Ford’S Strategic Positioning


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Ford’S Strategic Positioning

  1. 1. Alex Harris 11/17/2010
  2. 2. • Company Background • Economic Crisis • A New CEO Enters • A Big Gamble • Unexpected Results • Growth • Looking to the Future • Strategic Implications • Questions
  3. 3. • Founded by Henry Ford and incorporated on June 16, 1903 o 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 Geely Automobile • Ford will discontinue the Mercury brand at the end of 2010
  4. 4. • Auto sales began plummeting due to the mortgage crisis • The Big Three auto makers asked for $25 billion of bailout money o 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
  5. 5. • 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 o Succeeded William Clay Ford, Jr. • An Outsider from the company • Not all the board members were pleased with this
  6. 6. • Until Mulally, no one ever admitted anything was wrong with Ford’s Brand • Restructuring of Ford: o Slashed Ford’s North American workforce by 40% o Diverged all none core brands o Mortgaged every asset the company owned o Accelerated the research and development o Developed a base design for all models of Ford o Lower labor costs • Pay off debt to be net zero o By the end of the year will have paid 10.8 billion in debt
  7. 7. • In doing this, they not only had the monetary funds to hold out the recession, but gained brand loyalty of the American consumers. o Consumers were “proud” to invest in company that had the strength to withhold a recession. • Loyalty caused Fords sales to increase exponentially o Q1: $2.1 Billion o Q2: $2.6 Billion o Q3: $2.1 Billion • Sales has allowed Ford to add more jobs
  8. 8. • Mr. Mulally’s objective for Ford is to have the best in every category: small, medium, and large. • Be best in: o Quality and class o Green o Safety o 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.”
  9. 9. • Global expansion o Ford said global auto production will rise in 2011 o Expanding to Asia, in particular India
  10. 10. • A competitive advantage is not permanent o In the 90’s Ford was number one o Consumer demands changed • There is such thing as too much diversification o Ford was involved in several other brands o But must always look at your core competencies • Brand loyalty is a key competitive advantage o Consumers are your income: without them you have no business
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  12. 12. • 1 • 1 • • d=todays_us_page_one#articleTabs_slideshow%3D%26articl eTabs%3Darticle • • remake-of-an-american-icon/ • • us_business