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Ford Motor Company

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Ford Motor Company
Ford operates in the US auto mkt, a huge, but not a high growth market. Growth in last 7 yrs – 1%
US players losing share to foreign players.
Firms consolidating. Targeting smaller segments – large no of models, low sales volume / model
Focus on fuel efficiency, alternate fuels.
All firms targeting US mkt.
Chrysler merged with Daimler Benz, breaking off now. Focussed on clean diesel Power - BLUETEC
GM focussing on hybrid vehicles, tying up with Toyota.
Toyota caught up with Ford in sales volume. Good line up, safety and resale value. Options in hybrid variant. Hi quality and safest. INNOVATION is hallmark of Toyota.
Part suppliers spin offs from GM and Ford. Loss making, leading to labour issues.
Too many dealers. Low margins. Low scope for salesmanship due info on internet.
Improving public tpt.
High operating costs due to labour and excess capacity.
Ford going for better safety features, convenience through technology, better fuel efficiency. Sustainable tech and recyclable materials.
Designing websites for dealers. Financing and discount options.
Marketing in exhibitions, film and TV.
Problems Rising production costs, fuel costs, competition. Decreasing op margins. Agreements with labour unions.
Consolidating suppliers. Selling of PAG. Decrease influence of Finance Deptt to build competitiveness.
One Ford, work smarter, innovation in mfg processes, pdct design, mkting approach. Invest to upgrade plants. Don’t differentiate processes for different countries.

FORD needs to survive through growth and profitability.
Operating in a highly competitive industry with low differentiation that has seen large shifts in buyer preference. The societal and technological changes are impacting the market (alternate fuels, eco-awareness).
Core strengths are a strong brand name and mkt share.
Needs to adopt Best Cost Provider and Broad Differentiation strategy.
Control cost by:
Sorting labour issues, sourcing from cheaper locations, vertical

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