Strategic Management

Case Analysis

Lecturer: Dr. Yeap
Mohammad Tehrani Nasr 1071200530

Competitive Environment Analysis

Automobile Industry
• Market Structure: Oligopoly • Largest auto market: U.S. • 16 million vehicle in year, 22 firms • Big Five: GM, Ford, Toyota, Chrysler and Honda

• • •

Founded: 1908 Headquarters: Detroit, Michigan, USA Employees : 252,000 (2008)

• • •

Founded: 1937 Headquarters: Tokyo, Japan Employees: 316,121 (2008)

• • •

Founded: 1925 Headquarters: Michigan, USA Employees: 58,000 (2008)

• • •

Founded: 1948 Headquarters: Tokyo, Japan Employees: 167,231 (2008)

What is The Ford’s Competitors Objective?

• • • •

Maximum Profit Market share growth Technological leadership Service leadership

U.S. Market Share - 2008
Other 17 Co.

25%

15%

11%

22%

16%

11%

Source: http://www.usnews.com

U.S. Light Vehicle Sale - April 2009
Number
300,000 250,000 200,000 150,000 100,000 50,000 0 April 2009 April 2008 GM 171,258 256,058 Ford 129,476 188,527 Toyota 126,540 217,700 Chrysler LLC 76,682 147,751 Honda 101,029 135,180

↓33%

↓31%

↓42%

↓48%

↓25%

Source: http://online.wsj.co

Total Revenue
300,000,000 250,000,000 200,000,000 150,000,000 100,000,000 50,000,000 GM TM Ford HM 2006 207,349,000 179,083,000 160,123,000 84,217,966 2007 181,122,000 202,864,000 172,455,000 94,240,690 2008 148,979,000 262,394,000 146,277,000 121,228,623

Source: http://finance.yahoo.com

Net Income
20,000,000 10,000,000 (10,000,000) (20,000,000) (30,000,000) (40,000,000) (50,000,000) GM TM Ford HM 2006 (1,978,000) 11,681,000 (12,613,000) 5,074,781 2007 (38,732,000) 13,927,000 (2,273,000) 5,034,737 2008 (30,860,000) 17,146,000 (14,672,000) 6,060,394

Source: http://finance.yahoo.com

Subsidiaries
8 Brands (Ford, Lincoln, Mercury, Mazda, Volvo, Jaguar,
Land Rover, Aston Martin)

13 Brands (Buick, Cadillac, Chevrolet, GM Daewoo, GMC,
Holden, Hummer, Pontiac, Opel, Saab, Saturn, Vauxhall, and Wuling)

5 Brands (Toyota, Lexus, scion, Daihatsu, Hino) 4 Brands (Chrysler, Dodge, Jeep, Mopar) 2 Brand (Honda, Acura)

Patterns of Target Market
• Differentiated marketing

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Core Competence

Innovation in service and technology TQM (Total Quality Management) Innovation in technology, safety, design

Active Park Assist
• Helps drivers parallel park with the touch of a button • Available in mid-2009 on Lincoln

Environmental Trend
• Oil Price Shock

• Global warming

Environmental Trend
• Ford’s Plan:
“Our plan also includes building on our competence in hybrid vehicles. And $14 billion investment on advance technologies to improve fuel efficiency by over 25%”.

2010 Ford Fusion with better highway fuel economy than Toyota Camry

Attractiveness of External Environment
External Environment

Attractive
Industry Analysis
Competitor Analysis

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