Current Strategy
Above all, Ford maintains the values of innovation and ingenuity. Since its inception, the organization has a portfolio of more than 38,000 patents, which creates a competitive advantage in the market through technological developments (Lazdowski 5). As a result, the company differentiates its product line and constantly develops it using a market-oriented pricing strategy. First, Ford positions itself in several segments at once, from economy class to premium, in connection with which it selects appropriate compensation for cars in various markets. Secondly, one of Ford’s goals is to improve the world around, along with the freedom of movement of each person (Ford Corporate Home). At the same time, the current focus is on the creation of electric vehicles and hybrid vehicles, which corresponds to the technological focus of Ford Motor (Ford Corporate Home). The marketing strategy differs from the distribution region; however, the general trends of innovation and the availability of a wide range of vehicles can be seen in each.
Given the diversification of products and pricing, a similar ranking is observed in promotion and distribution channels. Ford cooperates as a sponsor with major sporting events, such as the UEFA Champions League in Europe, and distributes advertising through television, social networks, and contextual advertising. New technological developments and the adaptation of trade-in programs, discounts, personalized offers, and much more (Lazdowski 7) have become an informational occasion for advertising. Distribution and manufacturing locations also play an essential role in Ford’s marketing strategy. A diversified premium product line and advanced electric vehicle developments are provided primarily in developed countries, where the company’s infrastructure has already been created and debugged, significantly simplifying the implementation of long-term plans. In developing countries, centers responsible for producing and selling middle-class cars, which account for the largest share of Ford Motor’s turnover, are unfolding (Lazdowski 11). Consequently, the organization retains an integrated approach not only in operating activities but also in marketing strategy.
Comparative Analysis
A significant share of the changes in modern trends in the automotive market has been made by the pandemic. Companies’ marketing strategies have changed accordingly. Firstly, the share of digital technologies and remote interaction has increased significantly when people cannot visit car dealerships. Automotive companies have increasingly focused on advertising channels in streaming services, social networks, and contextual advertising on the Internet, where they began to offer various marketing touchpoint services: online consultations, video or 3D car viewing, and recommender systems (Treanor). Secondly, after the restrictions, customers are in no hurry to return to dealerships but prefer to plan their own time and get the same approach online (Treanor). In a similar way, the internal structure of auto companies is also being transformed.
If earlier, many departments were largely isolated and worked separately due to the complexity of these processes; now this approach is harmful from the point of view of competitiveness. Subaru, for example, coordinated communication between marketing departments, test drive data, email newsletters, and sales data and, as a result, received a database of customers who were able to offer unique offers that took into account many of their individual factors (Treanor). Such smooth interaction within departments should be ensured at the level with the buyer; accordingly, the winners will be companies that invest and invest in the development of the R&D department or attract outsourcing technologies. A prime example is Tesla, which focuses solely on technological innovation and memorable customer interactions without the need for significant marketing investments. Ford will almost certainly be at the forefront of these trends, as it has the ability to maintain online recommendation and consultation systems for selecting vehicles while maintaining specific pricing. As a result, the marketing strategies of auto companies in the US market will focus on technology, innovation, unique ways to interact with customers, and the environmental responsibility of switching to electric cars.
Proposal
In order to maintain a competitive advantage, Ford must adapt to new conditions, increase its pace of development, and respond to the current trends identified in the chapter above while still building on the values that have shaped the company’s image over the years. New challenges are focused, in general, on global problems that will affect, to varying degrees, all industry representatives. As mentioned above, the transformation of interaction processes in this business due to the pandemic creates the conditions for several critical areas of development in each organization’s infrastructure. First, Ford could improve the current potential vehicle trim page by adding online consultations, 3D or video previews of the interior and exterior, test-drive locations, and more. At the moment, many of these functions are missing or not concentrated in a single place. Such fragmentation must be eliminated for the purpose of compactness and clarity of the site as one of the channels of interaction between a potential client and the sales department, which can later become the main one.
Sustainable competitive advantage is also achieved through reputational activities. Ford now meets the requirements of social and environmental responsibility (Ford Corporate Home). At the same time, the environmental one will be the key to sustainable development issues in the future since green policies are already being chosen at the state and international levels and regulated by law (Aldieri et al. 762). Ford has almost wholly switched the entire lineup exclusively to hybrid and electric models, and the direction in this regard should continue. In the medium term, the company can transform plants accordingly, reducing carbon emissions and consumption of non-renewable energy sources. The result will be a green energy transition policy, a plan that needs to be approved shortly but whose goals will be achieved much more than in 5 years.
Finally, the horizontal expansion of Ford’s business will continue into some developing countries, facilitating increased international expertise and global integration. This trend is necessary due to the presence of many crisis challenges that companies can overcome only with the help of states or close cooperation in the markets of developed countries. At the moment, technological transformation in the field of remote interaction and the environmental agenda is the process of global integration of Ford since external factors primarily dictate this activity. Companies that have achieved pre-pandemic profits demonstrate their ability to adapt and competitive offers in the new environment, which, after a protracted crisis, has given rise to a significantly increased demand for personal vehicles from customers (Treanor). To take on competitors like Tesla, Ford must increase its focus on positioning affordable vehicles and offering low-cost technology solutions. In conclusion, it can be said that Ford has taken a generally promising niche within the new environment of this business, primarily due to the emphasis on innovation, which has been built into the company’s value base since its founding and which will help to coexist with new players like Tesla. , or with other large corporations like General Motors.
Works Cited
Aldieri, Luigi, et al. “Is green innovation an opportunity or a threat to employment? An empirical analysis of three main industrialized areas: The USA, Japan and Europe.” Journal of Cleaner Production, vol. 214, 2019: pp. 758-766. Web.
Ford Corporate Home. Web.
Lazdowski, Yvette J. “The Inception of the Ford Motor Company.” Persistence and Vigilance: A View of Ford Motor Company’s Accounting over its First Fifty Years. Vol. 24. Emerald Publishing Limited, 2020: pp. 5-13. Web.
Treanor, Tom. “Why Automotive Marketing Is Changing and How to Meet the Demand”. Forbes, Web.
