Case Study Of A. C. F. Limited

1.1 Initial strategy and objectives for company A.C.F. Limited is a motor vehicle company which has been established seven years. The company concentrates on Europe market and which business includes research and development, production and sale motor vehicle. The company vision is offering high performance cars with reasonable prices and providing the cars with highest requirement of safety. The generic strategy of this company is differentiation as which major produce some unique cars to customers in order to attract more customers to increase sales and profits. The initial corporate objectives of A.C.F. Limited are: • To earn a 15% return on investment (ROI) over the next 3 years. • To generate profits of $150m after tax per year for the
Strength Firstly, the price of A.C.F. Limited’s products is reasonable. According to market distribution, shows A.C.F. Limited’s cars are reasonable prices compare with other brands. For the medium size car, the price of the most expensive car is £44,000 of A.C.F. Limited. However, the price of the most expensive car is £55,160 of Super Car Limited (Appendix ??). Besides, A.C.F. Limited focuses on produce quality on products especially in safety aspect. For example, Phoenix and Buffalo allocated 50% and 40% in safety factor
Threat Firstly, refering to the market predictions, the inflation rate is expected to be around 1% in year 8. Increasing the inflation rate may result to all cost as well as it will grow up and reduce customers’ purchase intention. Moreover, the car market is intense competition in Europe. There are many stronger competitors existing in the market. According to Porter (1980), identified that cost leadership, differentiation and focus as three generic strategies which were basic sources of competitive advantage. Its offer a fundamental for all strategic activity and consolidate many marketing strategies available to the