Explain and analyze the international market to gain the various competitive advantages.
The main aim of the paper is to explain and analyze the international market to gain the various competitive advantages. Ford Company has been taken in the paper to outline and explain the progress of the firm in the foreign market. Ford is an automobile company which maintains the fifth position in the global automobile industry. The effective innovation process is used and initiated by the firm to maintain a strong brand image globally. It is a top player in the global automotive sector which contributes to customer loyalty and product attractiveness. Furthermore, the paper explains challenges and barriers which are dealt by the firm while operating and managing business operations globally. It outlines how the company handles and manages these challenges and issues to flourish business and to build a good image in rivalry market.
Ford motor company is an American multinational automaker which was incorporated on June 16, 1903. It’s headquarter is located in Dearborn, Michigan U.S. The firm sells commercial and automobiles vehicles under the Ford brand. It is the second biggest U.S based automaker company and the fifth biggest organization in the world based on 2015 vehicle production. There are approx 201,000 employees employed in the organization. Ford is the fifth biggest automaker company in Europe and eighth-ranked American based companies. Since Ford beginning in 1903, it has become a pioneer in the global industry. The vision statement of the company is to work together as a global and lean enterprise for effective leadership. It will help to generate more revenue and outputs in the organization. It is also trying to provide satisfaction to customers, dealers, suppliers, employees, and communities. The mission statement of the company is to offer various types of vehicles to customers for making a good image in the competitors market across the world (Ford, 2017). Also, it tries to improve and enhance business performance to achieve global leadership. The unique team of Ford creates inspired products and services that help to make people lives well. In today’s era, the firm is exploring its business activities and operations globally. Competitors may influence the success and growth of the firm adversely. The competitors of Ford include general motor company, Toyota motor, Honda motor company, Daimler, Tesla motors and Spartan Motors. The firm should focus on the plans, policies, and strategies of the competitors to stay in the competitive market. The firm uses various promotional and advertisement strategies to overcome the competitors and to stand out against the competitors in the global world. Ford motor company is one of the biggest automotive manufactures in the world (Wilkins & Hill, 2011).
In today’s competitive world, various challenges are faced by the company while conducting business activities globally. A wide range of challenges and issues are affecting success and growth of the firm. Current Ford’s automobile models are not as energy efficient and effective, as they could affect the sustainability of the environment negatively. Along with this, global economic markets are performing well than the company had expected in prior planning. This poor and ineffective planning will affect needs, preferences and desires of consumers worldwide. Moreover, Ford’s market share in the foreign market is lower than desired, as it also affects the profitability of the company (Esty & Winston, 2009). Additionally, the business plan of the firm is not much effective in the market. Mechanical issues have been found in Ford models. Fuel efficiency is the biggest challenge for Ford motor company because fuel prices are so high thus it affects sales and revenue of the firm. In addition, the firm has recalled approx 4 million vehicles for various reasons. Furthermore, innovation process is slow and vehicle cost is high in Ford compared to other brand. The oil prices fluctuate on regular basis (Pistoia, 2010).
