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Ford Motor Business Analysis

Paper Type: Free Essay Subject: Business
Wordcount: 1527 words Published: 10th Oct 2017

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Ford Motor company is one at the world’s largest manufacturers of automobiles and the world’s largest producer of trucks. Under the leadership at the Henry ford, the company implemented the assembly lime method of mass production and made the cars affordable for middle-class consumers. Ford is the second largest vehicle maker in the United States based on overall sales, trading only general motors’ corporation. Ford’s subsidiaries include the Hertz corporation, the world’s largest car rental company, and the world’s largest provider at automotive financing. Ford markets vehicles under the brands of ford, Lincoln, Mazda, Mercury and Volvo.

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Ford introduces methods for large scale manufacturing of cars and large-scale management of and individual workforce using elaborately engineering manufacturing sequence typified by moving assembly lines. Ford is currently the fourth largest automaker in the world based on number of vehicles sold annually. In addition to the Ford, Lincoln and Mercury brands, Ford also owns Volvo cars of Sweden, small stake in Mazda of Japan and Aston Martin of England. Ford’s former U.K subsidiaries Jaguar and Land Rover were sold to Tata motors of India in March 2008.


  • Become the world’s leading company in the automobile products and services.
  • Production of the largest numbers of cars with the simplest design and for lowest possible cost.


  • Production of affordable vehicles for general public, with their mission, “put the world on wheels”
  • Commitment in providing outstanding product and service for a globally diverse family, with proud heritage.


  • Mass consumption of products with mass production, by increasing productivity.
  • Doing the right things for customers who are society, people and environment.

Five years strategy analysis of Ford

There has been a sales down

Ford motor company has applied different market strategy to maintain the position in new market for the current product. Ford continues to plan the special edition models of Mustang. Ford could put the next generation Mustang on the world market developed in Australia in around the 2012 or 2013. The fusion, which is now rides modified Mazda 6 platform, is likely to move to Fords global EUCD platform around the 2018 or 218 modal year.

Since a long, the Ford is focusing on gaining and maintaining competitive advantages in this hyper competitive climate during the difficult economic environment. It had now faced the downturn in its sales and lost in market shares in the global perspective market, comparing to Far East Manufactures such as Hyundai. The strategies it has been persuading are;

I. Differentiation:

Differentiation is the offering the products or services which are uniquely different from those of its competitors. The Ford is defining the new range of products with differential quality of fuel efficiency, technology and aesthetics. It is continuing to introduce eco-boost engines for environment safety, fuel saving technology, six speed transmissions across wide range of vehicles. It has adopted most top safety features (roll stability, break support radar) for more convenience in all of its brands (Flex, Escape, Lincon MKS and Mercury Mariner e.t.c). It has also evaded technology like Active park assistant, Navigator, sexy Body Style, Interior etc. Ford is still continuing to introduce the advance form of battery technology through vehicles electrification programs.

II. Cost Leadership:

This is a strategy where the organisation enables itself to provide the product and services at a cost less than any other competitors. Ford as the innovative company is persuading competitive pricing strategies to its products and services. Comparing to its major rival competitors like Toyota and Hyundai, Fords pricing strategies is competitive with reference to the new technologies that it incorporates. However, the decline sales data and the decreasing customer confidence have displayed the importance of restructuring the pricing strategy to gain competitive advantage against competitors. Therefore Ford is moving towards the virtual tie on pricing level with high quality gain, superior style and interior, and fuel economy technologies.

III. Focus:

This is the strategy where the organisation targets its product and services at a given sector of market with great accuracy and with deft of capabilities and knowledge to support its position in the sector. Ford is establishing global marketing sales and service operations to integrate and drive more consistent and compelling connection with costumer around the world. It is implementing the ‘One Ford’ marketing vision to enhance cost saving and higher quality communication. It is expanding the licensed merchandise around the world to enhance the Ford brand image. Ford is focusing on new global small cars, Fiesta, Fusion, mid cars and utilities to achieve the more balanced global portfolio.

The Ansoff matrix:

Various strategic models can be employed to analyze and make marketing decisions. The Ansoff Matrix is well known classic strategy building model developed by H. Igor Anssof. The purpose of this model is to analyse the organization’s approach to its product and markets. It plays an invaluable role in ascertaining whether an appropriate marketing strategy is being pursued and revels the possible, new opportunity.

i. Market penetration:

Ford with the wide range of product portfolio can look further penetrating its current market with its existing products. It is persuading strategies like ‘One Ford’ and ‘Global Marketing’ vision to provide high quality communication about its product and services. Its can further develop cost efficiency with quality and innovations to penetrate market all around the world. Due to relatively low risk involve in this strategy, the Ford Company can look forward to increase the substantial market portfolio by introducing new product features, competitive pricing and technologies.

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ii. Product development:

This strategy means absolutely new products to make them more suitable to known market. Ford is investing in new smaller fuel efficiency vehicles to achieve more balanced global product market. It is applying ‘One Ford’ marketing techniques to convey high level communication, and expanding licensing merchandise all around the world to capture new markets. Therefore, it is very essential to ford to enhance brand imaging to achieve competitive success. This includes integrating company’s marketing team members, global agencies and suppliers.

iii. Market development:

This strategy emphasis on expanding markets beyond those in which current products are sold. To enhance market development, Ford needs to understand the requirement and culture of the new market. The effective cost evaluation and perfect pricing is necessary with reference to its competitors. Therefore primary focus is need to be given on the quality in the minimum cost, in comparison to the competitors, to capture newer markets like China, India, Hongkong etc. The market entry risk is higher; therefore it is necessary to understand market behaviour.

iv. Diversification:

This strategy means new product to the new market. Ford is introducing the new products in coming year with global vision of ‘One Ford’. It is introducing ‘new small car’, plug-in-hybrids, battery powered vehicles and many more with smart technologies, economical and environmental friendly. Therefore it must consider on cost efficiency, reliability and its competitors activities. Due to high risk associated with this strategy, a great deal of market research is needed to be carried out before investing in new markets.

Above are the strategic options available to turnaround Ford into sustainable strategic options. The ford comparing to other competitors, it lacks clear assessment in its pricing strategies, despite of its quality and technology. In this current economic downturn, customers are lacking confidence, thus Ford need to take step to move forward with its smart technologies, style and affordability.


The Ford motor company is growing profitable global automotive company. It is streamlining and globalizing operations, to introduce more products that customer really want and value. It has aggressively restructured its operations to match production to demand, and it has shifted to a more balanced product line up offering the highest quality, safety, and value and fuel economy.

The hard work global team as positioned Ford to survive the current recession, and succeed to earn good amount of profit in the third quarter of 2009. Ford is undergoing to most rapid and far ranging transformation, so that it can lead into the future with great new products.


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