...achievement from a company, a country or at the very least a non – financial institute to achieve strategic success. Ford Motor Company has in recent times lost its market share to emerging Asian companies such as Honda, Toyota, Hyundai and Nissan. As a new landscape of economic might surfaces, new car stereotypes are emerging. Finding a place in these segments is proving difficult for Ford Motors and hence need to change its strategies. Hyper-competition combined with tough economic times has pushed Ford to the edge of insolvency. This paper examines the issues that plague the company while using published models to make analysis on how and why the problems occur to better understand their potential impact on the company’s sustainable competitive advantage. Recommendations will seek to give strategic solutions to address the issues identified earlier. This research isn’t structured upon models to identify, analyze and solve issues but rather looks at the core of the problems within Ford Motors and provides models to analyze and solve the issues. TABLE OF CONTENTS Contents INTRODUCTION 1 SECTION 1: STRATEGIC ISSUES AT FORD 2 Underlying Issues at Ford Motor 2 1. Financial 3 2. Competition 4 SECTION 2: STRATEGIC MODELS AND FRAMEWORK SUITABLE FOR ISSUES IDENTIFIED 6 2.1. Competitor Analysis 6 2.1.1 Porter’s 5 Forces Analysis 7 2.1.2 SWOT ANALYSIS 11 2.2 Financial...
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...AUTOMOTIVE INDUSTRY ANALYSIS Submitted by Team A Donald Bradley Morgan Bruns Adam Fleming Jay Ling Lauren Margolin Felipe Roman Presented to: Prof. Alan Flury December 5, 2005 ME 6753: Principles of Management for Engineers Executive Summary Chosen industry: This analysis focuses on the automotive industry, specifically, large-scale manufacturers of automobiles. The automotive industry is inherently interesting: it is massive, it is competitive, and it is expected to undergo major restructuring in the near future due to globalization and decreasing oil reserves. The analysis team members (we) feel qualified to perform this investigation due to our familiarity with the industry and our education—several of us have studied and worked on problems associated with automobile manufacturing and we are all mechanical engineering graduate students. Analysis Methodology: The report begins with a historical overview of the automotive industry. This is followed by an analysis of the industry’s structural characteristics using Porter’s 5 Forces Model as a framework, which provides an understanding of the automotive industry as a whole in its current state. Next, ten representative companies of varying sizes are analyzed and compared; the chosen companies and selection criteria follow. General Motors, Ford, and Toyota were chosen because they are the current market leaders. DaimlerChrysler, Nissan, Volkswagen, and Honda were chosen because of their status as stable international...
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... Contents : Executive Summary ……………………………………………... 3 Introduction …………………………………………………….... 4 - - - - - - Mission Statement ……………………………………. 4 Company History & Present Situation ……………… 5 Elon Musk’s History ………………………………….. 6 Business Model & Retail Strategy ………………......... 7 Product Mix & Marketing Activities …………………. 9 The 4 M’s of Advertising ………………………………. 10 Internal Analysis ………………………………………………….... 11 - - - Organizational Culture ………………………………… 11 Organizational Structure ………………………………. 12 Unique Resources and Capabilities ……………………. 13 External Analysis ………………………………………………….... 14 - - - Customers and Competitors ……………………………. 14 Porter’s 5 Forces ………………………………………… 16 PEST Analysis …………………………………………… 18 SWOT Analysis ………………………………………………………. 21 Innovation …………………………………………………………….. 22 Strategic Framework & Strategic Alternatives …………………….. 23 Implementation ……………………………………………………….. 24 3 Executive Summary : The intent of this project was to learn more about Tesla’s present situation and learn about what their goals are for the future. We chose Tesla for this project because collectively, we feel that it is one of the most groundbreaking companies to emerge in our...
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...QuickMBA / Strategy / Porter's 5 Forces Porter's Five Forces A MODEL FOR INDUSTRY ANALYSIS The model of pure competition implies that risk-adjusted rates of return should be constant across firms and industries. However, numerous economic studies have affirmed that different industries can sustain different levels of profitability; part of this difference is explained by industry structure. Michael Porter provided a framework that models an industry as being influenced by five forces. The strategic business manager seeking to develop an edge over rival firms can use this model to better understand the industry context in which the firm operates. Diagram of Porter's 5 Forces | SUPPLIER POWER Supplier concentration Importance of volume to supplier Differentiation of inputs Impact of inputs on cost or differentiation Switching costs of firms in the industry Presence of substitute inputs Threat of forward integration Cost relative to total purchases in industry | | THREAT OF NEW ENTRANTS Barriers to Entry Absolute cost advantages Proprietary learning curve Access to inputs Government policy Economies of scale Capital requirements Brand identity Switching costs Access to distribution Expected retaliation Proprietary products | | THREAT OF SUBSTITUTES -Switching costs -Buyer inclination to substitute -Price-performance trade-off of substitutes | | BUYER POWER Bargaining leverage Buyer volume Buyer information Brand identity Price sensitivity...
