Case #31: Ford
1. What are key forces in the general and industry environments that affect Ford’s choice of
strategy?
• The economy was slowing down and not as good causing consumers to purchase
less vehicles
• Competitors from different countries were entering and capturing the attention of
consumers with improved vehicles
• Competitors such as Toyota faced issues with acceleration problems and had
many recalls
• Consumers were looking for cars that were more fuel efficient
• Oil prices were steadily increasing causing big car sales to decrease
2. What internal resources and assets does Ford have that may give it a competitive
advantage?
• Ford owned many plants around the world – selling some plants allowed it have
liquid cash assets
• Ford F-Series trucks were successful vehicles – In 2013 F-series was ranked
America’s top-selling vehicle for the 32nd consecutive year
• Ford owned many brands of cars, and sold off those brands to cut costs and focus
more on Ford products
• Design of new products such as Ford Fusion sedan and Ford edge crossover
3. How should Ford compete?
• Focus more on fuel-efficient vehicles for their small and truck models.
• Differentiate the cars the sell in different countries to fit more consumers needs in
those markets
• Restructure Lincoln brand to be more competitive
• Add more value to the Ford cars making it more appealing for consumers to
purchase their vehicles.
4. What has Mulally done to implement strategy and what challenges remain?