Ford and Toyota's competing strategies in the automotive market

¶ … Companies

Ford vs. Toyota

Issues between the two companies as competitors

Both Ford and Toyota are large automotive manufacturing companies that specialize in producing vehicles for the average consumer, as opposed to luxury vehicles. During the 1990s, as SUVs grew more popular, Ford enjoyed some market success with its large suburban off-road vehicles. However, Toyota remained a strong force in the automotive market with its Camry, and other, smaller, more gas-efficient vehicles. With the escalating price of fuel, Toyota's hybrid Prius grabbed headlines while Ford garnered negative publicity because of its financial problems and issues with the pensions and benefits it owed to retired and current workers. Ford has had great difficulty in negotiating with the United Auto Workers Union (UAW). The Japanese car manufacturer Toyota, in contrast, has a younger, nonunion workforce (although highly trained and skilled in Toyota's famous Total Quality Management techniques).

Projected outcome

Ford's most successful fuel-efficient vehicle, the Focus, lacks distinction and has few unique features when compared with the Toyota Corolla. "The family sedan market is shrinking, yet Ford is doubling the number of entries in this segment" including the Taurus (Flint, 2005). In short, Ford flounders, while Toyota reigns supreme, and Toyota seems determined to continue improve upon its strengths, such as its hybrid line, rather than rest on its laurels.