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...positioned around factors such as better fuel efficiency, reliability, ease-of-use and economy of usage. Its first prototype, the kdF-Wagen, had a distinctive round shape to its design (the Beetle continues with this design even today) and had about 336,000 takers. By 1946, the Wolfsburg factory was producing close to 1000 cars a month, a remarkable feat in those times. Post the 2nd World War, Volkswagen served as an icon for the resurrection of West Germany, and showed signs of international expansion by selling its first model in the United States of America in 1949, and its sales services were standardized there by 1955. The Golf Type-I model, was given the title “Beetle” by the quirky, hugely popular advertisement campaigns run in the U.S. then, and was officially adopted by Volkswagen only in 1998. By 1961, VW expanded its production line to include Type-III and Type-IV models, and in 1964, VW bought over the Auto Union and the NSU, successfully creating a merger between the two companies creating the modern day firm Audi, while providing technical expertise to VW. Fig: Time-line of VW models from 1940 to 1975 Between 1974 and 1990, VW began to expand its range of cars, and almost mirrored those of the giant German auto manufacturers such as BMW and so on. Expansion plans included moving to Spain, via the purchase of SEAT, a Spanish automobile...
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...Copyright Copyright © 2012 Joan Magretta All rights reserved No part of this publication may be reproduced, stored in or introduced into a retrieval system, or transmitted, in any form, or by any means (electronic, mechanical, photocopying, recording, or otherwise), without the prior permission of the publisher. Requests for permission should be directed to permissions@hbsp.harvard.edu, or mailed to Permissions, Harvard Business School Publishing, 60 Harvard Way, Boston, Massachusetts 02163. ISBN: 978-1-4221-6059-6 By his example, Arthur Rosin, my uncle, taught me the pleasures of understanding and explaining. This book is dedicated to him, to Betty Rosin, and to my parents, Cyrille and Eugene Gorin. Contents Copyright Acknowledgments Introduction Part One: What Is Competition? 1. Competition: The Right Mind-Set 2. The Five Forces: Competing for Profits 3. Competitive Advantage: The Value Chain and Your P&L Part Two: What Is Strategy? 4. Creating Value: The Core 5. Trade-offs: The Linchpin 6. Fit: The Amplifier 7. Continuity: The Enabler Epilogue: A Short List of Implications FAQs: An Interview with Michael Porter A Porter Glossary: Key Concepts Chapter Notes and Sources About the Author Acknowledgments The Michael Porter I know is first and foremost a gifted teacher. If this book succeeds in helping readers understand Porter’s ideas in their full richness, it is thanks in large measure to his encouragement, his guidance, and his patience in explaining...
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...How Tesla Motors can manage the extreme competition from large and premium manufactures Daniil Chaika (119102547) Workshop Tutor: John Davison SIM336 - Strategic Management ------------------------------------------------- Contents 1.0 Introduction ……………………………………………………………………………….3 2.0 Company Background………………………………………………………………….….3 3.0 PESTEL Analysis……………………………………………………………...…………..3 4.1. Political……………………………………………………………………………..3-4 4.2. Economic……………………………………………………………………………...4 4.3. Social………………………………………………………………………………….4 4.4. Technological…………………………………………………………………………4 4.5. Environmental………………………………………………………………………...5 4.6. Legal…………………………………………………………………………………..5 4.0 Porter’s 5 Forces Analysis…………………………………………………………………5 5.7. The Threat from New Entrants……………………………………………………..5-6 5.8. The bargaining power of Buyers……………………………………………………...6 5.9. Threat of Substitution…………………………………………………………………6 5.10. The bargaining power of Suppliers…………………………………………………..6 5.11. The Intensity of Rivalry in the Industry……………………………………………6-7 5.0 Value Chain Analysis (VCA)……………………………………………………………...7 6.12. Primary Activities…………………………………………………………………..7-8 6.13. Support Activities…………………………………………………………………..8-9 6.0 SWOT Analysis……………………………………………………………………………9 7.14. Strengths…………………………………………………………………………..9-10 7.15. Weaknesses………………………………………………………………………10-11 7.16. Opportunities………………………………………………………………………...
