Competitive Environment Strategies Assignment Help

Competitive Environment for Ford Motors: The automobile industry is noted for its intense rivalry and within the United States market Ford Motors faces five major competitors: GM, Toyota, Chrysler, Honda, and Nissan. Toyota, Honda, and Nissan have grown their market share largely due to their ability to deliver better products at lower prices, more fuel efficient and smaller vehicles.


These companies are able to earn a huge profit due to lower labor costs and greater efficiency. To compete with competitors, Ford also differentiated itself by focusing on more profitable SUVs and truck lines, but this strategy is not feasible due to changing demand. As per analysis by the assignment help experts, Toyota Motor Corporation is the big competitor of Ford Motors. There is a big difference between Toyota and Ford in terms of market capital and revenue. In 2010, Ford has market capital of $34.92Billion, whereas Toyota has $255.72Billion market capital. Along with this, Ford has revenue of $133.36Billion and Toyota has $262.88Billion  Comparison between Ford and Toyota There are following strategies that are different in each company such as:


HR strategy: In initial time, Ford introduced the concepts of assembly lines, mass production, and the technical division of labor within companies and production units. On the other hand, Toyota follows the Japanese traditions of uniforms, equal treatment of all workers; hire the right people on right place, offers good salary structures and benefits. In present, Ford is trying to make its HR policy more participative and focused on improving workforce skills and abilities.


Sales promotion strategy: Toyota and Ford use the same strategy for advertising and promoting their products such as discounts, financing, low-interest rates, easy installment plans and internet. The discount packages of Toyota and the rebate programs of Ford are very attractive to the clients.


Quality control: Toyota is the king in quality control in automobile industry. Its quality is the competitive advantage for the firm. Toyota faced a decline in quality in the last couple of years, because the company has grown too large to maintain standards. Ford’s products are reliable, but not performing well. At the same time, Ford Fusion is most reliable as compared to Toyota Camry. In present, Ford beats Toyota for quality control. Toyota has enough resources, good brand image, better quality and technology. Along with this, it follows effective strategies in management and production. So, Toyota is to be successful in the long term. For quality issues, company takes immediate actions and incentives for customers.


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