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Ford World Automobile Industry 2009
Which companies are likely to be most successful over the next five years?
The companies likely to experience the greatest market success in the coming years are those that find a way to simultaneously innovate and, in the case of the Detroit Big 3 especially, find intuitive ways to reduce their capacity. Something that the case study published in the text by Grant (2009) makes quite clear is the notion that the American automotive market's crisis was essentially predicated by a series of assumptions that haven't evolved in several decades and by an oversaturated marketplace.
The text reports that, in fact, in the face of the growing financial crisis, "by the time President Obama took office in January 2009, U.S. auto sales were half of those a year previously. This fall in demand was unprecedented in the industry's history." (Grant, p. 534) The article goes on to surmise that the government...
To this last point, Detroit continued to pump out cars at a rate tat the market could no longer bear, leading to the meltdown of 2009. As one evaluates the market share of GM and Chrysler in particular, their influence has waned dramatically from 1988 to 1996, a period in which the market share of Toyota and Honda have also risen dramatically. (Grant, p. 546)
Ford's market share has also declined significantly, though slightly less so than that of its counterparts among the Detroit Big 3. A natural impact of the opening of global borders to international trade, this…
Works Cited:
CNN. (2011). Global Fortune 500. CNNMoney.
Grant, R.M. (2009). Contemporary Strategy Analysis, 7th Edition. John Wiley & Sons.
Ford Mustang Financials As a company, Ford has improved its sales in the past two years, after struggling during the recession. Ford's revenues in the last fiscal year (2011) were $136 billion, compared with $116 billion in FY2009 and $168 billion in FY2007. The company's profits have also fluctuated over that time period. FY2011 saw a profit of $20.2 billion, compared with $2.7 billion in FY2009 and a loss of $2.8 billion
The economic environment is difficult. The United States may finally be showing signs of emerging from recession, but the recent economic difficulty has taken its toll of Ford. Following the short-lived spike provided by the 'cash for clunkers' program, auto sales have slumped again. Many competitors saw sales fall dramatically in the wake of that program. Ford, however, did not suffer as much. While two of its most popular models,
Ford Motor Company was an early pioneer of industrial production, with Ford having developed the assembly line production of automobiles and used this to capture a dominant position in the U.S. automobile market. The company has remained dominant but fell upon difficult times in recent years due to a combination of poor product/marketing and high pension obligations. The company has begun to revive its fortunes in the past couple of
Unlike with Korea or Japan, China's auto industry is not a home-grown enterprise but rather relies on foreign direct investment (Tang, 2009). Volkswagen, GM, Japanese and Korean companies have all entered the Chinese market through JVs with local concerns (Ibid). The trend towards consolidation is driven by the increasing dominance of the world's largest automakers. Smaller national automakers are becoming obsolete, and some nations have seen their automobile production
Ford Motor Company was the only one of America's Big Three automakers to turn down government assistance in 2009. The company wanted to maintain its independence, and believed that the strategies that were in place were going to be sufficient to bring about the financial recovery of the firm. In the past couple of years, the company has revamped its product line, cut its expenses, and sought to take advantage
Ford Motor Introduction of the company - Ford Ford Motor Business began in 1903 by Henry Ford and it has constantly remained within family group possession ever since that period. The business created and applied assembly line manufacturing from the launch of the Model T. In the year 1909, and created planes and automobiles for U.S. Allies in The Second World War. Ford has worked globally since 1904, in the event it