Disruption in Detroit: Ford, Silicon Valley, and Beyond (A) Harvard Case Solution & Analysis

Disruption in Detroit: Ford, Silicon Valley, and Beyond (A) Case Study Solution

Since one of the noticeable strength of company is its strong presence and position in the automobile market, it can also leverage its brand recognition and market presence in the new segments in order to explore the global automotive opportunity in terms of increased production volume, also, the company can use its strength of strong R&D to innovate its product and to beat head-to-head competition. Also, the company has not been targeting emerging market, it can target emerging market as a part of an expansion opportunity. The company has not catered customers in emerging market, which tends to limit the expansion opportunity of the company, thus enhancing the threat of losing market share from untapped market arena.

The VRIO analysis of Ford Company indicates the core competencies of company such as customer loyalty, brand image, R&D investment, technological capabilities and strong supply chain, which are valuable, rare, difficult to imitate and exploit, providing competitive advantage to company, whereas the global presence and skilled HR are valuable and exploited but are not rare and difficult to imitate, providing temporary advantage.

Ford, notably, has achieved profitable consistent growth based on the smart management and leadership, it has gained higher customer trust and strong brand image, and consistently focusing on the operational efficiency. The company has been striking a balance between customization and standardization in the international markets. Also, the company has adapted the cost leadership strategy where the company seeks to manufacture the exceptional quality care at mainstream price points. Also, the supply chain management is another core element of business strategy. Additionally, the company always seeks to explore the strategic alliance to strengthen competitiveness, win global product portfolio, extent capabilities and better serve customers. Ford is committed to improving the business operations as well as leveraging the adaptive business models which includes to work with partners in order to improve efficiency and effectiveness (Ford, 2018). Yes, for sure, it fits with the above analysis because the company always strives to explore market opportunities through customization and standardization, cost leadership strategy and cost leadership strategy.

One of the significant core issue with Ford is the production capacity that has been outstripping the demand in the United States. It is recommended that the company should reduce the supplier bottleneck i.e. improve communication & interaction with supplier in order to prevent the falling short on components and replace order earlier. It should increase assembly line speed and initiate round-the-clock-production in numerous plants for rolling out more automobiles per hour. Amongst 7cs, the most significant implementation factors include strategy, system, skills and style which would help the company to facilitate change and implement the strategy.

Questions for class discussion?

1. How should Ford Motors plan to adapt risk extinction or disruptive innovation?
2. What should be the core focus areas for the company?.........

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