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 15%
25%
17 Co.

11% 22%

11%
16%

Source: http://www.usnews.com
 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
HM 84,217,966 94,240,690 121,228,623

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)
HM 5,074,781 5,034,737 6,060,394

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 Competitor
Analysis Analysis