The paper "Ford Motor Strategy Management in Australia" is a good example of a management case study. The External analysis of the Ford Motor Company focuses on key points of any companies which want to get a grip of a market and gain competitive advantage. For Ford Company it concerns how it can use its strengths and minimize its weaknesses in the Middle East automobile industry. 4.1 Opportunities According to Koenig Ford now has a positive approach towards “ green” automobiles. Cars which are fuel wasteful and emit large amounts of CO2 strongly pollute the air and affect the atmosphere.
Customers are responsive to this negative effect and are now preferring “ green” automobiles which emit little CO2, and are fuel-resourceful. Ford can be easily accepted in Australia because of its ECOnetic initiative. This initiative aims to produce extremely fuel-efficient engines by enhancing current engines and new hybrid engines. The initiative has led to the production of the Ford Fiesta, which is presently the car emitting CO2 in the air. Result of this initiative has also led to the manufacture of Ford Focus ECOnetic with better fuel utilization than Toyota Prius.
Ford Focus ECOnetic and Ford Fiesta with flexible hybrid engines will be a good business because of the rising cost of the fuel even in Australia. With the rise in traffic jams in the `Australian cities, individuals are moving towards small automobiles, which Ford Motors now makes gives the company a greater opportunity to market. According to the company’ s website, Ford Australia has an opportunity in producing electric vehicles both small and commercial. The market is moving towards more fuel-efficient and environmentally friendly cars and the electric car is currently the best project.
Therefore, electric cars have become attractive to markets which try to mitigate the pollution. According to IBISWorld today, Australia has adopted a pollution tax which imposes some tax on any person polluting beyond the recommended level. Maintaining electric vehicles is easier because it uses no fuel and also as its moves battery charges itself. It’ s even better than hybrid which partly produces emission into the atmosphere. Ford and Toyota Motors Companies signed a contract to share a patent that allowed Ford Motors to access hybrid technology which was a property of Toyota.
Ford also permitted Toyota to use some of its patents. The success of this agreement was marked by the launch of the Ford Escape Hybrid in 2004. This vehicle became the first SUV made in hybrid electric form and the third hybrid electric vehicle in the market. Technology adoption by Ford, particularly in robotics presents a great opportunity for recurring pinpoint accurateness and faster delivery in the market. The company has also adopted technology in the major department including supply, research, production and marketing.
This provides a platform for which the company can link up with key suppliers and customers. It also provides a competitive advantage to the company. Technology advancement has enabled Ford Australia to improve its research and development so as to improve the corporation’ s products to meet global standards. 4.2 Threats According to IBISWorld some market analyst’ s projects that future fuel cost could drop owing to the establishment of shale gas. This would have a negative impact on Ford since it focuses on flexible fuel and fuel-efficient hybrid cars which are not attractive when the fuel cost is low.
In 2013 Jurevicius affirmed that Ford currently is facing stiff competition in Australia with other established companies like the Toyota, GM Holden and Nissan. Intense competition is also in small cars segment with the hybrid engines.