Along with this, Ford motor company uses several marketing channels such as TV, Radio, and other sources. It would be just a waste of time for consumers in the global market. There are various issues also existed in production line such as acceleration and safety issues that have a direct impacted on the growth and expansion of the firm. Due to safety and quality issue, the company had to pay a large amount to the consumers as compensation who filed legal action against Ford (Mallick, 2010). Therefore, the company recalled several vehicles of similar model and exchanged their tires free of cost. Also, it affects the reputations and image of the organization adversely. They lost their loyal and trustable customers. Furthermore, recall is done by the firm to evaluate and adjust side curtain airbags as required. It also affects the goodwill of the organization adversely. Ford is not aware of any injuries and accidents related to airbags issues. All these issues and challenges are being dealt by Ford motor company in the international market. All these challenges have a direct impacted on the strategies and position of the firm. Apart from this, various ethical and technical issues also have influenced their business environment adversely from various ways (Johnson, 2010). The stakeholders and suppliers of Ford were also affected by the company acceleration problem. In addition, the organization has not been able to solve the issues and problems of the customers; they hesitated and avoided the issues of consumers. As a result, customers are losing their lives in various injuries and accidents. These are the biggest issues for the company which could have a negative impact on the productivity and outcomes of the organization. Rising gas prices also affect the fuel efficiency of the company. Due to poor business model, Ford has not been able to maintain sustainability in the workplace as well as a marketplace (Lubin & Esty, 2010). Additionally, supply chain management of the company is not effective and attractive thus, the managers have not been able to maintain an optimum level of inventory within the organization. Furthermore, managers and top management are not able to maintain proper communication and cooperation with suppliers in the market. Globalization in the supply chain is a major concern which could affect the quality of vehicles in the competitive market. It will also influence the growth and progress of the organization if Ford explores and conducts its trading activities in the international market (Wee & Wu, 2009).
Ford should address all these challenges and issues to maintain a good image and to fulfill its mission and vision. The company needs to develop and build brand loyalty and consumer acquisitions by addressing changing needs of stakeholders and consumers. It will also help to eliminate and reduce the challenges which could directly affect the strategies and policies of the company. It is recommended that the firm should begin a public relation campaign which is monitored on educating consumers about the current status of the automotive sector. Moreover, the organization should focus on the production process to beat the competitors in an effective way (Wee & Wu, 2009). Qualified and experienced workers shall be appointed for different positions at public relations departments and research and development department in the organization. This step can be considered successful force which will help to maximize production of the association. To overcome various challenges, Ford must start to build and develop healthy partnerships and relationships with leading energy firms. By generating cooperative research and development facilities, the company has been able to reduce accelerated rates in the international market. The organization should gain a cooperative relationship with the majority of leading engineering and energy firms. With effective cooperation and communication, Ford has been able to gain a competitive edge against rivalries in the world.
Along with this, Ford should use innovative and advanced technologies to increase the number of customers and to maintain sustainability in the workplace. Effective strategies and approaches shall be initiated and used by the company to explore and expand the trading activities and operations globally (Christensen, 2013). Also, the organization should expand its production network to maximize economies of scale which can help to reduce prices and costs to make Ford motor company more attractive and effective. It will help to eliminate the barriers and hurdles of the market (Denton, 2016). Moreover, the association should focus on the strategies, plans, and approaches of the competitors to make a good financial image in the minds of consumers worldwide. The prices of vehicles should be appropriate to gain competitive advantages in the market. Ford motor company must differentiate its products from competitor’s products and services. It should also monitor and identify the strengths and weaknesses of the competitors to maximize outputs and returns globally (David, 2011). If the firm operates and manages its activities and operations in global market then the managers should provide cross-cultural training to employees to understand culture and environment of the foreign market. It also will help to generate more and more revenue and outcomes in the international market. The external analysis must be done by Ford to evaluate and identify the growth opportunities in other countries. Also, it will help to create a attractive and effective goodwill in the foreign market (Dutta, 2017).
Apart from this, growth level strategies and corporate level strategies shall be used to increase the growth rate of the firm. In this way, the company can gain rivalry benefits in the international market. Dynamic and effective supply chain management should be used by Ford in order to maintain coordination among suppliers, retailers, customers, and distributors. Also, supply chain managers should provide right and appropriate information to clients to increase the sale of the company (Hugos, 2011). In this way, the firm can attain desired goals and objectives and it also helps to conduct business activities globally. Segmentation, targeting and positioning strategies shall be used to reach its target audience in the world. Various promotional strategies shall be adopted to promote and encourage its vehicles and services in the world. All these suggestions will help to grow and explore its business globally (Emadi, 2017). SWOT analysis, porter five forces analysis, and Pestle analysis must be done by Ford to analyze and evaluate the challenges and opportunities of the market as well as competitors (Christine, 2017). The SWOT analysis has been stated below.
