IMPROVE FITNESS . Ford Creates “Ford Autonomous Vehicles LLC”; Strengthens Global Organization to Accelerate Progress, Improve Fitness | Ford Media Center. https://media.ford.com/content/fordmedia/fna/us/en/news/2018/07/24/ford-creates-ford- autonomous-vehicles-llc.html

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

Baures, L. (2020, April 13). What is fordpass & how to activate sync connect . Trusted Auto Professionals. https://tap.fremontmotors.com/what-is-fordpass-how-to-activate-sync- connect/ Boudette, N. E. (2021, May 26). Ford will spend $30 billion on electric vehicles, a big increase from earlier plans. The New York Times. https://www.nytimes.com/2021/05/26/business/ford-electric-vehicles.html Review, H. B. (2024, January 5). Ford (F): Porter’s five forces industry and competition analysis . Hivelr. https://www.hivelr.com/2023/05/ford-porters-five-forces-industry-and- competition-analysis/ Admin. (2023, August 15). Ford SWOT analysis - The strategy story . The Strategy Story - Simplifying Business Strategies. https://thestrategystory.com/blog/ford-swot-analysis/ Ross L. Fink, Ph. D. (2023, July 13). Ford’s return to Vertical Integration . OM in the News. https://ominthenews.com/fords-return-to-vertical-integration/ Riani, A. (2023, April 3). 6 innovative practices in the early 20th century that skyrocketed the Ford Motor Company to Success . Forbes. https://www.forbes.com/sites/abdoriani/2023/03/31/6-innovative-practices-in-the-early- 20th-century-that-skyrocketed-the-ford-motor-company-to-success/?sh=3277fb651889

Related Documents

Screenshot 2024-02-05 at 6.13.41 PM.png

Chapter 4's 1st 3 Case Solution.docx

Week 1.2 Equity & Insufficient Accommodations Case Study.pdf

Chapters 17, 18, 19.docx

Classical organization theory.pdf

HRM Current Affairs Assignment paper.docx

Group5_GA#1.docx

Five Elements.docx

hybrid remote work.docx

Deming's Points Assignment.docx

Whirlpool Case Study Analysis.pptx

5-3 Midterm short paper.docx

Recommended textbooks for you

Purchasing and Supply Chain Management

Operations Management

ISBN:9781285869681

Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:Cengage Learning

Marketing

ISBN:9780357033791

Author:Pride, William M

Publisher:South Western Educational Publishing

MARKETING 2018

Marketing

ISBN:9780357033753

Author:Pride

Publisher:CENGAGE L

Principles of Management

Management

ISBN:9780998625768

Author:OpenStax

Publisher:OpenStax College

Foundations of Business - Standalone book (MindTa...

Marketing

ISBN:9781285193946

Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor

Publisher:Cengage Learning

Foundations of Business (MindTap Course List)

Marketing

ISBN:9781337386920

Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor

Publisher:Cengage Learning

SEE MORE TEXTBOOKS

Recommended textbooks for you

Purchasing and Supply Chain Management
Operations Management
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Cengage Learning
Marketing
Marketing
ISBN:9780357033791
Author:Pride, William M
Publisher:South Western Educational Publishing
MARKETING 2018
Marketing
ISBN:9780357033753
Author:Pride
Publisher:CENGAGE L
Principles of Management
Management
ISBN:9780998625768
Author:OpenStax
Publisher:OpenStax College
Foundations of Business - Standalone book (MindTa...
Marketing
ISBN:9781285193946
Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Publisher:Cengage Learning
Foundations of Business (MindTap Course List)
Marketing
ISBN:9781337386920
Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Publisher:Cengage Learning