Ford Motor Company Strategy Index Strategic ContextFord Motor Company's Competitive StrategyFord's Key and Distinctive CompetenciesPorter's Five Forces in Relation to Ford's International Growth StrategiesFord's PESTEL AnalysisPolitical FactorEconomic FactorsSocial FactorsFactors TechnologicalEnvironmental FactorsLegal FactorsFord's Net Profit Margin (For cost minimization) and Working Capital (to cover operations)Analysis Tool 2013 ($ Million) 2014 ($ Million) 2015 ($ Million)RecommendationsFord Motor's Strategic Context CompanyFord Motor Company is a strategically revolutionary and technologically innovative automotive company founded in in 1903 and quickly became the first of its kind to use distinctive techniques such as moving assembly lines and conveyor belts in manufacturing and human resource management practices by fixing the prices of products that can be purchased by its workers with fair and standard wages. The T1 model is the first example of this innovation as it sets a global industry standard for automobile production. From expanding1 its portfolio by adding different price ranges of cars to reducing its portfolio by selling most of its luxury brands, such as Premier Automotive Group1, Ford has always changed its strategy due to the highly volatile external environment in the last century as well as in the current times. The following vision and mission appropriately describe the company's core competencies and focus. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an Original Essay Ford Motor Company Vision Statement: “People working together as a lean, global enterprise to improve people's lives through leadership in automotive and mobility.” The Ford Motor Company Mission Statement : “One team. One plan. One goal.”Ford Motor Company's Competitive StrategyFord's competitive strategy has changed significantly over the past 115 years. Ford's core business has seen a shift from simply producing vehicles using a strategy of cost leadership to "intelligent mobility", in which the company not only limits itself to its core business but extends its brand to look more like "technology" companies rather than simply companies producing a finished product Ford's strategy is not only limited to being a cost leader, but also includes a variety in its portfolio of offerings, such as Lincoln brands, positioned at premium prices. Their product offerings attract various types of customers based on their level of convenience. Ford's modern competitive strategy is based on the "One Ford Plan"1 which basically includes four main components: the return of Ford to profitability, hindered by the Great Recession of the 2008-2009 period3, the satisfaction of customer demands by increasing the speed of development of potential products, improve the company's financial position and ultimately better teamwork. These changes were made to cope with the rapidly changing global environment in which Ford is not only competing with automotive giants but also with technology companies, ride-sharing application companies, mass transit systems, subway systems ( new railway systems in Indian metropolitan cities) and local taxi services. Ford's Core and Distinctive Competencies Ford's core competency was manufacturing techniques to achieve economies of scale to improve profits and core efficiency to respondto the influence of changes in the external environment. Their core competency has since changed to meet the needs of a growing external environment. Ford's current core competency includes strong brand recognition, relationship with rivals and the "One Ford Plan". Their distinctive expertise is the intensive strategy of growth through portfolio reduction using different cost reduction techniques. Porter's Five Forces in Relation to Ford's International Growth Strategies These five forces will reflect the level of impact on Ford's business from external factors in the automotive industry. Competitive Rivalry: This force is the strongest external factor in the case of Ford since the automotive industry has strong competition and very low exits (high barriers to exit) due to high investments3 and costs of companies that are already in l the automotive industry. Competitors like GM, Toyota will continue to innovate and differentiate themselves to achieve market share, which is the result of this too strong force. As the rivalry intensifies, the goal is to achieve sufficient market share for the firm. Other potential rivals and partners include Uber, Ola and other mobility services. Dynamic Shuttle in India will face stiff competition from Ola due to its strong presence, affordable rates and aggressive tactics. Bargaining Power of Buyers: Ford has a strong cost leadership strategy where their product offerings are different for different regions, but the low-price segment is full of competitors.1 This gives strong bargaining power to consumers as l The car represents a great investment. This force is strong because switching costs are not high and there are numerous substitutes available in India such as Tata and Toyota. 