The goal of this paper is to deliver a brief overview of the Corporate and Business level strategies of Ford Corporation. Ford Motors is a major automobile manufacturer whose headquarter is located in the city of Detroit USA. It’s an American multinational Corporation having a presence in many parts around the world. Ford Motor is founded by Henry Ford in the year 1903. Ford produces different types of vehicles, which include Luxury Vehicles, Commercial Vehicles, automobiles, Pickup trucks and SUVs. According to the statistics of 2018, the corporation has employed 199,000 workers. In recent years, Ford has faced significant progress & expansion.

Business Level Strategy of Ford Motors

The business level strategy is performed on the divisional level to gain an economical edge over the competitors. The business level strategies help the organization to understand the core competencies of the corporation and to deliver the finest goods/services to the consumers. The business level strategy help the corporation to sustain in the long run and enhance their profits by increasing sales. The key business level strategies include cost leadership, Differentiation, Focused Cost Leadership and focused differentiation strategies. The following are the Business level strategies of the Ford Motor organization (Economist & Kourdi, 2015).

Cost Leadership of Business & Corporate Level Strategy of Ford Motors

The Ford motor company has focused on various business level strategies in order to gain significant market share in the global automotive market. The first business level strategy which the corporation is maintained is the cost leadership strategy. For Ford Cost leadership strategy is helping to produce vehicles at a low cost. Through this, the Ford Corporation gains a competitive edge over its competitors. Through cost leadership strategy, not only the corporation can reduce its costs but also have the opportunity to maximize its profits. The cost leadership strategy allows corporations to provide products on affordable prices, which ultimately increases the sales of the company (Economist & Kourdi, 2015).

Differentiation of Business & Corporate Level Strategy of Ford Motors

Ford Motor Corporation is also implementing the differentiation strategy. Ford motor company knows that if it does provide unique or innovative products to the customers than sustaining, in the long run, it will become difficult for the corporation. The designs of their many vehicles today are modern and unique, which help the corporation to attract a lot of new customers. Ford company pay special attention to the latest technology and Design improvement, which allow them to produce high-quality vehicles. Through differentiation strategy, Ford Company distinguish itself from the rest of the automobile corporations (Moon, 2010).

Focused Low Cost of Business & Corporate Level Strategy of Ford Motors

Ford motors also implementing the Focused low-cost strategy as well in which it is providing the products for specific segments. Through this, the company is meeting the needs of a huge amount of customers. Thorough this the company can reach a large number of customers. If the business level strategies of the Ford Company are analyzed in detail, then it can be said that the integration of differentiation &low-cost strategy will help the corporation to achieve long term success. The reason behind the integration of both of these strategies is that it is highly important to reduce the costs and to provide unique products to the customers.

Strategy important for Long Term Success of Business & Corporate Level Strategy of Ford Motors

Through cost leadership, Ford has the opportunity to gain a competitive edge over the competitors. Ford can provide vehicles on affordable prices if the production cost of the vehicles remain low. It means that through this strategy, the company can enhance customer loyalty. The differentiation strategy of Ford will allow it to stand out in the automotive industry. For increasing sales, it is important to differentiate yourself from the other companies which are present in the automotive industry. Therefore the integration of low cost & differentiation will assist Ford motor to gain long term success (Kreitner, 2008).

Corporate Level Strategies of Ford Motors

The corporate level strategy is formed on the corporate level. It means that the corporate level strategies are usually made by the CEO and Board of directors of any organization. Corporate level strategies have an impact on the whole corporation. The key corporate level strategies of the organization include integration strategies, Concentration strategies, and Diversification and International expansion strategies. The following are the corporate level strategies of the Ford Motor Corporation, which allowed Ford Motor to gain immense growth over the past several years (Spender, 2014).

International Expansion of Business & Corporate Level Strategy of Ford Motors

The international expansion has remained a key corporate strategy of the Ford motors. Ford motor has joint ventures in the country of Taiwan, China, Turkey and Russia. In recent years Ford motor has invested in the R&D facility in China. Ford motor gas also opened a new plant in Tatarstan Russia back in 2011. It can be said that expanding internationally have remained an important strategy for the Ford motor because through this not only the business of Ford motor expands but also the revenue of the corporation expands with the passage of time. The international expansion allows Ford to meet the needs of a huge amount of customers and to compete with other major automotive giants of the world.

Acquisition of Business & Corporate Level Strategy of Ford Motors

In the past, Ford motor owned many automobile companies like Volvo, Aston Martin Jaguar, Mazda & Land Rover. The acquisition allows the organizations to expand their current business and take advantage of the strategies of the acquired organizations. However, in recent years, Ford has to sell most of its acquired corporations. In future Ford still, have the opportunity to perform acquisition not only for business expansion but also for gaining competitive advantage on the competitors. Through the acquisition, Ford can create a major brand portfolio which would increase the market value of the corporation up to a lot of extents (Economist & Kourdi, 2015).

