Ford motor

Published: Last Edited:

This essay has been submitted by a student. This is not an example of the work written by our professional essay writers.


ASAD was formed by a group at farmers from Yorkshire who formed associated Davies, which in 1965 became Asda. It is now the second largest


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.

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.


Ø Become the world's leading company in the automobile products and services.

Ø Production of the largest numbers of cars with the simplest design and for lowest possible cost.


Ø Production of affordable vehicles for general public, with their mission, “put the world on wheels”

Ø Commitment in providing outstanding product and service for a globally diverse family, with proud heritage.


Ø Mass consumption of products with mass production, by increasing productivity.

Ø Doing the right things for customers who are society, people and environment.

Five years strategy analysis of Ford Motor company

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;


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.

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.

Product Portfolio:

Ford Company have different product under different brand. The ford, Lincoln, Murcury, Mazda, Volve , Jaguar , Aston, Martin and Land Rover have different position in the market. The brand can be take in consideration of it development in different product portfolio model. They are:

Ans off's Matrix

BCG Matrix

Ans off Matrix:-

Various strategy models and tools can be employed to analyze and make marketing standard for capability, reliability and quality, ford is now offering even more truck for the money with the new 2004 F-150- including unsurpassed fuel economy.

Market Development Strategy:

Ford motor company has applied different market strategy for the maintaining the new market position in new market for the current product. Ford continues to plan the special edition models of Mustang. The Shelby GTSOOKR will goon sale in spring 2008. A built in model also planned sometime in 2008. Ford could put the next generation Mustang on the global rwd platform being developed in Australia around the 2012 or 2013. The fusion, which is now rides modified Mazda 6 platform, is likely to move to frods global EUCD platform around the 2018 or 218 modal year. The north American from and BCG uropean madeo are likely to become are global uehicle , with local market tweaks.


Frod mator company is that which try to developnew product and expand the product in new market area for this the company have to face the different risk for eg. 4th September 2009. Ford motor indoresia (FMI) , Jakarta has recently opened a new us $500 million passenger car plant at their joint uenture manufacturing facility , autoalliance Thailand (AAT), in Rayong, Tailand. This additional investment and expansion program of this global manufacturing hud was announced in 2007.At the at ramadhan Jakarta police for sales 600 ford focus vehicles and 591 Ford rangers and will be developed in 2009.This seems positive supports towards the product from customers.Indonesia the great quality at vehicles and services are provided for the customers.FMI is preparing to welcome the fiestia in 2010.


BCG (Boston consulting Group) is produced by the Harvard Business school,portfolio Management based on market growth .BCG matrix is use to prioritize opportunities and get the best return or company effort.Under this model.Ford motor companys brand can be measured and valued properly.This helps to know the actual position of the company.


Accordingto the BCGmodel the ford motor company Mustand brand growth is in the top position which have high market share and profit.Mustang remains the number one sport car by a wide margin, with the new 2010 model driving showroom traffic.In april. Mustang had a 40% share of the retail sports car segment.

Cash cow

Cash cow shows the high market share and low market growth motor companysbrand are profitable and reliable.The product development costs are relatively motor company product are focused for economic class people so it has high market share get low growth rate.

Question marks

Ford motor company have the law market share and high mix growth rate. There are more competitive for this types at market or product. The product is sale in less number for the selective people or area. For example Ferrari which is high price car for high class people. So that the product should be product with carefully .The loss mistake in decision making create more problem.


In these characteristics the market share and market growth rate is low. The product in this characters market is existing for doing competition to the competitors products. Ford motor company brand Jaguar and land Rover had faced the problem and connate generated profit at 2006, to early at 2008 but finally the Ford motor company sale the brand to Tata company on 2008 march. Ford motor company sales its brand or liquidate too solve the financial difficulties.

Posters generic strategies

Michael Porter has described a catagory of scheme which consist of three general types of strategies to maintain and achieve competitive advantages in the business which can be achieve by core competency product differentiation strategies and product cost. The strategies based as product differentiation, cost leadership and focus.

