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Ford Motor Company’s Value Enhancement Plan (A) Case Solution & Answer

Ford Motor Company’s Value Enhancement Plan (A)

Value Chain Analysis

For understanding the Ford motor corporation’s competitive advantage and the value of corporation, the value chain analysis is used to understand the company’s products and services value. (Wee H. M., 2009)

The value chain analysis of the tesla has five steps.

  • Inbound logistics
  • Tesla’s Operations
  • Outbound logistics
  • Marketing and sales of Tesla
  • Services of Tesla

Inbound Logistics

Ford motor corporation inbound logistics are convoluted in storage of solar panels, raw materials and energy storage system for the production of vehicles. Company purchase the raw material from many countries of the world. The company knows the value of loyal suppliers and keeps its relations with them.

Ford Motors Operations

The operations of the company are divided into 2 parts. One is storage of energy and generation and the other is automotive. In Automotive Operations Company, focus on the designs, manufacturing, rising and trades of the electric vehicles. In the other part, the company store the factors which relate with the automobiles manufacturing, like raw materials and energy.

Outbound Logistics

After the manufacturing of electric vehicles, the next step for the company is outbound logistics, which means now the company is moving towards the distribution of vehicles in markets. The company distributes the trucks and vehicles and other manufactured products in the parent’s market country and also in other countries where the company operates its operations.

Marketing and Sales of Ford Motors

The marketing and sales channel of the Ford motor corporation is also strong the company market the products through the promotions and advertisements. The company sells the vehicles through personal and direct selling.

Services of Ford Motors

The customers are satisfied with the services of the Ford Motor Corporation. The company has an individual center for customer care center operates 24/7 for the resolving of customers’ problems relating to vehicles.

Porters Five Forces Model

Bargaining Power of Suppliers

The Ford Motor Corporation has a moderate bargaining power of suppliers. The corporation is too old many of the suppliers are very loyal to the owner of company but some are new suppliers because of enhancement in technology so they bargain sometimes because of competition in industry.

Bargaining Power of buyers

The bargaining power of the buyers is high for the Ford Motor Corporation. Competition is high in the automobile industry. The customers have many options because competitors target the market that’s why the customers bargain.

Threat of New Entrants

The company has lower threat of new entrants because the Ford Motor Corporation offer the diversified products from a very long time and the customers are satisfied with their products and the loyalty of customers is high that’s why this threat is negligible for the Ford Motor Corporation.

Threats of Substitutes

The Ford Motor Corporation has the high threat of substitute because of inflation and other economic factors, the purchasing power of the customers affected which increase the threat of substitute for corporation.

Competitive Rivalry

The rate of competition is high in the industry of automobile manufacturing. Some competitors of the Ford Motor are Tesla, Honda, Toyota and general motors. The major competitor of the company is General Motors. The general motors compete the corporation in pricing as well as manufacturing of vehicles. (Kothandaraman, 2001)

Market Segments

Ford Motor Corporation divides the market into 3 different segments and then targets each segment according to their factors.

  • Geographical Segmentation
  • Demographical Segmentation
  • Psycho Graphical Segmentation

Geographical Segmentation

Geographically, Ford Motor Corporation targets those cities whose population, income, and budget are high.

Demographical Segmentation

Demographically Ford Motor Corporation targets the people of mid-aged in which youth generation is also included. Ford Motor Corporation also targets people with having a high level of income who have the purchasing power to fulfill the desire of purchasing an automobile from the Ford Motors.

Psycho Graphical Segmentation

Ford Motor Corporation targets customers psychologically based on their taste of flavor regarding the products. The company targets high-class level people who are status-conscious.

Marketing Objective

The Ford Motor Corporation targets many investors, customers and Car Dealers through social media and digital media this time they are also planning to market through print media. Social Media Marketing includes the YouTube channels, Facebook, Twitter. Company has launched many microsites as well to target the customers in the world. It uses a marketing mix strategy in America. (Perold A. F., 2001)This marketing Mix strategy is continually helping company in its growth for many years. Hits the customers who are having an upper class financially stable background in the society.

  • Targets all those professionals who have previously shown interests in the technology or somehow are related to the modern technologies, vehicles styling and interior.
  • The Ford Motor Corporation aims to reach the top level in fulfilling the customer’s satisfaction.
  • Target Young wealthy Individuals through different strategies of marketing.
  • To get more and more customers by providing a flawless experience.
  • To grow our business by maintaining our legacy and Service.
  • To make new customers and Dealers.
  • To monitor the buying habits of buyers and bring new features according to their interests.
  • Retain existing customers by marinating standard.
  • Achieve Competitive benefits in the luxury car market.

Recommendations

After analyzing the whole case of Ford Motor Corporation, a few points we should recommend for the future growth of the company. The Ford Motor must attract the more investors towards the corporation by offering them good dividends. Company can repurchase its shares from the market from those investors who trying to sell the shares of the corporation.

The Ford Motors Corporation can increase its productivity by investing the keep cash in opportunities. The company increase the value and control of the corporation by adapting these recommendations.

Conclusion

After completing all the Case study, we conclude the Analysis by summarizing all the main points in the conclusion. The corporation earns a lot of revenue from its trucks and other automobile vehicles. In advanced countries, the corporation expands its business and increases its product portfolio. The competition of the Ford Motors is also high in the industry the General motors constantly compete with Ford Motors. Excellent quality and reasonable prices are what the Ford Motor Company offers. The brand image, market value and customers’ loyalty of the corporation is high, which the Competitive advantage is also for the corporation….

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