Case Preview: In the US market there were intense competitions during the end of eighties and the beginning of nineties. The US Cars market was characterized by an intense competition in the mid- size cars “SEDAN”. During 1988 Ford Company was ranked the first in terms of selling cars in the United States, and in 1989 Honda attacked Ford Company and assumed the lead in the Unites States. In the wake of loosing number one position, Ford Company was compelled to work hard to recover this first place in the midsize category in the 1992. To that end, It adopted some strategies, such as reshaping Taurus and taking the safety position to change its image to meet customers’ needs and wants. This case study discusses the intense competition between the two wellknown brands (Ford Taurus and Honda Accord). When Ford became in the challenging position, it adopted some attack strategies to recapture the leading position in sales of the Mid-size Sedan. The case study further presents a profound analysis that goes over all the strategies adopted by Ford in competition with Honda to achieve its goal. Problem Definition in the Case: Ford Taurus was lagged by thousands of cars in sales to Honda accord (?). Furthermore, to become Number 1, “The Leader”, and beat Honda, Ford set up several strategies and stood to the management (?). The staff was capable of achieving the strategies, and the gap between the two companies obviously shrank by the time Ford achieved its objective in early 1993. SWOT Analysis Understanding Your Strengths, Weaknesses, Opportunities and Threats The importance using SWOT analysis SWOT Analysis is a very effective way of identifying your strengths and weaknesses, and of examining the opportunities and threats you face. Carrying out an analysis using the SWOT framework will help you to focus your activities into areas where you are strong, and where the greatest opportunities lie. Again, consider this from an internal and external view - do other firms seem to perceive weaknesses that your firm does not see? Are your
Competitors doing better than you? It is best to be realistic now, and approach any unpleasant truths as soon as possible.
To carry out a SWOT Analysis, the following questions should be answered. Strengths:
What are your advantages? What do you do well? What do other firms see as your strengths?
What could you improve? What do you do badly? What should you avoid?
Where are the good opportunities facing your firm? What are the interesting trends you are aware of?
What obstacles do you face? What is your competition doing? Are the required specifications of your firm, products or services changing? Is changing technology threatening your position?
Carrying out this analysis will often be illuminating - both in terms of pointing out what needs to be done, and in putting problems into perspective. We will also apply SWOT analysis to the Honda as a competitor – as this may produce some interesting insights!
Ford SWOT analysis
Strengths Weaknesses Highly financial position. Lack of planning before its decision to beat Honda Highly skilled staff and CEO. Accord. Pretty personnel and Shortage in the US advertising Management. and promotion before its Has an obviously future vision. decision to beat Honda Proactive management was Accord. used. Poor in Research and Good Positioning (Ford as Development before its Brand name). decision to beat Honda Diversification of products in Accord. the market. Cannot follow up the market Deep-rootedness in the US wants. market. Undesirable Ford Engine as the customers demanded the small and efficient engine instead of the large engine. Opportunities Threats The desire of American The presence of several customers to lease domestic and international competitors. Ford customization features based on the customers wants. Trends...
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