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Case Study Ford Motor Company

Ford Motor Company was facing issues with sustaining large vehicle sales if oil prices rise and customers financing vehicles outside of Ford Credit. The document discusses Ford's strategic shifts away from passenger cars toward crossovers and SUVs, which were more popular in developed markets, and smaller cars demanded in developing markets. It also covers the risks Ford faces if its Ford Credit arm, which accounts for 50% of profits, experiences higher credit losses or increased competition for financing Ford vehicles. Integration and diversification strategies are presented, such as discontinuing the Fusion, producing a variety of vehicle types in multiple plants, and developing new models like the Mustang Shelby GT500 and smart cars.

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492 views6 pages

Case Study Ford Motor Company

Ford Motor Company was facing issues with sustaining large vehicle sales if oil prices rise and customers financing vehicles outside of Ford Credit. The document discusses Ford's strategic shifts away from passenger cars toward crossovers and SUVs, which were more popular in developed markets, and smaller cars demanded in developing markets. It also covers the risks Ford faces if its Ford Credit arm, which accounts for 50% of profits, experiences higher credit losses or increased competition for financing Ford vehicles. Integration and diversification strategies are presented, such as discontinuing the Fusion, producing a variety of vehicle types in multiple plants, and developing new models like the Mustang Shelby GT500 and smart cars.

Uploaded by

Fatyn
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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CASE STUDY:

FORD MOTOR COMPANY


MAIN ISSUE

Ford Motor Company: Will the Company’s Strategic Moves


Restore its Competitiveness and Financial Performance?

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MAIN ISSUE
How to sustain large vehicle sale if petroleum price rise?

The developing The developed Ford’s shifting


economies of the economies strategic focus away
world primarily preferred the larger from passenger cars
demanded smaller crossovers, SUVs, toward crossovers
Automobiles. and trucks. and SUVs

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MAIN ISSUE
What is the suitable strategy if customers finance their vehicles other than at Ford
Credit?

Risk:
Been able to subsidize • Experience higher than
Ford’s expected credit loss
• Increased competition
Ford Credit arm
losses and allowed the from financial institutions
accounted 50% of and other third parties
company to maintain a
Ford’s profits. seeking to increase share
high financing Ford vehicles
dividend yield. • Subject to credit
regulations

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Integration Strategies
Diversification Strategies
FR
HORIZONTAL INTEGRATION CONCENTRIC DIVERSIFICATION
 Discontinuation of Fusion as Ford  Having multiple plants that
shift strategy from passenger cars to produce variety of cars (midsize
crossovers and SUVs. cars, SUVs and pickup trucks).

Intensive Strategies Defensive Strategies


PRODUCT DEVELOPMENT JOINT VENTURE
 The variety of cars indicate product  Ford and General Electric’s Health
development strategy Care Division announced on March 30
(Escape, Expedition, Explorer, Ranger, F- that they together planned to
150 Hybrid, Bronco, and the Mustang produce 50,000 ventilators
Shelby GT500)
 Production of smart car
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THANK YOU

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