Ford

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Today, customer’s needs are changing rapidly. In the automotive industry, where consumer’s need was fairly static, is facing a challenge to cope with changing needs. Ford must have its customization options in order to stay competitive. Their standardization strategy is giving them a competitive advantage this may require a strategic shift so as to maintain their competitive advantage.

Changing strategy caused a lot of havoc in the form of laying of thousands of employees and shutting down various plants. Creating synergies amongst various SBUs by sharing information and resources needs to be intensified which may change their organizational structure further but will help them reduce costs and maintain their competitive advantage.

Ford’s success in their standardization strategy can also be attributed to their aforementioned mergers. It has enhanced Ford’s brand image. Ford must also look for mergers while entering the emerging Asian markets so as to gain more swift acceptance, and in turn more market share. This would also help them save costs while being catapulted to the front as the market leader. Ford must concentrate on how to enter the unserved Asian markets, as they will have the first movers advantage resulting in easy penetration and more profitability. The Asia Pacific and Middle East Asian markets are the emerging economies which Ford can potentially enter with new venture with local players, before their competitors do the same.

Ford’s globalization strategy will bring in many challenges like creating a viable, clear and successful business strategy. They must also try to create the same synergies between SBUs as in USA and Europe. This will be challenge as now they will operate in new cultures with new customer preferences and business norms. Her the middle and lower level management play a vital role as they will execute and implement the aforementioned standardization strategies. Plans must be properly communicated to the whole organization to make sure that everyone is on the same page before the execution phase begins.

The way forward may be the most important decision for Ford, as described above there are numerous interrelated factors and with the changing market dynamics, Ford will have to make certain strategic decisions concerning their future business strategy and their way forward. They would have to make strategic choices on their global business strategy which they will follow, standardized adaptation is one way to go about it but this decision is critical and will decide their future as market leader.

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