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...How Tesla Motors can manage the extreme competition from large and premium manufactures Daniil Chaika (119102547) Workshop Tutor: John Davison SIM336 - Strategic Management ------------------------------------------------- Contents 1.0 Introduction ……………………………………………………………………………….3 2.0 Company Background………………………………………………………………….….3 3.0 PESTEL Analysis……………………………………………………………...…………..3 4.1. Political……………………………………………………………………………..3-4 4.2. Economic……………………………………………………………………………...4 4.3. Social………………………………………………………………………………….4 4.4. Technological…………………………………………………………………………4 4.5. Environmental………………………………………………………………………...5 4.6. Legal…………………………………………………………………………………..5 4.0 Porter’s 5 Forces Analysis…………………………………………………………………5 5.7. The Threat from New Entrants……………………………………………………..5-6 5.8. The bargaining power of Buyers……………………………………………………...6 5.9. Threat of Substitution…………………………………………………………………6 5.10. The bargaining power of Suppliers…………………………………………………..6 5.11. The Intensity of Rivalry in the Industry……………………………………………6-7 5.0 Value Chain Analysis (VCA)……………………………………………………………...7 6.12. Primary Activities…………………………………………………………………..7-8 6.13. Support Activities…………………………………………………………………..8-9 6.0 SWOT Analysis……………………………………………………………………………9 7.14. Strengths…………………………………………………………………………..9-10 7.15. Weaknesses………………………………………………………………………10-11 7.16. Opportunities………………………………………………………………………...
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...Global Automobile Industry: Changing with Times By Chithra Gopal R.S., M.Sc (Agri) Executive Summary From a humble origin as a ‘horseless carriage’ manufacturing industry dating back to 1890s, the global automobile industry of 2006 has come a long way emerging as market leader in manufacturing activity, providing employment to one in seven people, either directly or indirectly. Hailed as the ‘industry of industries’ by the Management Specialist, Peter Drucker, the automobile industry (US) set standards in manufacturing activity by contributing mass production techniques during early 1910s. The Japanese soon followed by offering lean production techniques in the 1970s. Riding high on economical revival in many developing countries in Asia and Europe, the industry’s global output touched 64.6 million vehicles in 2005. But with a downward slide in market share, the Big Three was fast losing their dominant position to Toyota, Honda, and Nissan, thereby setting the ground for the emergence of New Six. Meanwhile UK, served as the single largest customer for European auto-makers. Japanese players were the leaders in the light vehicle market and hybrid market. China and India attracted the attention of global auto-makers, vying for setting up a cost-effective export base for meeting the demand from Asian markets. Despite government controls, Chinese market boasted of sales of more than 2.7 million commercial vehicles in 2004. With reports of highest growth in mobility in the world at...
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...about the analysis of the environment of automobile industry and the marketing strategy for Ford Motor Company. It initiates with examining of external environment of automobile industry by using PEST analysis and Porter's five forces analysis. After the internal analyses that focus on the resource audit on brand, products, markets, technology, people and son on, the value chain analysis of the company will be conduct. Then the generic competitive strategies would be discussed through SWOT analysis, Ansoff Matrix and BCG Matrix in order to identify the general business strategy taken by the Ford Company. After specifying the company strategy by those analysis tools, the strategic evaluations would be drawn together with the strategy control methods. Finally, a suggested recommendation for the company future development will be mentioned at the end of the report. I. INTRODUCTION 1.1 Aim of The Report This report aim to identify the external environmental of the global automobile industry, measure and evaluate viable and sustainable marketing strategies using by the Ford Motor Company. Through appropriate theoretical concepts and models, together with appropriate methodologies, the organization within its contextual setting will be carefully examined, and justify recommendation will be mentioned. Though the report, how a successful corporation is operated and how its business strategy is implemented and controlled will be understood. 1.2 Company Background Ford Motor Company is...
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...FCjhANALYZING CHINA’S AUTOMOBILE INDUSTRY COMPETITIVENESS THROUGH PORTER’S DIAMOND MODEL DI WU Bachelor of Management, University of Lethbridge, 2004 A Research Project Submitted to the School of Graduate Studies of the University of Lethbridge in Partial Fulfillment of the Requirements for the Degree MASTER OF SCIENCE IN MANAGEMENT Faculty of Management University of Lethbridge LETHBRIDGE, ALBERTA, CANADA © Di Wu, 2006 (Approval/ Signature page) ii Abstract This paper incorporates Porter’s diamond model to analyze China’s automobile industry. Besides looking at the four determinants of competitiveness in the original model, this study specifically examines the impact of government on industry competitiveness. This study retrieves archival data on multi-measurements used in prior studies. The author incorporates one case study of a Chinese auto firm to illustrate the specific impact of government policy and the responses of auto assemblers and component suppliers. Interviews with experts in auto-related industries are conducted to triangulate the findings. Results show that the Chinese auto industry is still in its early stages of development, whereas product quality and economies of scale of domestic automakers are approaching global standards; thus Chinese auto firms aim at becoming major players in the international market. The government plays an active role in assisting the industry development as the nation transitions from a planned economy to a free...
