Ford Motor Company is an American automotive company, a manufacturer of cars under the Ford brand. The Ford Motor company appeared in 1903. Its founders were twelve businessmen from Michigan, led by Henry Ford, who held 25.5% of the company’s shares (Arroyo, 2019). In 1906, he became the president of the company. The company is divided into three structures: Ford North America, Ford Asia Pacific, and Ford of Europe.
Regarding competitive strategies, Ford adheres to the strategy of attracting customers by minimizing the costs of goods and services. Buyers are attracted by maximizing the difference between the company’s products from competitors and increasing consumer value due to higher quality at lower prices. The company focuses on a narrow segment of customers and the displacement of competitors primarily due to lower production costs (Enkhbayar, 2018). Reducing the price below the level of competitors ‘ prices as well as giving additional properties to the product is necessary to create a reputation of a company offering a combination of price and quality.
A distinctive feature of the company’s strategy is focused on cost minimization and broad differentiation, which means that the company develops a different product for a different segment of users. At the same time, the goal of the strategy is not to reduce the company’s image and not to disperse efforts by developing other segments or adding new products to expand its presence in the market. However, such a strategy also has weaknesses – it may be unsuccessful if buyers consider the additional properties of the product insufficient to prefer it to competitors’ products. Therefore, the company always maintains the exceptional quality of its product.
Ford strives to meet modern value trends. For example, Ford’s priority is a concern for the environment. The company is developing technologies that can reduce the harmful impact of fuel waste on the environment. Consider the Ford company around the world; its customers are at least 99 million inhabitants of the planet (Enkhbayar, 2018). The company’s main task is not to sell a new car to the buyer but for him to return for another vehicle. Modern Ford dealerships have their own approach to each client. The company decided to introduce innovations such as the transition to modern dealerships and opening a loyalty program for customers.
References
Arroyo, J. D. (2019). Ford and the New Auto Industry.
Enkhbayar, A. (2018). Ford Motor Company’s Financial Analysis. Dissertations, Theses, and Projects, 150.