Rietta D. Owens
Ford Develops a Strategy for Competitive Advantage
Ford is the second largest U.S.-based automaker and the fifth-largest in the world based on 2010 vehicle sales. Ford is the eighth-ranked overall American-based company in the 2010 Fortune 500 list, based on global revenues in 2009 of $118.3 billion. In 2009, Ford faced declining sales of 23.4 percent, a change in leadership and a great possibility that it would have to file bankruptcy like other automakers such as General Motors and Chrysler. Under new leadership, Ford embarked on a new strategy by reducing costs, placing emphasis on trendy car models and closing 16 factories and plants.
Key Marketing Issues
Market Opportunity - Ford took the opportunity during a economic crisis to refocus on consumers through repositioning its brands. In addition, the company created an image around a brand and gave consumers a reason to buy Ford products. Ford began to revamped their target market and specifically targeted women drivers.
Marketing Objective - This objective can be accomplished through marketing activities. As Ford started to implement its new strategy, the company targeted women. Ford aimed the new Ford Fusion at women using a unique promotional campaign, the Fusion Studio. Women were allowed to interact with the Fusion while at malls across the country and given the opportunity to test drive the car. This proved to be the break Ford needed as the new Fusion model and hybrid sales increased from 2008-2009.
Corporate Strategy - This strategy determines the means for utilizing resources in various functional areas to reach an organization's goals. The new leadership at Ford decided to change its strategy to reduce capacity, pricing strategy, and create innovation. This was done with "The Way Forward". This strategy was to ensure the company could reduce costs while maintaining a focus on consumers...