Strategic Management Case Analysis
Lecturer: Dr. Yeap Mohammad Tehrani Nasr
1071200530
Competitive Environment Analysis
Automobile Industry • Market Structure: Oligopoly • Largest auto market: U.S. • 16 million vehicle in year, 22 firms • Big Five: GM, Ford, Toyota, Chrysler and Honda
• • •
Founded: 1908 Headquarters: Detroit, Michigan, USA Employees : 252,000 (2008)
• • •
Founded: 1937 Headquarters: Tokyo, Japan Employees: 316,121 (2008)
• • •
Founded: 1925 Headquarters: Michigan, USA Employees: 58,000 (2008)
• • •
Founded: 1948 Headquarters: Tokyo, Japan Employees: 167,231 (2008)
What is The Ford’s Competitors Objective?
• • • •
Maximum Profit Market share growth Technological leadership Service leadership
U.S. Market Share - 2008 Other 17 Co.
25%
15%
11%
22%
16%
Source: http://www.usnews.com
11%
U.S. Light Vehicle Sale - April 2009 Number
↓33%
↓31%
↓42%
↓48%
↓25%
300,000 250,000 200,000 150,000 100,000 50,000 0
GM
Ford
Toyota
Chrysler LLC
Honda
April 2009
171,258
129,476
126,540
76,682
101,029
April 2008
256,058
188,527
217,700
147,751
135,180
Source: http://online.wsj.co
Total Revenue 300,000,000 250,000,000 200,000,000 150,000,000 100,000,000 50,000,000 -
2006
2007
2008
GM
207,349,000
181,122,000
148,979,000
TM
179,083,000
202,864,000
262,394,000
Ford
160,123,000
172,455,000
146,277,000
84,217,966
94,240,690
121,228,623
HM
Source: http://finance.yahoo.com
Net Income 20,000,000 10,000,000 (10,000,000) (20,000,000) (30,000,000) (40,000,000) (50,000,000)
2006
2007
2008
GM
(1,978,000)
(38,732,000)
(30,860,000)
TM
11,681,000
13,927,000
17,146,000
Ford
(12,613,000)
(2,273,000)
(14,672,000)
5,074,781
5,034,737
6,060,394
HM
Source: http://finance.yahoo.com
Subsidiaries 8 Brands (Ford, Lincoln, Mercury, Mazda, Volvo, Jaguar, Land Rover, Aston Martin)
13 Brands (Buick, Cadillac, Chevrolet, GM Daewoo, GMC, Holden, Hummer, Pontiac, Opel, Saab, Saturn, Vauxhall, and Wuling)
5 Brands (Toyota, Lexus, scion, Daihatsu, Hino) 4 Brands (Chrysler, Dodge, Jeep, Mopar) 2 Brand (Honda, Acura)
Patterns of Target Market • Differentiated marketing
Core Competence
Innovation in service and technology TQM (Total Quality Management) Innovation in technology, safety, design
Active Park Assist • Helps drivers parallel park with the touch of a button • Available in mid-2009 on Lincoln
Environmental Trend • Oil Price Shock
• Global warming
Environmental Trend • Ford’s Plan: “Our plan also includes building on our competence in hybrid vehicles. And $14 billion investment on advance technologies to improve fuel efficiency by over 25%”.
2010 Ford Fusion with better highway fuel economy than Toyota Camry
Attractiveness of External Environment External Environment
Attractive Industry Analysis
Competitor Analysis