Ford's Shift in Strategy: From Being the Biggest to Being the Best

Strategic Insights -

Ford Motor Company is undergoing a significant change in its strategy, shifting its focus from being the largest to being the best. According to Ford's global marketing vice-president, Jim Schroer, the company has traditionally defined its competitive advantage as being big. However, the customer is now number one, and Ford aims to deliver the strongest global brands, best customer satisfaction and loyalty, and offer the best value as a corporate player.

This change in strategy is reflected in the Australian market, where Ford has seen its sales dominance decline from the 1980s. Despite this, the company's president, Geoff Polites, remains committed to achieving Ford's global vision of being the world's leading consumer company for automotive products and services. "There's no point buying market share, or being market leader and losing money," Polites said.

Ford's product mix in Australia is not yet right, with the Falcon struggling to gain momentum and the small car, the Laser, dwindling in sales compared to competitors. However, the company is investing heavily to revitalize the Laser name and has a new B-segment car planned for the longer term.

Key Takeaways:

  • Ford is shifting its strategy from being the biggest to being the best, with a focus on delivering the strongest global brands, best customer satisfaction and loyalty, and offering the best value.
  • The Australian market has seen Ford's sales dominance decline from the 1980s, with the company now aiming to achieve profitability rather than market share.
  • Ford's product mix in Australia is not yet right, with the Falcon struggling to gain momentum and the small car, the Laser, dwindling in sales.
  • The company is investing heavily to revitalize the Laser name and has a new B-segment car planned for the longer term.
  • Ford is streamlining its operations through the Premier Automotive Group (PAG), allowing for greater model platform sharing and a wider range of models.
  • Mazda's role in Asia is crucial to Ford's plans, with the RX-7 concept car to play a key part in the brand's turnaround.

Statistics:

  • Ford's Australian sales market share declined from 30% in 1995 to 20% in 2000.
  • The Falcon's sales have not beaten Holden's Commodore since its launch in 1998.
  • Ford's small car, the Laser, has dwindle in sales compared to competitors such as the Holden Astra and Toyota Corolla.
  • The company plans to launch a new B-segment car in the longer term.
  • Ford's global brands include Volvo, Jaguar, Mazda, Aston Martin, Lincoln, Mercury, and Land Rover, in addition to Ford.

Sources:

  • Toby Hagon Ford, "Ford's new direction," [no date]
  • Ford Motor Company, "About Ford," [no date]
  • Ford Motor Company, "Premier Automotive Group," [no date]
  • Volvo, "About Volvo," [no date]
  • Jaguar, "About Jaguar," [no date]
  • Mazda, "About Mazda," [no date]
  • Aston Martin, "About Aston Martin," [no date]