MRKT 5000 Case 7.1.docx

MRKT 5000 Case 7.1.docx - Running head CASE STUDY – FORD...

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R unning head: CASE STUDY – FORD DRIVES FUTURE INNOVATION 1 Marketing 5000 How Ford Drives Future Innovation Case 7.1 Pp. 222-223 of Marketing 2018 Webster University Executive Summary The Ford Motor Company, frequently referred to simply as “Ford,” is one of the largest automobile manufacturers in the world. Headquartered in Dearborn (a suburb of Detroit)
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CASE STUDY – FORD DRIVES FUTURE INNOVATION 2 Michigan, Ford was founded and incorporated in 1903 by Henry Ford with $28,000 that he raised from investors. Ford grew steadily to become one of the greatest and most profitable companies the world over. The company's worldwide business model includes designing, manufacturing, marketing, and servicing a line of Ford cars, trucks, and sport utility vehicles (SUVs), electric vehicles and Lincoln luxury vehicles. Ford operates in four segments: Automotive, Financial Services, Ford Smart Mobility LLC and Central Treasury Operations. Its Automotive segment primarily includes the sale of Ford and Lincoln vehicles, service parts and accessories worldwide. They are responsible for the associated costs to develop, manufacture, distribute, and service the vehicles, parts, and accessories. The segment includes five regional business units: North America, South America, Europe, Asia Pacific, Middle East and Africa (“Ford Motor Company,” 2019). Ford offers extended service contracts for all retail, commercial and fleet sales. The company’s Financial Services segment primarily includes vehicle-related financing and leasing activities at Ford Credit. This segment also offers wholesale loans to dealers to finance the purchase of vehicle inventory, working capital and improvement of dealership facilities, purchase dealership real estate and other dealer vehicle programs. Ford Smart Mobility LLC is a subsidiary formed to design, build, grow, and invest in mobility services. The Central Treasury Operations segment is primarily engaged in decision making for investments, risk management activities, and providing financing for the Automotive segment. The company’s top three competitors are General Motors (U.S.), Toyota Motors (Japan) and Tata Motors (India) (Bhasin, 2018). Ford has over 3,000 dealers in the United States and revenues for 2017 exceeded $156.8 billion, an increase of 3.2 percent from the previous year (“Ford Motor Company 2017 Annual Report,” 2018). Ford’s closest competitor, General Motors (GM), was founded in 1908 by William Durant. Within a few years GM was selling familiar names such as
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CASE STUDY – FORD DRIVES FUTURE INNOVATION 3 Buick, Oldsmobile, Cadillac and Pontiac. Today GM has four brands in the U.S.: Chevrolet, Buick, GMC and Cadillac. The company continues to grow globally with more than 70 percent of its sales now coming from outside the U.S. GM's top five markets by sales are China, United States, Brazil, United Kingdom and Germany. GM has over 4,500 dealers in the United States and revenues for 2017 exceeded $145.6 billion, a decrease of 2.5 percent from the previous year (“General Motors Company 2017 Annual Report,” 2018). Ford announced plans in mid-2018 to
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  • Winter '16
  • Ford Motor Company

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