strama-strategic issue-present strategies-summary of indurstry analysis

7/25/2019 STRAMA-Strategic Issue-Present Strategies-Summary of Indurstry Analysis

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STRATEGIC ISSUES:

1. Unavailability of credit lines and high unemployment rate

2. Oering employee prices to consumers/ low or zero interest rates to

lure buyers

3. ight vehicle production e!ceeded the production of cars and truc"s in

#orth $merica and %urope

&. %!perience a shift from truc"s and 'U(s to hybrid and small fuel)

e*cient vehicles

+. 'uer from an oversupply for dealers

,-%'%# '-$%0%'

One Ford strategy

ord otor 4ompany founded ord One ,rogram in 2556. he principal

purpose of One ord is the understanding of the 4ompany as a real lobal

%ntity7 a uni8ue family regardless function place or culture of their members.

he 3 elements of O#% ord are

O#% %$ O#% ord emphasizes the importance of wor"ing together as one

team to achieve automotive leadership7 which is measured by the

satisfaction of customers7 employees and

Other essential business partners7 such as dealers7 investors7 suppliers7

unions/councils and communities.

O#% ,$# he company9s four)point plan consists of balancing cost

structure with revenue and mar"et share: accelerating development of new


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vehicles that customers want and value: ;nancing the plan and rebuilding

the balance sheet: and wor"ing together to leverage all resources around the

world.

O#% O$ he goal of O#% ord is to create an e!citing and viable company

with pro;table GROWTH FOR ALL.


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(ertical integration B the ford motor credit company oers auto

;nancing to both dealers and customers in support of its parent

company. he company also assists dealerships with funding for such

purposes as improving sites and ac8uiring real estate. he ord9s

motorcraft division oers premium parts/services ranging from motor

oil to transmission assemblies. 0n this way7 the company has achieved

dual obCectives7 it has become its own suppliers as well as distributors7

thus achieving forward and bac"ward vertical integration at the same

time.

Diversi;cation B ord has combined with $ston artin7 Eaguar and and

-over7 sports car manufacturers companies which are dierent but

related. Fence a related diversi;cation can be seen here.


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needs and re8uirements. 0ndustry members also receive intense pressure

stemming from customer bargaining power. 0n eect of economic recession

as consumer demand for new autos has dropped and fre8uent Iuctuations of

purchasing power of the public7 customers are not restricted on buying a

vehicle from one company over another which oers lower prices but of the

same 8uality. 0n 255>7 the Hig hree began oering lowered interest rates or

zero percent ;nancing to lure buyers. he bargaining power of suppliers

remains relatively low. any suppliers compete for large contracts and bul"

prices to ma"e purchase agreements more attractable to automotive ;rms.

he industry also faces moderate pressure of substitute products as public

transportation is readily available to many citizens of urban locations but

may be subCect to limited Ie!ibility concerning destinations7 seating7

schedules and delays. 0t can still be said that cars and other private vehicles

are viewed as a necessity for those who do not live in city centers.

strama-strategic issue-present strategies-summary of indurstry analysis

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