Ford’s Global Strategy

Ford’s Global Strategy

The US based automobile manufacturer Ford Motor Company’s North American business was facing problems since the early 2000s due to external business environment factors like severe competition from the Japanese automobile manufacturers, rise in gasoline prices and decline in the sales of SUVs. Other factors like old vehicle models, rising pension and healthcare costs and changing customer preferences also had an adverse affect on the company. As a result, Ford has been losing market share in North America and in 2005, the division posted huge losses.

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To revive its business in North America, Ford introduced a restructuring plan called ‘The Way Forward. ‘ This paper will discuss about Ford’s strategic plan and explains how it aims to turnaround Ford’s North American business. Strate gic Plan Fords growth and global strategy has been becoming a global player competing within different competitor groups. The US carmaker is aiming to drive up sales by 50% by 2015 as it hopes to take advantage of fast-growing demand in the developing world.

There are many of options available to Ford Motors, they can consolidate, strengthen their position as an industry giant with strong and efficient brands that maximize the bottom line thereby downsizing and reducing their operational cost causing a return in profit, alongside strengthening sales in existing markets. Since the company is in financial crisis and obviously facing cash flow problems, they should enforce strict financial controls. There should be rationalizing of brands that are not profitable. They should start outsourcing parts. They can to enter markets where they have low or no presence to increase sales and market presence.

As a result of fuel prices, carbon emission regulations and sustainable development policies, it will be ideal for ford to invest in alternative-fuel vehicles and hybrid engines, hydrogen or bio fuels with a vision of developing sustainable technologies. If this is successful they can be strategic leaders and their SUV alongside all other vehicles can become a success. They also need to develop demand driven cars which are efficient in the short to medium term with the current fuel systems, like the Japanese are pursuing, taking into action their operational and manufacturing practices.

They should collaborate with suppliers, buyers and competitors and also vertical integration and joint ventures will give them added advantage. There is the need Cut down excess capacity in production, labor force and there should be a critical review of manufacturing plants, this should be done according to profitability and strategic direction. IF all of these strategies are carried out it will ensure a successful turnaround and growth of the company. Ford Motor Company’s Global Stratey


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