The Ford Company’s Success Factors – 530 Words

One of the critical success factors of Ford is an aggressive competition policy that prevents other manufacturers from overtaking Ford in terms of sales. Another success factor was identified as understanding market movements and adapting to new customer needs. Finally, Ford meets the critical success factor of innovation, which allows the company to survive while maintaining a traditional marketing strategy.

Competencies and Competitive Advantages

Ford’s core competencies include sound risk management, an adaptive cost strategy, and a focus on the needs of the target customer. The distinctive competencies of the company are the desire for reliability, the use of new technologies, and environmental friendliness. These competencies correspond to key success factors and provide Ford with a stable position in the market. Adaptation to customer needs is expressed in the desire to produce reliable machines that meet modern technological requirements while keeping them affordable for buyers from the middle class.

Aggressive competition policy forces Ford to be the first to introduce innovative products to the market, such as autonomous cars. At the same time, Ford has an adaptive strategy, trying to cut costs so that prices are affordable and financial performance recovers from the pandemic. The combination of the above factors provides Ford with a competitive advantage. The company aims to be the first manufacturer to produce sustainable, reliable, and innovative vehicles at an affordable price. Building on its solid reputation, Ford is bringing modern electric and self-driving cars to market (Deng et al., 2020). Brand loyalty and its name popularity create all the barriers to market entry for new competitors.

Strengths

A definite strength of Ford’s strategy is capturing the market by any means available. The company knows the market and the needs of its customers well, which allows it to adapt production at minimal cost. While maintaining the production of the most popular models, passenger sedans, and trucks, the company is committed to the production of electric cars and autonomous vehicles. The ability to satisfy any request at an affordable price provides a strong reputation for the brand. A wide choice and representation of the brand in remote regions significantly increases sales. The commitment to environmentally friendly production is also a strength that contributes to the loyalty of consumers. The company seeks to secure a leading position in the market, which is a strength that allows it to attract investors.

Weaknesses

Despite a stable market position and undeniable advantages, Ford has weaknesses that hinder the company’s rapid development in the automotive industry. These weaknesses are preventing the company from recovering from losses caused by the COVID-19 pandemic. A financial strategy for risk management may not be very successful, as it is based on cost reduction, which is at the expense of the quality and position of the organization’s employees. Trying to increase profits by cutting costs and saving on materials could undermine Ford’s credibility. Another weak side is the monopoly of the marketing strategy.

Obstacles to healthy competition can lead to the fact that management will no longer see alternative development strategies (Hoffmann et al., 2018). Adopting the strengths of competitors always contributes to sustainable development. Ford deprives itself of this opportunity, thereby demonstrating the shortsightedness of the strategy.

References

Deng, J., Bae, C., Denlinger, A., & Miller, T. (2020). Electric vehicles batteries: requirements and challenges. Joule, 4(3), 511-515. Web.

Hoffmann, W., Lavie, D., Reuer, J. J., & Shipilov, A. (2018). The interplay of competition and cooperation. Strategic Management Journal, 39(12), 3033-3052. Web.