Abdullah-Al-Mamun Id-211002306

1) Identify the sector, industry and segments discussed in the case.
Identifying the segments of Ford: The Company operates in three segments: Automotive, Mobility and
Ford Credit.
 Automotive: The Automotive segment is engaged in developing, manufacturing, distributing,
and servicing the vehicles, parts and accessories of Ford and Lincoln vehicles.
 Mobility: The Mobility segment primarily includes the development of Ford’s autonomous
vehicles and related businesses. The Company also holds ownership is Argo AI, which is a
developer of autonomous driving systems, and Spin, which is a micro-mobility service provider.
 Ford Credit: The Ford Credit segment is comprised of the Ford Credit business on a consolidated
basis, which is primarily vehicle-related financing and leasing activities. Ford Credit offers a wide
variety of automotive financing products to and through automotive dealers throughout the
world.
Identifying the industry of Ford: In this case we can see that Ford Motor company is working with
automotive industry. They are working with different sector in this industry to allow the consumer
having a better experience of moving or purchasing their dream car.
Identifying the sector of Ford: The sectors Ford covering are

 Automobile
 Banking (car loan)
 Parts & service
2) Do an internal analysis for Ford.
Internal Analysis of Ford: The Process of Internal Analysis of Ford
Create value for customers: Time to time Ford success remains by creating and understanding value to
the customer. From this case we have some examples:
 Increasing demand for more fuel-efficient vehicles In the wake of the global recession,
consumers have never been more keenly aware of the operating cost of vehicle ownership.
Recent studies have shown that customers across the globe are willing to pay more for more
efficient vehicles that will pay back their investment over time. This increasing interest in fuel
efficiency is also reflected in a trend towards a “post-green” culture in which the obstacles to
environmentally beneficial behavior are lowering while peer pressure to be green is mounting.
 Increasing interest in safety and security: Safety and security remain a top priority, as concerns
about health and wellness remain paramount in our day-to-day lives. Consumers are eager for
products, services and experiences that provide lasting peace of mind.
 Covering all automobile sector: In this case we can see that Ford covered all the necessary
sector to cover all the needs from buying to running a car. For buying car they provide car loan
and for having a good experience they also open parts and service business.
Competitive Advantage: Leading Sources of competitive advantage for Ford Motors are:
 Technological innovation: Technological innovation is a key source of competitive advantage for

the brand since the company relies mainly on product differentiation to grow sales worldwide.
Apart from bringing a large range of fuel-efficient and safer cars to the market, the company
also brought several attractive SUVs and crossovers to the market.
 Product Range: A large and attractive product range that serves the needs and preferences of
various consumer segments worldwide is also a key source of competitive advantage for Ford
Motors.
 Global presence: Ford has maintained a strong presence in all the leading automobile markets
of the world including the US, China, and several more European and Asian markets.
3) Do an external analysis for the relevant industry.
The Five Forces Analysis Of Ford Motors: To assess the role of these forces in influencing the
automotive industry it is important to discuss major factors that affect the competition in this industry:
The bargaining power of consumers: This specific force can be discussed as having a strong impact on
the development of Ford Motor Company and other producers in the industry. The reason is that all
changes in products, operations, and technologies are oriented to attracting consumers and making
them buy automobiles. The number of buyers and their capacity influence the market and sales directly.
The bargaining power of suppliers: This power can be discussed as moderate. Although many
components that are required to produce Ford vehicles are provided only by certain suppliers, the
relationships of Ford with suppliers and vendors are regulated by contracts. As a result, companies in
the automotive industry choose to regulate relationships with suppliers strictly to avoid situations when
production processes are affected by delays in deliveries or other adverse effects.
The threat of substitutes: In this industry, substitutes include public transportation, motorcycles, and
bicycles, depending on the purpose for which vehicles are used by consumers. Still, this force can be
discussed as weak or moderate since researchers note that such substitution is not influential, and other
products and services are purchased by consumers because of factors that are not directly related to the
automotive industry
The threat of new entrants: This force is weak because new producers rarely enter the industry, and
this phenomenon is associated with high production expenses, regulations adopted in the industry, and
a range of other factors. Furthermore, much attention should be paid to the technological base required
to enter the automotive industry.
The rivalry among major competitors: The automotive industry in the United States and globally is
characterized by a high level of competition because of a low number of rivals. There are no dominating
producers in the industry, but the rivalry among competitors can be discussed as a strong force.
Shakeout: The shakeout stage is more of a “scrutiny” stage. During this stage, the competing firms may
face stronger competition, and the growth rate may decline.
Those firms who fail to give quality and innovation start losing the race. Moreover, ineffective
marketing, low-quality customer and after-sales support force many firms to retreat. Stronger firms
strengthen their position. However, this stage also brings fierce competition and price reductions. the
shakeout stage is:
 Growing competition
 Price reductions
 Product development and innovation
Strategic Model of Automobile Industry
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1) Identify the sector, industry and segments discussed in the case.

Identifying the sector of Ford: The sectors Ford covering are

2) Do an internal analysis for Ford.

Internal Analysis of Ford: The Process of Internal Analysis of Ford

 Technological innovation: Technological innovation is a key source of competitive advantage for

3) Do an external analysis for the relevant industry.

Strategic Model of Automobile Industry

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