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Case Analysis Ford Motor Company

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Case Analysis Ford Motor Company
Introduction
Ford Motor Company is one of the largest multinational automaker in the world and part of the Detroit Big Three, along with GM and Chrysler. Since its inception in June 16, 1903, Ford has gone through many ups and downs. Competition from domestic and international manufacturers, globalization, advancements of technology and the great economic downturn in 2007-2008 meant that Ford had to rethink several of its strategic decisions if it had to survive in the marketplace.
When Henry Ford started the company, automobiles were a luxury good that could only be afforded by the rich. He wanted to provide these vehicles to the general public at an affordable price, because Ford believed that this product had the potential to transform society. As such, he focused on production and supply chain efficiency related to the implementation of the assembly line manufacturing process and Ford’s vertically integrated supply chain to produce automobiles at a mass scale.
The US auto market was primarily dominated by the US Big Three, but this changed during the early 70s and 80s. The increase in gas prices and need for fuel efficient vehicles saw consumers seeking out for Japanese imports, which met the new fuel efficiency standards. The market already was beginning to get competitive. In order to act, Ford tried to cut it costs by downsizing its workers and plants, whereas the need was fuel efficient cars. Ford later regained some of its market in 1988 by diversifying its product offerings by purchasing luxury European brands. It tapped the Chinese market as well beating GM in 1997. Ford had to cut many of its workforces and sell many of its plants during these periods in order to keep costs at a minimum level. The economic downturn of 2007-2008 saw the automobile manufacturers taking a big hit. They were reduced to a position where they needed to ask the US government for a $34 billion bailout. Many uncertainties remained as to what had to be done to sustain in the

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