Running Head: BUSINESS STRATEGY 1

Business Strategy

Name

Institution Affiliation
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Business Strategy

Ford Motor Company is a global automotive and mobility company based in

Dearborn, Michigan in America. It was established by Henry Ford and incorporated on June

16, 1903. The company’s businesses includes manufacturing, designing, marketing and

servicing a full line of Ford cars, sport utility vehicles, trucks as well as Lincoln luxury

vehicles. Ford is among the leading automobile brands of the world[ CITATION Abh19 \l 2057 ].

The Ford Motor company understands that business environment globally is transforming in

a more intense and competitive manner, for companies to operate, it is becoming more

difficult and strategically challenging for the purpose of retaining a competitive advantage

and gain profits.

Intensive strategies are used to support organizational growth. In this case, as Ford is

on its mission of becoming leading consumer good provider in automotive industry it

understands the importance of laying a strategic process that will guide in its mission.

Business growth for Ford depends on the varying market penetration, product development,

and business development focus. On the other hand, the general approach used for business

competition is characterized by a standard strategy. With time, the generic approach of Ford

improves, although its initial standardized cost leadership strategy remains an important

force. The standard strategy and intense growth strategies of Ford define the approaches of

the company to develop its business. The whole industry is going through a transitional

period that will allow most companies to focus on making improvements to the strategy for

sales and operations.

Porter regarded understanding both the competitive force and the overall industry

structure as crucial for effective strategic decision making. Porther’s Five Forces analysis ia a

framework that helps analyzing the level of competition within a certain industry and helps
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determine an industry’s weaknesses and strengths[ CITATION Mar18 \l 2057 ]. Usually used in

determining corporate strategy. One of these forces is:

 Potential of New Entrants Into an Industry

The influence of a corporation is also influenced by the impact of new market entrants. The

less money and time a competitor will need to enter the market of a company and be a

successful competitor, the more dramatically the position of a company may be weakened.

The market with large entry barriers is an attractive feature that allows companies to charge

higher prices and negotiate better terms.

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References

Martin, M. (2018). Porter's Five Forces: Analyzing the Competition. Business News Daily,

Small Business Solutions & Inspirations, pp. Retrieved;

https://www.businessnewsdaily.com/5446-porters-five-forces.html.

Pratap, A. (2019). Ford Motors Business Strategy. Business Strategy of Ford Motors, pp.

Retrieved; https://notesmatic.com/2018/09/ford-motors-business-strategy/.
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