1 Dynamic Shuttle prices are premium compared to mass transit, it could be a strong force in that matter as there are options available to buyers. To overcome this problem, Ford needs to conduct aggressive marketing of its offering in India and other potential markets at the time of launch. Bargaining Power of Suppliers: Bargaining power of supplier Ford appears to be weak as Ford's strategy is to be a cost leader requiring Ford suppliers to exclusively produce their "supplies" or "parts" for Ford. 3 For 'Smart Mobility' there will be a significant change in the bargaining power of suppliers, which in this case will be strong as 'Dynamic Shuttle' will truly succeed where there is congestion in the transport system. Threats of Substitutes: This force can be both moderate and strong for Ford as there are many substitutes for Ford cars such as ride-sharing applications, taxis, public transportation, bicycles, etc. Companies like General Motors, Toyota and Tata for their mid-range cars and other luxury competitors for Ford's luxury brand Lincoln cars. The threat of new competitors: There are several barriers for new companies to enter the automotive industry, for example, achieving economies of scale requires high investments, gaining brand recognition requires aggressive marketing and brand development. This force is weak for Ford, but it is still considered a threat because there is potential for innovation from new automotive start-ups that may simply enter the market with the opportunity to create and offer something new to the market or simply imitate it. Ola is an imitation of Uber in India but Uber adopts techniques for Indian markets from Ola's decision such as accepting cash payments which is more suitable for the Indian population. PESTEL Analysis of Ford In this section, a PESTEL analysis for Ford in relationto India as a country The potential environment for a test pilot of the “Dynamic Shuttle” was created because it is most appropriate to the subject matter of the case. Specific topic in relation to the opportunities and threats in the Indian market and the potential for successful application of this model in markets such as China. The biggest threats in both China and India will be local competitors. In the case exhibit, Uber's reach in India appears to be overshadowed by Ola's penetration of the entire Indian market, which poses a threat to Ford's 'Dynamic Shuttle'. Political factor Ford's international strategy to enter Indian mobility is accompanied by several favorable conditions, such as political stability and increasing ease of doing business under Prime Minister Narendra Modi, whose ruling BJP party has a majority of seats in parliament, making the most centralized government. The “One Ford Plan” will require a policy environment encouraged by government technological innovation for greater flexibility of the urban transportation system. Politics also plays an important role in fuel prices, inflation and access to credit for its population. These factors will influence Ford's plan in all markets it plans to enter. Economic Factors After overcoming the recession in 2008-2009, Ford has revamped its product offerings by making them technologically updated and launching them on fewer platforms to focus on disposable income available with potential customers to provide them with the best value offer quality-price by reducing costs. The recession and global financial crisis have not yet threatened Ford's future as it has bounced back by making changes to its products, reducing prices, reducing its portfolio, and continuously adapting. But it requires decentralization in decision making. Social Factors These factors are one of the most important attributes that define customers' desires and preferences. As requirements are shifting towards fuel efficiency, electric vehicles and affordability as fuel prices are rising, environmental concerns are becoming increasingly relevant to customers. Ford needs to create a strong brand image in such areas by investing more in sustainable practices in both manufacturing and reverse logistics. Technology Factors Ford has always been at the forefront of innovating new technologies or adapting new technologies for comprehensive mobility solutions and services. Technological innovations such as driverless and electric cars will need more factors. Ford's ability to acquire sufficient financial capabilities can be seen in its cost minimization techniques using economies of scale. 7The growing trend in smartphone usage is one of those market directions that Ford needs to focus on. Environmental Factors Climate change, low-carbon footprints and sustainability concerns are trends Ford needs to focus on by offering fuel-efficient and environmentally friendly products. Issues regarding the natural environment are becoming increasingly relevant due to high levels of pollution in countries such as India and China. Ford's 'Dynamic Shuttle' is expected to include a sustainability action plan in India to reduce carbon footprint. Legal Factors Changing legal requirements are a major concern in Asian countries as the need for environmental protection has increased as have regulations, but this is an opportunity for Ford to position itself as an eco-friendly and caring company. Better intellectual property rights laws will give Ford the opportunity to.