Business

Business

Business Orientation

Ford Case Study

Main Auto Industry Drivers to be Successful

According to the global automobile industry, there are a number of prominent drivers that could lead an automobile company to the path of success. It is very important to for the a reputed automobile organization like Ford to identify these drivers and shape their activities in order to be successful in the automobile industry. These drivers that affect the performance and success of an organization in the industry include the competitors in the industry, issues of the supply industry, laws and regulations prevailing in the industry and the region of operations, the demand of the consumers and the technological advancements that are introduced in the industry. These are the main drivers which influence the success of an organization in the industry (Laux, 1992, pp. 34).

There are some critical success factors and four generic strategies that could be applied by an organization to face the drivers that influence the success of an organization and bring out positive results and gain competitive advantage over other companies in the automobile industry. A positive image must be created by the organization in the market so that the consumers could trust the organization for purchasing their products. Distribution network of the company should be very strong and distribution deficiencies should be reduced. Another important success factor for an automobile organization would be their cash flows. The organization should make sure that the cars that they produce are in relation and compliance with the laws and regulations of the entire industry. The organization should also focus on being flexible about their products and adapt to the changes in the technological environment.

These are the most significant success factors that could help an organization get a competitive edge over their competitors. An organization could select one or more generic strategies to gain competitive advantage over their competitors in the industry. These strategies include the cost leadership strategy, Differentiation Strategy, Focus Strategy and the Integrated Cost Leadership-Differentiation Strategy. An organization could emphasize on any one or more strategies to gain competitive advantage over its competitors and gain success in the automobile industry.

Ford's 2000 Globalization Plan

Ford's 2000 Globalization Plan was the most successful plan in the history of Ford and it gave rise to various changes in the organization. The major purpose of this plan was to achieve product and manufacturing excellence globally by combining all the aspects of the organization. This was a major challenge for Ford to reorganize their operations to justify the strategic reorganization. Through this plan, the company has reduced their cost along with the improvisation of their products. This plan has also enabled them to be flexible in manufacturing the cars and responding to the demands of the consumers effectively. The rationale behind the Ford's 2000 Globalization Plan is basically to lead the organization to the path of success and be the leader in the industry in the 21st century.

This plan improved the performance of Ford to a great extent within the decade and enabled the ...