Disruption in Detroit: Ford, Silicon Valley, and Beyond (A) Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

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

Concept of Disruption:

The concept of disruption or disruptive technology is related to bringing different value proposition to the market, which results in the underperformance of established products in the market. There are a number of players in the automotive industry who have greatly influenced the industrial dynamics by disruption, which mainly includes: powertrain, software, autonomous vehicles, car ownership and its use, and small car challenges. The trends that drove the disruption change in the industry tends to be associated with the environmental issues,such as: air quality, change in consumer perception about car ownership and growth of middle-class segment around the world. Thus, the concept of disruption as described by Mark Fields was ‘one foot in today and one foot in tomorrow’.

Limitations:

The approach of Fields to think, act, and disrupt like a startup firm was key limitation of the business model. Although this has represented the sense of urgency to bring a change in the business operations and to divert the focus on the deep areas the organization has expertise in. As compared to the startups; the new entrants in the market tend to offer products at relatively lower prices than Ford and have the time to seek out new markets in order to determine the target population. However, this is not possible in case of Ford, because Ford has been operating in the automotive industry for more than a decade and is not new to the market.

Understanding of competitive landscape:

The competition has been increasing with time,from both traditional and non-traditional sources. The approach to bring reduction in the unnecessary weight of the truckand significant improvement in the truck mileage by around 30 percent, has been endorsed by the potential consumer base and has demonstrated strong demands. The self-driving cars have been tested by Uber by involving the use of Ford Fusion,enabling the organization to focus on its autonomous driving as well, because this is expected to increase the global reach of Ford once again due to the global operations of Uber’s car sharing ownership services.

Right Approach:

The approach of Mark Fields is somewhat appropriate with the issues being faced by the organization. This is primarily based on investing the autonomous driving, focusing on the improvement of the truck features as they have represented higher consumer demands. But, the approach to think like a startup organization does not match with the standard and reputation of the organization. This is mainly due to the reason that Ford is ranked among the leading automakers around the world. Thus, there is a need to think like a leader and come up with the strategic approaches that would allow it gain a competitive edge and remain competitive in the market through maintaining a strong foothold in the automotive industry.

Reinvention/Recommendation:

The reinvention process of the organization is recommended to be based on three factors: tracking the factors on which the competition is based in the industry, renewal of the existing capabilities and nurturing a supply of talent. (Breene, 2011)Therefore, based on the organizational and industry analysis; Ford is recommended to increase its focus on autonomous driving in association with Uber. This is due to the reason that around 70 percent of the users have significantly favored the use of fully-automated driving. (McKinsey, 2018)Therefore, there isn’t a requirement to bring complete change in the organizational business model, but it is required to bring an improvement in the ongoing processes of the organization, which have been operated by the organization in recent times.

Conclusion:

The competition in the automotive industry was estimated by Ford under the leadership of Mark Fields. However, the organization has successfully operated during the recession period and returned tohaving profitable growth. But, due to the usage of advanced technological approaches and an increased number of new entrants in the market; the organization is recommended to increase its focus on its truck product line, which has great market growth probability in the United States as compared to the small cars market growth in Asia and Europe. Similarly, there is a need to think like a leader and come up with strategic approaches, which would allow the company to be gain a competitive edge in order to remain competitive in the market............................

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