Strategy significant for Long Term Accomplishment

The acquisition Strategy has the possibility to bring long term success for the organization. Through the acquisition, the company can take benefit from the R&D strategies of the acquired company. The skills & capability which the other company have when combined with Ford’s strategy than Ford would definitely achieve success. Moreover, this will help Ford to create a strong brand portfolio which would ultimately increase the worth of the organization. Through the acquisition, the company can expand its product & services to many parts of the world, which will allow the company to take benefit from the economic conditions of various countries. It can be said that through an expansion the company can also minizine the risks because if the company operates in only one geographic location than the sudden changes in one geographic location have a huge impact on its performance. But after operating in various geographic locations, the company have the opportunity to minimize the risk.

Competitor Environment of Business & Corporate Level Strategy of Ford Motors

In order to analyze the competitive environment of the organization, Porter five model has been utilized. Through porter, five forces model, the level of competition in the particular industry can be analyzed.

Porter Five Forces Analysis of Business & Corporate Level Strategy of Ford Motors

Bargaining Power of Buyers of Ford Motors

For Ford organization bargaining power of buyers is moderate to high because there are many substitute products which are available to the customers. The automobile giants such as Toyota, Volkswagen and Daimler are providing a variety of options to the customers and if Ford motors unable to provide products to the customers according to their preferences than the customers can switch to other automobile brands such as Toyota and Volkswagen

Bargaining Power of suppliers of automotive industry

In automotive industry the bargaining power of the supplier will be moderate because Ford is an established brand and is in the position to bargain with the supplier. Therefore the bargaining power of supplier would be moderate in the automobile industry (Kotler, 2008).

Substitute for Product of automotive industry

The risk of substitute product is high because there are many automobile manufacturers in the international market. Toyota is considered to be the largest competitor of Ford because not only Toyota has gained a competitive edge in hybrid cars but also able to gain significant market share. Therefore If Ford unable to attract the customers than Toyota will have the opportunity to grab a significant amount of customers.

The threat of New Entry of automotive industry

The threat of new entry is low because assembling a Car manufacturing plant requires a huge amount of investment. Furthermore, it requires time to create a strong brand image. Ford and Toyota, over the years, have able to establish a strong brand which a new company cannot establish overnight. So it can be said that the threat of new entrant would be low.

Rivalry among Competitors of automotive industry

The Competition among the competitors is moderate. Both Toyota & Ford are competing with each other for increasing their market share (Corum, 2015).

Ford’s Most Significant Competitors & Success in Long Run

Through analyzing the competitive environment, it can be said that the level of rivalry in the auto industry is moderate to high. Toyota Corporation is the largest competitor of Ford. Toyota is considered to be the second largest automobile manufacturer. Therefore the Toyota Corporation is in the position to achieve success in the long run. Toyota produces unique products and becomes a leader in hybrid vehicles. However, the Ford Corporation also have the opportunity to increase the market share through continuous improvement. Currently, Ford is the fifth largest manufacturer of the automobile in the world and have the potential to grow further in the future. The high level of competition can create hurdles for the company, but through its business & corporate level strategies, the business can compete with its competitors.

The Slow & Fast Cycle Markets of automotive industry

In the slow cycle markets, the economic benefit is protected from imitation. In a slow cycle, the organization is in the position to create a competitive advantage with other organization does not have. Through this sustaining in the long run, becomes possible. In a slow cycle, Ford Corporation would be more successful because not only its competitive advantage would allow it to withstand in the long run, but also other corporation cannot imitate its Strategies. In Fast Cycle Market, Toyota would be more successful because, through imitation of successful strategies, a company can achieve its goals.

Conclusion on Business & Corporate Level Strategy of Ford Motors

If all the overhead conversation is concise than it is clear that the Ford motor company has focused on various business level strategies in order to gain significant market share in the global automotive market. The first business level strategy which the corporation is maintained is the cost leadership strategy. For Ford Cost leadership strategy is helping to manufacture vehicles at a low cost. Ford Motor Corporation is also implementing the differentiation strategy. Ford motor company knows that if it does provide unique or innovative products to the customers than sustaining, in the long run, it will become difficult for the corporation. The integration of low cost & differentiation will assist Ford motor to gain long term success the integration of low cost & differentiation will assist Ford motor to gain long term success.

The acquisition Strategy has the possibility to bring long term success for the organization. Through the acquisition, the company can take benefit from the R&D strategies of the acquired company. The skills & capability which the other company have when combined with Ford’s strategy than Ford would definitely achieve success. Through analyzing the competitive environment, it can be said that the level of rivalry in the auto industry is moderate to high. Toyota Corporation is the largest competitor of Ford. Toyota is considered to be the second largest automobile manufacturer. Therefore the Toyota Corporation is in the position to achieve success in the long run. Toyota produces unique products and becomes a leader in hybrid vehicles.

References of Business & Corporate Level Strategy of Ford Motors

Corum, R., (2015). Principles of Management: a Christian Perspective. WestBow Press.

Economist, T., & Kourdi, J., (2015). Business Strategy: A guide to effective decision-making. PublicAffairs.

Kotler, P., (2008). Principles of Marketing. Pearson Education, India.

Kreitner, R., (2008). Principles of Management. Cengage Learning.

Moon, H.-C. (2010). Global Business Strategy: Asian Perspective. World Scientific.

Spender, J.-C., (2014). Business Strategy: Managing Uncertainty, Opportunity, and Enterprise. OUP Oxford.