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FORD MOTORS is the world's third largest motor vehicle manufacturer and a global automotive industry leader based in Dearborn, Michigan. It manufactures and distributes automobiles across six continents. With approximately 201,000 employees and 90 plants worldwide, the company's automotive brands include Ford, Lincoln, Mercury and Volvo. The company provides financial services through Ford Motor Credit Company.
Ford Motor'S Current Competetive Strategy:-
1) FORD MOTORS provides retail customers with a range of after-the-sale vehicle services and products through its dealers, networks and other channels, in areas such as maintenance and light repair, heavy repair, collision, vehicle accessories and extended service warranty.
2) It provides financial services which primarily includes FORD MOTOR CREDIT, which includes financing related to buying of vehicles, leasing and insurance to the vehicles.
3) Its training and development strategy is based on developing a highly skilled workforce motivated to continuously improve the business through the integration of off the job training with on the job learning, lifelong learning and continuous professional development for all.
4) It has direct access to government funding for skill development and accountability for achievement, and value individual differences and diversity.
5) In reflection of this FORD MOTOR CREDIT has an NES contract with the LSC and was one of the first employers to sign the skills pledge.
6) FORD MOTOR CREDIT has created a revolutionary “Skills for Life” strategy to help achieve the business's main objective of surpassing competition through reduced costs.
7) The inclusive and barrier free approach develops a skilled workforce motivated to continuously improve the business as well as safeguarding employment opportunities now and for the future.
8) FORD MOTORS are also developing their research and development in the field of increased driving safety through auto accident avoidance technologies.
9) FORD MOTORS holds a strong engineering capability, extensive dealer network, and high employee productivity which are the strengths of the company.
10) FORD MOTORS gives an opportunity to its customers like increasing demand for the hybrid electric vehicles, growing potential needs and growing more truck markets.
The Top Two Competitors Of Ford Motors:-
General Motors is primarily engaged in the development, production and marketing of cars, trucks and automobile parts. The company is also engaged in finance and insurance operations. The company primarily operates in North America, and Europe. It is headquartered in Detroit, Michigan and employed about 243,000 people.
General Motor'S Current Competetive Strategy:
1) General Motors attempts to balance the social, environmental and economical aspects.
2) Increased production of fuel efficient and vehicles and energy saving technologies.
3) Their vision is an environment that naturally enables General Motors employees, suppliers, dealers, and communities to fully contribute in the pursuit of total customer enthusiasm.
4) Their values address the issue most directly by aligning with one of our core values: individual Respect and Responsibility.
5) Rationalization of brands, models and retail outlets.
6) Reduced wage and benefit cost, including further reductions in executive compensation.
7) Significant capital structure restructuring and further consolidation in manufacturing operations.
8) In addition, Co. also sells cars and trucks to fleet customers, including daily rental car companies, commercial fleet customers, Leasing companies and governments. As of Dec 31 2007, Co. operated through two businesses, consisting of automotive as well as financing and insurance operations.
9) Re-focused our marketing efforts to emphasize the strength and value of our products and brands, cut incentives, reduced low-profit daily rental sales, introduced the industry's best power train warranty coverage and worked to consolidate our Buick-Pontiac-GMC distribution channel. These actions have enabled us to stabilize our U.S. retail market share, improve average transaction prices and residual values, and reduce dealer inventories, despite challenging market conditions.
10) Continue to pursue our advanced propulsion technology strategy with all the urgency we can muster, driven by the need to reduce oil imports, oil consumption and CO2 emissions around the world.
Chrysler Group designs, engineers, manufactures, assembles and sells cars and trucks under the brand names Chrysler, Jeep, Dodge, Ram Truck and Global Electric Motorcars. It also provides automotive parts and accessories under the brand name Mopar. The group primarily operates in the US, Canada and Mexico. It is headquartered in Auburn Hills, Michigan.
Chrysler Motor'S Current Competetive Strategy:-
1) Chrysler Company, introduced the next generation of gas-free and emission-free, battery electric vehicles in 2008. In the same year, Chrysler partnered with ZF Friedrichshafen to form a new axle manufacturing alliance, to access the advanced axle technologies.
2) The strategy used by the company is very simple and easy.
3) The company is sticking to its core and maintaining the product line following through on an aggressive product development program.
4) The company mostly focus on quality and luxury in their products as per the needs of the customers in the market.
5) The company also continuously improving their operations and developing their international markets and reducing costs of their products in the market to gain the vast market throughout the world.
Share Of Each Industries In The Market:-
The below graph of revenue on sale shows that FORD MOTORS'S sales are increasing and the sales of GENERAL MOTORS and CHRYSLER are decreasing for the financial year 2009.
Future Plans Of The Big Three:-
1. FORD MOTORS will be considering a new compact MPV based on the Fiesta platform, which could be assembled at Ford's plant and go on sale as early as 2011. The Fusion will undergo a change for the 2010 model and will see the introduction of a hybrid version. The Taurus will go in for a major update early next year and adapt many of the new features. The car will get a much sleeker look. The next-generation Mustang was meant to be developed on Ford's new global RWD platform but if the project is dropped the new model will retain its current platform. The Escape replacement is expected to be slightly smaller and more fuel efficient than today's model and will be launched in 2012.
2. General Motors are also trying to launch the hybrids, plus fuel efficient diesels and gasoline engines. GM will lead the way in fuel innovation. GM will launch the ground braking Chevrolet Volt, which can travel up to 40 miles on electricity alone. We are also planning other vehicles using volts extended-range electric drive train. By 2012, more than half of GM vehicles will be flex-fuel capable. GM has already put more than three million flex-fuel vehicles on U.S. roads
3. Chrysler have Plans to line up partners to develop small cars. Says it will market an electric car in 2010 and spread electrics through existing line up. Chrysler will be the first vehicle industry to offer customers with 5 different technologies to save fuel and reduce green house effects. The RCP system will warn driver from accidents or any vehicle approaching towards it.
Vulnerabilities Of The Big Three:-
1) Poor financial performance.
2) Sluggish performance in geographic regions.
3) Poor cash flows.
4) Weakening of global automotive industry due to recession in 2009.
5) Intense competition.
1) Inadequate liquidity.
2) Weak performance of key business segments.
3) Low debt ratings.
4) Weakening of global automotive industry due to recession in 2009.
5) Intense competition.
1) Lack of diversification.
2) Feel the need for renovation of old methods to stay competitive.
3) Weakening of global automotive industry due to recession in 2009.
4) Intense competition.
Porter Competitors Analysis Criteria Of Ford Motors:-
After the recession effected the automobile industry the big three i.e. FORD MOTORS, GENERAL MOTORS, and CHRYSLER MOTORS were badly affected by the recession in the year 2009. Except FORD MOTORS the remaining two companies almost lost everything and became bankrupted. Out of the three companies' only FORD MOTORS was able sustain the recession somehow. GENERAL MOTORS was aided by the United States government to become active again. In 2010 the big three companies are concentrating more on technological advancement like introducing hybrid and electric cars which can cost cheap and emits less CO2, which means environment friendly and cost effective cars. As of the financial and revenue reports and other annual reports of all the three companies shows that GENERAL MOTORS and CHRYSLER MOTORS are losing market and their sales and profits are decreasing for the financial year 2009. But where as for the FORD MOTORS it is quite opposite, the sales and profits have increased to 80% and the market is growing more and the company is expecting more sales for the financial year 2010.