Henry Ford founded the Ford Motor Company in 1903 after years of experimentation with

automobiles and businesses. Henry Ford created the Model A, a two-cylinder, eight-
horsepower automobile, within the same month of launching the firm (Gelderman, 2016).
Insufficient production capability meant that just a few automobiles were produced each
day. It took Ford four years and a lot of hard work to create the Model T, a dependable and
energetic automobile that could be afforded by people of all economic backgrounds. It
INTRODUCTION made its premiere in October of 1908.

According to a survey by IBIS, the global car and automobile manufacturing business is
expected to be worth $2.9 trillion in 2022. Over the five years leading up to 2022, the
worldwide car production sector reaped the benefits of record low financing rates and
strong number of buyers. Despite this, industrial revenues and worldwide trade have been
badly impacted by the COVID-19 (coronavirus) pandemic halfway through the
implementation of business and social limitations by governments all over the world.
Consumer confidence and per capita disposable income rose even as worldwide sales fell
MODAL A by about 10% in 2020. Despite this, sales began to rebound in 2021. Over the next five
years, the industry's sales is projected to drop an average 0.6% to $2.9 trillion, with a 3.1%
rise in 2022 specifically.

In a U.S News Report in April 2022 titled “Ford Loses $3.1 Billion, Hit by Investment and
Chip Shortage”,which was due to its investments in an electric-vehicle company, and its
income decreased as a scarcity of semiconductors reduced the delivery of trucks and SUVs
in North America
MODAL T
 Emerging markets, rapid technological advancement, environmental policies, and evolving
customer demands are all contributing to a drastic shift in the auto sector today. The
automobile industry will be no exception to other industries that have been transformed by
digitalization, automation, and innovative business models. Different mobility, automated
vehicles, electrification, and connection are some of the four transformative innovation
INTRODUCTION developments in the automotive market. (McKinsey 2016)

The automobile sector is ready for upheaval, according to most industry leaders and analysts,
who expect these four trends to strengthen and exacerbate one another.

Competitors of Ford Motor Company in the consumers disposable sector include the following:
General Motors Co. (GM), Toyota Motor Co. (TM), Daimler (DDAIF), Honda Motor Co. (SPAR).

Emphatically, Ford is currentl y faced with

1. Decline in earnings and restructuring costs: A significant $11 billion
restructuring plan was launched by Ford in 2018, which shifted the
company's focus to trucks and SUVs. and affects the company revenue.

2. Decline in sales has been another challenge affecting Ford’s revenue.

Three of Ford’s product emerges
as best-selling cars in the UK in 2019
 Ford Motor reported a $3.1 billion loss from January to March as a result of the fall in
Rivian's share value (Rivian is an electric-vehile startup Ford’s invested in). Ford's
revenues declined as a result of a shortage of computer processors.

It is important to note that Ford's pre-tax earnings was reduced from $3.9 billion a
JUSTIFICATION year ago to $2.3 billion, even after accounting for the decline in its shares in Rivian
Corporation. It made $3.3 billion in profit in the first 3 months of 2021.

Compared to the same period a year earlier, Ford's first-quarter revenue was down to
$34.5 billion from $36.2 billion. The company sold 966,000 cars in the first quarter,
down from 1.1 million the year before. For Ford and other automakers, raising the
cost of new vehicles has helped to alleviate the negative consequences of decreased
sales.

With our proposition, Ford can become well positioned to capture a significant part
of the automotive industry especially with its investment in electric-enabled vechiles.

Ford's SWOT analysis focuses on its inventive pace, value chain, and competitiveness
from established enterprises and newcomers. Ford must enhance its R & D efforts
and innovative efficiency to compete with rising competitors. Ford must extend its
supply chain to improve productivity gains, which could also cut costs and prices to
make its cars increasingly marketable.
 While Ford used to specialize in building automobiles for distinct regions and markets, the "One Ford" business
model is now being used in able to market the very same models all over the world. Numerous benefits are
being considered by the management of the company at this stage.

Ford is attempting to "become more efficient and more innovative" by minimising the amount of companies and
reducing the amount of vehicle platforms around which numerous models are constructed, according to
JUSTIFICATION Alhalabi, Ali, and George (2016). (p. 42). By unifying its global business and cutting the number of brands and
vehicle platforms that Ford now owns, Ford's current strategy is meant to improve existing operations.

