The Ford Motor Company Term Paper Example | Topics and Well Written Essays - 750 words - 1

The Ford Motor Company - Term Paper Example This has lead to $153 billion in revenues and a market value of $ 73 billion (Hochman 90-7). However, due to the economic crisis, the company has seen its revenues and market value slumber in the recent past (Hochman 90-7). As one of the leading automobile producers, Ford Motor Company competes in the oligopoly market (Hochman 90-7). Its main competitors include Honda, Toyota, Kia, Subaru, and many other companies. The market entry in the automobile industry is free to every interested party; however, due to huge initial capital investment requirements needed only a few firms are players in this industry. When Ford Company started with the Model T, they were enjoying the monopoly power as they were the only producers. But this has changed since many firms have also ventured into the industry (Hochman 90-7). A market-centered company is a company that identifies the needs and the wants of its customers and tailors all its businesses towards those needs and wants (Hochman 90-7). The customers have enough knowledge about the products and the market; and are willing to be persuaded. The company offers mass customization and utilizes the importance of 4 Ps in its marketing. Ford as a company had experienced both the good and bad business experience. From one of the leading automobile companies accounting for 25 percent of all cars and trucks to drop in revenue and market share to $146 and 14 percent respectively (Hochman 90-7). It may have attributed to the financial crisis that had befallen the entire motor industry hence reducing the sales. However, Ford did not explain its drop in market share or magnitude of its losses compared to the rest of the companies in the industries. Ford’s company operations were characterized by excessive costs, it had lost touch with its main customer's needs and finally, his innovation was not up to date (Hochman 90-7). After the arrival of Mulally, the company started to improve their innovativeness, reducing the costs, and axing some of the un-performing brands. Mulally was convinced that competition in all market segments was the way to go and this policy was adopted.