|
Strengths |
Weaknesses |
|
· Ford is one of the older care manufacturers in the market. · The company provides a variety of cars to different consumers in the overall world. · It provides products in several features by taking consideration of the target audience. · Apart from cars, the firm also produces trucks, tractors, buses etc. |
· High and intense competition exists in the competitive market. · Poor reputation in the market and heavy dependence on Europe and U.S auto markets. As a result, it will affect sales and growth of the firm. · In addition, poor and ineffective reputation with investors which can also influence the firm’s ability to raise capital in the rivalry market. |
|
Opportunities |
Threats |
|
· Growing automobile industry can be tapped in the overall world by Ford. · Due to the expansion of consumer base, the company is trying to improve the business scenario. · Increasing level of e-commerce can become a good source to gain success and growth in the world. It will also help to increase the demand for light commercial vehicles. |
· Competition from various international leaders can decrease Ford’s market share. · Production issue is also a major threat to the organization. Being a global brand, it is influenced by global economic crisis and recession. · Increasing fuel cost can also become the biggest threat to the organization. · Various threats related to environmental regulations being faced by Ford in the market. |
All these recommendations help to increase and improve the scope of its production network in the market. It will also help to overcome the aggressive competition in the universal market.
Conclusion
On the above-mentioned study, it can be concluded that marketing audit is essential to enter in the foreign market. Ford motor company has been selected for the task to analyze and explain the trading activities in the international market. Ford is largest automobile producers across the world. The firm sells its products globally to attract more consumers in the global world. Young executives, small families, and businessmen are main and primary target group of the company. Various challenges and hurdles also being faced by the organization while conducting its activities and operations in the international market. At the end, some recommendations have been given to improve and overcome the challenges and issues worldwide.
References
Christensen, C. (2013). The innovator’s dilemma: when new technologies cause great firms to fail. Harvard Business Review Press.
Christine. R.(2017). Ford Motor Company SWOT analysis, retrieved on 1st Feb 2018,< https://panmore.com/ford-motor-company-swot-analysis>
David, F. R. (2011). Strategic management: Concepts and cases. Peaeson/Prentice Hall.
Denton, T. (2016). Advanced Automotive Fault Diagnosis: Automotive Technology: Vehicle Maintenance and Repair. Routledge.
Dutta, G. (2017). Global Marketing. Pearson Education India.
Emadi, A. (Ed.). (2017). Handbook of automotive power electronics and motor drives. CRC press.
Esty, D., & Winston, A. (2009). Green to gold: How smart companies use environmental strategy to innovate, create value, and build competitive advantage. John Wiley & Sons.
Ford, (2017). Our history, retrieved on 31st January 2018,< https://corporate.ford.com/history.html>
Hugos, M. H. (2011). Essentials of supply chain management (Vol. 62). John Wiley & Sons.
Johnson, M. W. (2010). Seizing the white space. Business Model Innovation for Growth and Renewal; Harvard Business School Press: Boston, MA, USA.
Lubin, D. A., & Esty, D. C. (2010). The sustainability imperative. Harvard business review, 88(5), 42-50.
Mallick, P. K. (Ed.). (2010). Materials, design and manufacturing for lightweight vehicles. Elsevier.
Pistoia, G. (Ed.). (2010). Electric and hybrid vehicles: Power sources, models, sustainability, infrastructure and the market. Elsevier.
Wee, H. M., & Wu, S. (2009). Lean supply chain and its effect on product cost and quality: a case study on Ford Motor Company. Supply Chain Management: An International Journal, 14(5), 335-341.
Wee, H. M., & Wu, S. (2009). Lean supply chain and its effect on product cost and quality: a case study on Ford Motor Company. Supply Chain Management: An International Journal, 14(5), 335-341.
Wilkins, M., & Hill, F. E. (2011). American business abroad: Ford on six continents. Cambridge University Press.
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