Ford Motor Company, commonly known as Ford, is a US-based multinational automobile designing and manufacturing company. The company was found in 1903 by Henry Ford (Ford, 2017). The company operates the Ford and Lincoln brands. It also has minority stakes in various other foreign companies. Ford is the second-largest automobile manufacturer in the United States, after General Motors and the fifth-largest in the world. The company is known for its pioneering assembly line that introduced mass manufacturing and management of a large-scale workforce. In 2018, the company produced more than six million automobiles across its various production units in the US and outside of the US. The revenue it generated in the same year was $160.33 billion and had more than 199,000 employees (Ford, 2019). The company has faced various financial crises and has managed to survive.
Following are the four dimensions of the Ansoff Matrix for Ford Motor Company:
Market Penetration
This strategy requires a company to promote its existing products in its existing markets. Ford uses various strategies in this regard. The first strategy the company uses is to aggressively promote the products the company has. Their features, designs, and innovative aspects are highlighted through various marketing channels. The company uses social media, television, and print media to promote its products. This creates awareness in the markets and motivates people to purchase Ford vehicles. Another strategy the company uses is to target current users and motivate them to try other models of the company offering different functions. The company works to increase its market share in the US and other nations. The company has strategic alliances with various other companies in Europe and Asia to launch its vehicles. This is important in nations that do not have Ford production units. The company also offers installments and other payment plans to motivate consumers to purchase Ford vehicles. All of these efforts work to increase sales.
Market Development
When existing products are introduced in new markets, market development takes place. The first strategy that the company uses is to geographically expand into new markets. This is done through joint ventures or direct foreign investment by establishing production units. This allows the company to launch its existing vehicle models in these new markets. The models are selected based on consumer needs in those markets. The company also promotes its products in these new markets through various discounts and installment payment plans. The colors offered also match consumer needs in the new markets. The company also works on launching new models that target new market segments in its existing markets. The new models aim at certain market segments the company did not target earlier.
Product Development
Product development is the promotion of new products in existing markets. The first strategy that Ford uses in this regard is to launch new models of its vehicles every year. The new models offer various new innovative functions and options for consumers. The product shapes also varies each year. Another strategy Ford uses is to launch new vehicle variants that are completely different from the models the company is already offering. These variants differ in shape, capacity, and other functions. Each variant is launched to target certain market segments by meeting the consumer needs of the segment. The new products are launched through extensive research and development that passes through various steps in product development that help ensure the product quality and standards are met. Any new products are marketed through various channels sometimes before they are launched into the market. Each new product developed by the company is an important source to increase sales and revenue.
Diversification
When new products are launched into new markets, diversification takes place. This is a risky strategy. Ford has diversified into the electric vehicle market by launching electric and hybrid vehicles. The company can also vertically diversify by manufacturing the spares on its own which it currently procures through suppliers. It can forward diversify by establishing its sales outlets across the US and in other nations. Ford also has room for unrelated diversification into other industries such as consumer electronics, heavy machinery, entertainment, hospitality, and so on. All of these diversification strategies can help the company grow and become a conglomerate.
References
Ford, 2017. FORD PIQUETTE AVENUE PLANT. [Online] Available at: https://web.archive.org/web/20170222032217/http://www.nps.gov/nhl/find/statelists/mi/FordPiquette.pdf [Accessed 08 Jan. 2020].
Ford, 2019. Annual Report 2018. [Online] Available at: https://s22.q4cdn.com/857684434/files/doc_financials/2018/4Q/Ford-2018-10-K-Report.pdf [Accessed 08 Jan. 2020].