Ford Motor Company Marketing Plan: Strategy & Analysis

Company History and Environmental Analysis

Ford Motor Company completed 100 years in 2003 to become one of the world's largest corporations. Few companies are considered as synonymous with the history and development of an industry — and of society throughout the 20th century — as Ford Motor Company. The company's most remarkable contribution to automotive manufacturing was the moving assembly line, implemented at its Highland Park facility in Michigan in 1913. The new technique permitted individual workers to remain positioned at a particular station and perform the same task consistently on multiple vehicles as they passed by. This ensured immense efficiency, enabling Ford to produce more vehicles than the competition at a lower price. Founder Henry Ford believed that the future of the company lay in the production of cars affordable to the mass market.

Making its debut with the Model T in 1908, Ford went on to manufacture 15 million of them. In 1925, the company acquired Lincoln Motors, thereby diversifying into luxury cars. During the 1930s, the Mercury division was created to target the mid-priced car segment. The 1950s saw the arrival of the Thunderbird, and in 1967 Ford expanded globally into Europe. Today, Ford is a formidable name in the world of automobiles, with enviable brands including Ford, Lincoln, Mercury, Mazda, Jaguar, Land Rover, Aston Martin, and Volvo. Entering its second century, Ford is a global organization that honors Henry Ford's heritage by developing products that serve the diverse and constantly changing needs of people around the world.

SWOT Analysis

Strengths

Ford has been a frontrunner in research on new, clean fuel technology with enough promise to replace gasoline-powered engines in the future. Its fuel cell technology is focused on an electric engine that uses hydrogen fuel — rather than batteries — and emits only water as a byproduct. Another model under development is the Modular Hybrid Transmission System, which uses an electric motor and a hydrogen internal combustion engine in a parallel arrangement that can run on either or both power sources. Its emissions contain no pollutants and it is 25% more fuel efficient compared to gasoline. Ford's long-standing unique selling proposition has been passenger safety; the company has continually worked to improve airbag and safety belt performance and to invent ways to minimize injuries in rollover accidents.

Weaknesses

Outstanding debt has been a persistent area of concern for Ford, which has been required to reserve more than $25 billion in cash to help defer some of its obligations, causing its stock prices to suffer. The company had not yet recovered from losses of $5.45 billion in 2001 and $980 million in 2002. The overall poor performance of car sales and the broader economy added further pressure. Ford's inventory levels stood at 83 days, indicating the need to cut production.

Opportunities

Ford's pioneering work in new technologies encompasses several advanced research efforts. First, diesel-powered light-duty vehicles are being developed and tested, with plans to launch a diesel-powered Ford Focus for the North American market. Diesel technology provides fuel efficiency advantages in the range of 25% to 30% compared to gasoline vehicles, with a corresponding 20% to 25% reduction in carbon dioxide emissions.

Second, the Ford Focus Fuel Cell Vehicle (FCV) was undergoing fleet testing in the United States and Canada. The hydrogen-fueled program is part of a three-year initiative designed to test fuel cell vehicles in real-world applications. The program's goals include testing the technology, assessing driver acceptance, evaluating comfort with hydrogen fueling, and generating public awareness of both the advantages and challenges of fuel cell technology. The Ford Focus FCV produces zero emissions, and fuel cell technology has been shown to deliver approximately twice the fuel economy of gasoline and diesel engines.

Third, the Ford Model U concept is equipped with the world's first supercharged internal combustion engine (ICE) optimized to run on hydrogen fuel. This research project is viewed as a launching pad toward hydrogen-fueled mass transportation that will ultimately incorporate fuel cells. Like the diesel engine, the hydrogen ICE has the potential to achieve efficiency levels nearly 25% better than gasoline engines.

Threats

Competitive threats from rival automakers such as Toyota — which has also adopted hybrid gasoline-electric motors — risk eroding Ford's competitive edge in fuel efficiency. With record fuel prices curtailing demand for conventional automobiles, hybrid gasoline-electric technology is becoming a standard feature across major manufacturers including Honda and BMW. Notably, Ford acquired its hybrid technology from Toyota. Toyota has also been an early adopter of environmental technology and is expected to continue that pursuit aggressively. With public policy increasingly demanding reduced vehicle emissions and cleaner fuels, the coming years present a significant leadership challenge in these areas (Katz & Inque, 2005).

Corporate Objectives and Organizational Resources

Ford's overall corporate objectives revolve around its vision to be the world's leading consumer company for automotive products and services, providing personal mobility for people around the world. This includes anticipating consumer needs and delivering outstanding products and services that help people improve their lives. Ford's commitment to environmental responsibility and improved fuel economy is demonstrated through its support of breakthrough technologies, including customer incentives for fuel cells, hybrid electric vehicles, and alternative-fuel vehicles.

Ford is dedicated to bringing environmentally responsible and life-saving technologies to market at scale, a commitment embodied in its Cleaner, Sooner, Safer policy. The company aims to meet safety and environmental standards ahead of regulations whenever the technology is proven and the cost is affordable to customers. Ford has been an industry leader in introducing the Personal Safety System, which combines several technologies to protect front-seat occupants in head-on collisions.

In terms of organizational resources, Ford's most valued asset has been its application of the latest technology across all aspects of its vehicles — engine technology, fuel efficiency, passenger safety, and new model development. The company has taken a leadership role in fuel cell technology, which ensures zero tailpipe emissions and holds potential to replace conventional vehicles. To support this, the Freedom Car initiative was launched with $1.2 billion in research funding announced by President Bush, representing a joint government and auto-industry partnership administered by the Department of Energy.

Leadership has also been considered a key organizational strength. Veteran leaders such as Allen Gilmour, who came out of retirement to serve the company again, exemplify Ford's leadership depth. CEO Bill Ford significantly promoted the company's fortunes by reducing costs — achieving a reduction of approximately $240 per vehicle and cutting overhead costs by $2 billion. The company also divested more than $1 billion in assets, substantially improving its cash position.

Ford has long been a leader in the strategic implementation of information technology. Since its inception in the 1980s, Ford's intranet evolved from a basic search engine into a highly customized work environment supporting new business models and new ways of working for Ford employees worldwide, generating 150,000 hits daily from 800 facilities and 150 manufacturing plants around the world. The platform, known as eRoom, serves as the cornerstone of Ford's extended enterprise collaboration, providing the security and flexibility needed to deploy strong collaborative solutions throughout the entire enterprise while integrating seamlessly with Ford's existing technology infrastructure.