Product differentiation

Differentiation is aimed at the bread market that involves the creation of a product or services that is perceived through out , dealers ,networks or customers and increase the loyalty of buyer product differentiation is helpful to complete successfully. It creates a better barrier. For example ford motor company combinations at auto manufacturing and financing .It has differentiated on vehicles development and engineering control.


This strategy emphasizes efficiency. The product are produced in high or mass with economic which is available for consumer to a very large base. To compete with competitior the mass production helps to lower the cost and lead the market .For example Ford motor company have to maintain a low cost base by controlling production cost ,increasing their capacity utilization, controlling material supply or product design, work force dedicated for low cost production ,less spending on marketing helps a company lower the cost .which is support for cost leadership.


On this strategy business firm or company concentrates on a select few target market .It target the certain age group , class people for the better market .It is also called segmentation strategy or rich strategy. A focus strategy should target market segments that are less valuable to substitutes or where a competition is weakest to earn above average return on investment .For example Ford motor company focused named a top campus car as consumers seek back to school values.(which have features such as

Persistent Belt minder chime.

Limited vehicle top speed of 8mph

Tractium control system that limits tire spin and that cannot be deactivated

Audio system mute.

Which focus on standard SE, SEG, and SEL frim levels is a perimeter alarm system to discourage vehicle theft and tampering. To help encourage safer driving among younger customer or roommates borrowing the cars ,focus add the my system.


In conclusion Ford motor company is suffered by lack of proper management .The Ford company had sell its brands Jagaur and land Rover to Tata motor company on 2008.The company cannot focus its particular area and differentiate product to compete the competitiors. Ford motor company have to apply different marketing strategies and analysis the product portfolio o know which area of the company is better and what technique or strategy should be apply for product development. Ford motor company have to focus the target market by doing product portfolio analysis achieve good market position.

The marketing mix is very and very popular term in the marketing context. they also refers as 7c's of marketing ,The emphasis should be on the consumer when evaluating the 7c's.The following are main components of the marketing mix.


It is necessary to place more emphasis on organisation of the industry.It is necessary to execute marketing plan's with the industry's tackle the competitor the industry have to focus on internal communication.BA (british Airways )have to face different challenge with other quater Airways ,Jet airways etc.they are providing good services with proper management of internal communication.


For airline industry the commodity relates the services provide by industry .the current business world is becoming wide in which for a single business there are different industries.They provides different services to the consumerfor attacking.for example jet airways provides good food time and flight and better service quality.

Cost plays vital role to service in the environment .the cost of industry is law and can generate profit .the industry can service for the airline industry .the cost of operating business activies should be lower and fear at the ticket to the customer must be lower .for example je airways gives heavy discount on the occasion of crixmax which support for competition in the market .so as the uk airline industry have to follow the different way to attack customer.they have to gain their consents through the sufficient.


Communication helps to make the environment clear. the plan and policies of the airline industry of UK have to be communicated to all level of employees .better communication is the key for success .so Saudi airways industry have good communication by which at the time of difficulty also service. so that british airway have to improve in communication networks.


Channels help to make business wide and make good link with customer at different countries .it helps in conjuction with the uncontrollable external circumstances. for UK airline industry they have to improve their relation with different countries channel to get relief from the environment impact.To adjust in the changing current environment BA have to focus on channel improvement.


Consumer are the service seeker the main target of any industries are satisfy the consumer or customer airlines have to focus on different areas of marketing .to get success the market ,airline industry have to focus the certain target consumer of market .BA focus on high class people only so that it have to target to the middle class and economical group of people also .like other airlines industries the BA have to maintain its consumer relation in proper ways .BA have to consider on needs ,wants ,security and education.


Circumstances refers the area where the organisation operates or do its activities .the circumstances are national and international ,weather ,social and cultural and economic .the BA have to take proper or deep analysis for the circumstances of market.This will help for the betterment of airlines industry of UK.