Business Model Navigator gives an impartial account of Ford's activities. It emphasizes three business model
elements:

1. Ford controls all production, marketing, and sales stages to ensure quality. Ford's strong supply chain
partnerships help streamline manufacturing and develop new products.

2. Ford licenses its trademark and logo for aftermarket items, dealerships, toys, and video games. This boosts
brand awareness and revenue.

3. Ford offers no-frills models to appeal to the most people. Some car buyers may find the low price and lack of
amenities and enhancements appealing.

Osterwalder and Pigneur (2010) split a company model into nine interdependent systems: value proposition,
customer relationships, customer segmentation, channels, key resources, key activities, key partners, cost
structure, and revenue structure. Ford's cooperation with Google suggests they desire a fresh solution to develop
a unique and better-known vehicle. Ford's partnership with Google paves the way to potential customers
worldwide.
C.I.P.S

SOLUTION 1:

When it comes to the international automobile industry, Ford must adopt

practices and policies that correspond to the most critical external influences.
Analysis of Ford Motor Company using the Five Forces model provides
management policymakers with information on the most significant external
forces and their impact on the company.

SOLUTION 2:

At the same time that the global economy was beginning to recover from the
COVID-19 epidemic in the year 2020, the Ford Motor Company presented a
fresh strategy to resuscitate the business. The development of new battery-
powered automobiles, trucks, and vans is a primary focus of the strategic plan,
which aims to make the company's product lineup more environmentally
friendly. hence, If the company increases commitment to this plan, t will solve
its problem
C.I.P.S

SOLUTION 3:

Ford should devote more resources to advertising that produce money at the
same rate as the automotive market. Social media advertising seems to have
become the dominant medium for reaching a larger and more diverse
audience. Even if the organization utilizes the dominant social media platform,
other modes of communication, such as blogging, can be expanded to reach a
larger market audience. Ford may pick a blogger with a large following and pay
them to promote their product through the platform, due to the fact that
consumers are growing increasingly dedicated to influencers.

SOLUTION 4:

The firm should revist its innovation strategy named “The Plan” launched in
2021 that should pay attention to includes structural, innovative, continuous,
and competitive changes to establish and maintain a competitive edge.
RECOMMENDATION

RECOMMENDATION 1:

The result of Ford's SWOT analysis is that the automaker has survived for
almost a century, ranking it among the industry's pioneers. To maintain
business expansion and maximize profits, Ford must battle competitive
pressure and the entry of high-tech businesses by increasing its R&D spending
and innovative velocity.

RECOMMENDATION 2:

Ford has space for change and progress, according to PESTEL/PESTLE. Ford can
boost innovation process due to climate change, hybrid and electrical
automobile market, as well as other factors. This remote/macro-environment
offers Ford expansion opportunities, especially in developing regions. Ford
must plan to expand globally.
RECOMMENDATION

RECOMMENDATION 3:

Ford should enhance digitalization based on their business module in order to take full
advantage of the improvements and opportunities associated with digital technology and
the impact on society. Digitalization involves a structured and expedited transitions of
company's activities, mechanisms, expertise, and product lines to increase revenue.
 Alhalabi, A, Ali, M & George, S 2016, ‘The American auto-market leaders in comparison: a
study of strategies and business models of Ford Motor Company and General Motors
Company’, vol. 5, no. 5, pp. 36-47.
REFERENCES Gao, V.P., Hans-Werner, K., Mohr, D. and Wee, D. (2016). Automotive revolution - perspective
towards 2030 How the convergence of disruptive technology-driven trends could transform
the auto industry. [online] Available at:
https://www.mckinsey.com/~/media/McKinsey/Industries/Automotive%20and
%20Assembly/Our%20Insights/Disruptive%20trends%20that%20will%20transform%20the
%20auto%20industry/Auto%202030%20report%20Jan%202016.pdf.

Gelderman C. W. (2016) Henry Ford: American Industrialist. Britannica.com. Retrieved from

http://www.britannica.com/biography/Henry-Ford#_comments

Osterwalder, A. and Pigneur, Y. (2010). Business Model Generation: A Handbook for

Visionaries, Game Changers, and Challengers. [online] Google Books. John Wiley & Sons.
Available at: https://books.google.com/books?
hl=en&lr=&id=UzuTAwAAQBAJ&oi=fnd&pg=PP1&dq=osterwalder+and+pigneur+2010+pdf&ot
s=yYGTBcG30A&sig=Kxp0Wtu83HECa0vM2JqnXMerchw [Accessed 10 Jul. 2022].
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