Ford Motor Company is one of the greatest and most successful automobile manufactures (Bryant University, 2004). It was founded in 1903 in Detroit, Michigan by Henry Ford, an innovative individual credited with the introduction of mass production through his assembly line. The Model A was the first car off its production line, and sold for $850. Its considerably low prices and stellar performance of its vehicles ensured that Ford made a steady progress into the global arena, expanding into European nations such as Germany, France and the United Kingdom. The company’s mission and vision revolves around the context of “One Ford”; that is, one team, one plan, one goal-whereby the ...view middle of the document...
In Europe, the company has to satisfy regulatory standards of the European Community Whole Vehicle Approval license for safety, security, and environmental viability. Additionally, Ford as to satisfy the European Union Reduced Pollution Certificate, and the London Low Emission Zone, both which drastically impact sales. Economically, the company is adjusting to the recent global recession which influenced negatively the purchasing power and spending habits of consumers. Technologically, the company’s utilization of the “Ford Escape” advanced safety protection provides it with a competitive edge within digitalized customers. Socially, the increased debate on global warming has seen many customers resort to better social habits that are environmentally friendly and as such, Ford will be compounded to reciprocate this value in its creations.
The company’s planning is highlighted in its mission and vision statement, whereby its mission is to achieve global enterprise in automotive leadership through customer, employee, supplier and community satisfaction. The organizational structure of Ford is characterized by a CEO, who is also the President of the company, and a 17 member Board of Directors chaired by Alan Mulally, who is also the company’s executive chairman. The leadership characteristic evident at Ford is visionary and customer focused. The company utilizes the six sigma approach in quality control, which has ultimately seen it reduce substantially its impact on the environment through proper waste control. Customer satisfaction has also increased gradually.
Ford Motor Company offers a variety of product such as trucks, sports cars, SUV’s, vans, luxury cars, wagons, etc. Vehicles in all product ranges meet the highest standards of safety and comfort. Because of the wide variety of products, prices are dissimilar and almost every type of consumer is represented. This gives the consumer the flexibility to choose a comfortable car that fits their price range. Ford sales most of its products in Northern America (US and Canada) and in Europe. The company promotes the Ford brand of products across multiple promotional mediums such as TV advertisements, magazines, and internet based solutions.
Porter’s Fiver Forces of Competition
The automobile industry is characterized by consumers with financial strength who possess ability to affect the price of the products. However, Ford mitigates this by having a strong brand and through the fact that it controls the retail and distribution channels. Buyer powers are thus moderated. Suppliers have the upper hand too, in the sense that they provide Ford with much needed raw materials. However, the number of industry players such as Toyota, GMC and Chrysler substantially reduce the bargaining power of suppliers. The threat of new entrants is minimal because of the capital needed to operate in the industry. Additionally, strict regulation and lack of distribution channels discourage new...