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...SPC MOTORS PROPOSSAL TO SET UP A PLANT IN NEW ZEALAND New Zealand has an open economy that places few barriers in the way of Foreign Service providers or importers. But our exporters often encounter barriers overseas, which is why New Zealand pursues an active trade agenda. To advance and safeguard New Zealand’s interests, we need to establish and maintain our exporters’ access to markets that matter. Since 2000, trade agreements have proliferated worldwide. As our global competitors develop new networks of trade agreements, we need to match their progress or risk our exporters being disadvantaged. Free trade does not just benefit our exporters. New Zealand importers and consumers enjoy wider and cheaper access to many countries’ goods and services. The idea of introducing a new truck to the region that is more eco-friendly is in the best interest for us and them. Since the earthquake in 2012 many of the buildings and even vehicles were damaged and are in need of replacement. Right now introducing a truck to the area would most likely give us an advantage over the other car manufactures that are selling in the area. The pursuit of trade agreements complements New Zealand's participation in multilateral and regional fora such as: • The World Trade Organization (WTO) • Asia Pacific Economic Cooperation (APEC) • Industry: Automotive Manufacturing Median Salary by Years’ Experience Current state of the labor market: Strong The overall state of the labor market remains strong...
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...PART I IT in the Organization 1. Information Technology in the Digital Economy 2. Information Technologies: Concepts and Management 3. Strategic Information Systems for Competitive Advantage CHAPTER Strategic Information Systems for Competitive Advantage Rosenbluth International: Competing in the Digital Economy 3.1 Strategic Advantage and Information Technology 3.2 Porter’s Competitive Forces Model and Strategies 3.3 Porter’s Value Chain Model 3.4 Interorganizational Strategic Information Systems 3.5 A Framework for Global Competition 3.6 Strategic Information Systems: Examples and Analysis 3.7 Implementing and Sustaining SIS Minicases: (1) Cisco Systems/ (2) Aeronautica Civil 89 LEARNING OBJECTIVES 3 After studying this chapter, you will be able to: Describe strategic information systems (SISs) and explain their advantages. Describe Porter’s competitive forces model and how information technology helps companies improve their competitive positions. Describe 12 strategies companies can use to achieve competitive advantage in their industry. Describe Porter’s value chain model and its relationship to information technology. Describe how linking information systems across organizations helps companies achieve competitive advantage. Describe global competition and global business drivers. Describe representative SISs and the advantage they provide to organizations. Discuss the challenges associated with sustaining competitive advantage. ROSENBLUTH INTERNATIONAL: COMPETING...
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...BSM 3614 Strategy Trimester 2, 2015/2016 BSM 3614 Strategy Trimester 2, 2015/2016 The Strategy Formulation Framework Automobile Industry Volkswagen Lecturer : Mdm Jayanty A/p Kuppusamy Prepared by: Students’ Name | Students’ ID | Boong Lek Yang | 1112702060 | Cheryl Sim Qiao Ping | 1112700828 | Gog Yi Jun | 1112700309 | Pong Fwu Yi | 1121115503 | Yau Shye Hui | 1112702505 | Table of Content Description | Page number | Executive Summary | 4 | List of Tables | 5 | List of Figures | 5 | I Introduction | | II Methodology: The Strategy Formulation Framework | | III Company Background | | The Internal Environment 1. Resources2. Capabilities3. Core Competencies | | The External Environment1. Demographic2. Economic3. Political/Legal4. Sociocultural5. Technological6. Global7. Physical8. Industry | | Porter Five Forces Model1.Threat of New Entrants/Barriers to Entry2.Bargaining Power of Suppliers3.Bargaining Power of Buyers4.Product Substitutes5.Intensity of Rivalry Among Competitors | | IV Analysis 1: The Input Stage 1. Internal Factor Evaluation (IFE) Matrix 2. External Factor Evaluation (EFE) Matrix 3. Competitor Profile Matrix (CPM) | | V Analysis II: The Matching Stage1. SWOT matrix 2. SPACE matrix 3. BCG matrix 4. I/E matrix 5. Grand Strategy Matrix | | VI Analysis III: The Decision Stage 1. QSPM Matrix | | VII Strategy Recommendation | | References | | Appendices | | ...
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...2011 Company Valuation Report 1|Page Table of Contents 1. EXECUTIVE SUMMARY ........................................................................................................ 5 2. INTRODUCTION TO TRANSURBAN GROUP ................................................................... 9 2.1 Overview ................................................................................................................................ 9 2.2 History .................................................................................................................................. 10 2.3 Share Price Performance ...................................................................................................... 12 2.4 Products and Services ........................................................................................................... 14 2.5 Toll Roads ............................................................................................................................ 15 2.5.1 CityLink ......................................................................................................................... 15 2.5.2 M2 Hills ......................................................................................................................... 15 2.5.3 Lane Cove Tunnel .......................................................................................................... 15 2.5.4 M1 Eastern Distributor ...........................................................
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