Tthe environment of business is changing the consumer are the key point .the industry and organisation are in large number to satisfy the needs of to compete in the competitive business they have to focus on different marketing mix .the marketing mix gives proper guideline to solve the impact in the industry .The UK airline industry have to compete with competitor by improving internal communication using different commodity with maintaining cost and good communication .for this better channel to link the consumer in circumstances of business market.


Brand is the signature and identity of the product .the brand is that which is easy to remember and pronounce /the brand is mark for the identify of product the brand is labelled for the easy identification by the consumer by its name and feature of the company's product .the brand is the name of original producers .now a days their product are stored at a place like argos ,carry house etc.from different manufacturer and sales the brand in the private label at the sellers.for example sony camera sale by carry's house .the customer say's that they had buy camera from carry's house.” If you look at your business in terms of capacity ,making private label items is average attractive option for the producer,” adams said attractive option for the producer labelling is more profitable to the that the private label should be produce more.for the famous brand like sony ,the markeing mix 4ps can help to know the advantages of private label.


A constantly involving product development strategy should be developed which is influenced by the trends in the market .total quality management (TQM) product should be accordingly to the demand of that they don't have to worry

About the sales the private label sector helps sales


The product produced by the famous manufacturers have high price but the market of united kingdom is a very price sensitive. competitiors try to attract customers by price comparasion which show they are cheaper than the other product. sony has to survive in such an environment where it focus on quality makes it difficult to match competitiors . in such a situation private label helps to use various pricing strategies where certain products are priced lower to attract customers and other sony products a little higher to make up the differences also competitiors tends to negotiate purchasing cost.


Places also plays vital role for making profit of manufacturer. The private label organisation are different part of uk by which the goods or the product produced by the famous manufacturer such as sony can be easily available to the hand of customers .now a day more customers want to get more easy life .so they want easily available of product which they need. so private label organisation helps to make easy assessable product of sony at any place .so private label lorganisation is beneficial to the manufactures .by the help of this sony can require larger market share.


Promotion is the key factor which helps to make aware o product .customer are the main stream of promotion by which the product will be known by all. promotion activities indicates advertising and different activities .to attract the customer promotion plays a vital role .for example the sony company product will be sales by the carry house giving many price cut scheme. and giving advertise in different media for availability of the product by maintaining different features and quality of the product .to lead the market promotion plays a vital role. For this private label company support for the challenge to the market.

At ancient time the market was product oriented in the middle age the market was service oriented but nowadays the market is about knowledge .the person or company which have proper knowledge they can be sell easily in the market .such

That the evaluation of private label is due to the knowledge ,customers are knowledge oriented so they want different from others.

Bing a famous manufacturer sony can't reach each and every person hand but the private label company such as ARGOS and CARRY can make available of each and every person's or customers hand .they are the demand of the time and environment which cannot be replaced by any famous manufacturer such as sony ,that sony company have to cooperate with such company and manage the total quality and make available of product in the hand of customers.

The Sony manufacturer have to make own typical type of quality and cooperate with such company and accept the knowledge market to create new things to give to the customer. by this company can save millions of amount in advertising and promotion .by which company can get profit and maintain their own types of label.


Many companys invest their assets to renew ,extend or replace the means by which they do their business for maintance of profitability and to generate cash flows in the future ,capital investments are allowed in the business. Decisions are to be taken by the company for capital investment over a long period of time .so that it is easier to view a company's balance sheet as the sum of previous investment and directors deciding on financial sector

Company's are different different financialappraisals techniques used to evaluate potential investment decisions .capital investment projects require huge amount of cash flows at the beginning which in turn produce cash inflows for several years.the main objective of the investment apprasials techniques is to maximize the return to its shareholders.

Techniques investment apprasials

Payback method

Return on capital employed method

The net present value method

The internal rate of return method