Ford Motor Company Essay

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Ford Motor Company: A Strategy Perspective Regina Wilkinson, M.S. OM8012 - Strategy Spring 2009 Capella University In partial fulfillment of PhD requirements Table of Contents Page I. Auto Industry: A Brief History 3 II. Ford’s Viability 4 III. Applying the Five Forces 6 IV. Strategic Perspectives 12 V. The Value Chain 14 VI. Financial Performance 15 VII. Conclusion 16 VIII. References 17 VIIII. Appendices Appendix A – Operating Highlights 2004 21 Appendix B – Operating Highlights 2005 22 Appendix C – Operating Highlights 2006 23 Appendix D – Operating Highlights 2007 24 Appendix E – Operating Highlights 2008 25 Ford Motor Company: A Strategy Perspective The Auto Industry: A Brief History Parallels exist between the Great Auto Industry Crisis of the 2008 and the auto crisis of the 1930’s. In 1929, the total US vehicle market was a little over 5 million vehicles. Auto sales suffered precipitous drops between 1929 and 1932, down over 70% during this period. By 1934 sales were up but the market was half its 1929 size, with total vehicle sales being around 2.5 million cars. Ford, the second most popular vehicle behind Chevrolet at the time, was reluctant to make changes to the successful Model T, but finally responded to market pressures by introducing the Model A, the author suggests this action was too late. Then as now it appears technological revolution is changing the structure of the auto industry. Ford Motor Company is the oldest US auto company. Its North American brands include Ford, Lincoln, Mercury, Mazda and Volvo. The company bought Land Rover in 1989 and Jaquar in

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