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establishes cost advantage and gives the company advantage over its competitors in terms of
lower cost (Porter, 1983). In the mean while company focused on producing smart cars that were
not price sensitive and offered the functionality of traditional ford cars. The market position of Ford has been enhanced due to multiple factors. Firstly, since it
fought hard against bankruptcy and refused governmental funding as its competitors did, the
consumer trust has increased in the company and its brands. Secondly, its products are widely
accepted by the consumers and integrating with the first factor, the company has increased
market share. Lastly, the company has adopted the strategy to provide smart cars to the
consumers it will further benefit the company in terms of market share and increased volumes
(GLG Expert, 2009). Ford can benefit from the industrial recovery by offering and focusing on
the consumer- oriented products and give value to them while generating reasonable profits. The demand for better fuel economic cars has increased due to high energy prices with
the increasing wealth of developing world; the Ford motors currently believe in providing few
automobile models to sell around the globe with some modifications; to be called world cars.
Ford Fiesta is the first world car which was designed by Ford Europe and was produced in US
and China. The future strategy of Ford Company is to develop more world cars with the idea of
providing standardized products to its worldwide markets.
The company developed its competitive edge that carried it to the future. They introduced
a technology which was already in use by its competitors but with the new perspective and modification. The tech gadget called Ford SYNC. It is a science sync-equipped in the vehicles
that can connect the driver with so many options. Ford SYNC is a company fitted, fully integrated communication and entertainment
system that connects the users with internet through his smart phone and allows them to make
telephone calls and control music and other functions using voice commands. This system is the
integrated interface developed by Ford and Microsoft that operates on Microsoft Windows
Embedded Automotive operating system. Ford is currently not performing very well in the US markets but the losses are
considered to be acceptable as the company has shifted its focus to profitability, small scale
operations and more flexible in terms of operations. In April 2009, the company¶s strategy to
meet its debts removed $ 9.9B in liabilities which makes 28% of its total. This resulted in the
$2.7 billion profit for the year 2009 to the company. Source: Wikinvest
In the light of this case study and the various Google sources, it is clear that the resizing
of the company, improved brand image and more importantly the company¶s strategy to meet its
debt, even in the presence of Government¶s funding option, has given Ford motors a new face. It
has a new style in the market. The people trust the company for its promise to provide
standardized cars at somewhat affordable prices.
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This document was uploaded on 03/17/2014.
- Winter '13