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Ford’S Strategic Positioning

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Ford’S Strategic Positioning Ford’S Strategic Positioning Presentation Transcript

  • Ford’s Strategic Positioning
    Alex Harris 11/17/2010
  • Agenda
    Company Background
    Economic Crisis
    A New CEO Enters
    A Big Gamble
    Unexpected Results
    Growth
    Looking to the Future
    Strategic Implications
    Questions
  • Company Back Ground
    Founded by Henry Ford and incorporated on June 16, 1903
    Transformed personal transportation with his Model T, an automobile that was reliable, efficient and reasonably priced
    In addition to the Ford, Lincoln, and Mercury brands, Ford also owns a small stake in Mazda in Japan and Aston Martin in the UK
    Ford's former UK subsidiaries Jaguar and Land Rover were sold to Tata Motors of India in March 2008
    In 2010 Ford sold Volvo to GeelyAutomobile
    Ford will discontinue the Mercury brand at the end of 2010
  • Economic Crisis
    Auto sales began plummeting due to the mortgage crisis
    The Big Three auto makers asked for $25 billion of bailout money
    Except for Ford
    If the U.S. auto industry failed, it would not only cause auto workers to loose jobs but snowball down to their suppliers
    CEO’s did not take responsibility
    Need to be limitations
  • Alan Mulally
    Up to 2006, Ford’s CEO was always someone from within the Ford family
    Mr. Mulally was named the President and CEO of Ford Motor Company on September 5, 2006
    Succeeded William Clay Ford, Jr.
    An Outsider from the company
    Not all the board members were pleased with this
  • A Gamble: One Ford Plan
    • Until Mulally, no one ever admitted anything was wrong with Ford’s Brand
    Restructuring of Ford:
    Slashed Ford’s North American workforce by 40%
    Diverged all none core brands
    Mortgaged every asset the company owned
    Accelerated the research and development
    Developed a base design for all models of Ford
    Lower labor costs
    Pay off debt to be net zero
    By the end of the year will have paid 10.8 billion in debt
  • Brand Loyalty
    In doing this, they not only had the monetary funds to hold out the recession, but gained brand loyalty of the American consumers.
    Consumers were “proud” to invest in company that had the strength to withhold a recession.
    Loyalty caused Fords sales to increase exponentially
    Q1: $2.1 Billion
    Q2: $2.6 Billion
    Q3: $2.1 Billion
    Sales has allowed Ford to add more jobs
  • A Family of Cars
    Mr. Mulally’s objective for Ford is to have the best in every category: small, medium, and large.
    Be best in:
    Quality and class
    Green
    Safety
    Fuel efficiency
    Ford has focused on consumer demands and quality
    Mr. Mulally said that “That’s not only good for Ford and our customers and our stakeholders but that’s good for the United States of America.”
  • Looking to The Future
    Global expansion
    Ford said global auto production will rise in 2011
    Expanding to Asia, in particular India
  • Strategic Implications
    A competitive advantage is not permanent
    In the 90’s Ford was number one
    Consumer demands changed
    There is such thing as too much diversification
    Ford was involved in several other brands
    But must always look at your core competencies
    Brand loyalty is a key competitive advantage
    Consumers are your income: without them you have no business
  • Questions?
  • Sources
    http://www.cnbc.com/id/15840232/?video=1622185253&play=1
    http://www.cnbc.com/id/15840232/?video=1616442349&play=1
    http://current.com/17hql4c
    http://online.wsj.com/article/SB122703811621838291.html?mod=todays_us_page_one#articleTabs_slideshow%3D%26articleTabs%3Darticle
    http://online.wsj.com/article/SB122823078705672467.html
    http://blogs.forbes.com/greatspeculations/2010/11/08/ford-the-remake-of-an-american-icon/
    http://www.msnbc.msn.com/id/40010150/ns/business-cnbc_tv/
    http://www.msnbc.msn.com/id/39786621/ns/business-us_business