Ford Motor Company

Introduction

Motor vehicle business had become very competitive due to the emergence of different types of vehicle which are better and cheaper. Ford faces competition from a lot of rivals, and this includes: Hyundai, Toyota, GMC and Honda. These companies do not only produce high end cars, but they also produce cheap cars, which can be afforded by many. On the other hand, a company such as Toyota is flexible, and it moves with the changes in the motor vehicle market. Ford has remained in the same position, whereby its models of vehicles and designs seem similar, and they can easily be predicted. This is a move which has resulted in the diminishing customer base of Ford vehicles.

Ford has been successful in the US, which is its largest market in the whole world. However, the company has focused more on the sales of F-series trucks, which are on high demand in the US. More improvements have been made in the truck, due to its high demand in the US, thus making the company to invest heavily in the truck (ELLEN, 2011). The company has also focused on the production of hybrid electric cars, which can be charged. Ford opted to producing environmental friendly cars due to high demand of environmental friendly cars in the market. In addition, most countries have also imposed strict laws regarding environmental pollution. China is currently dealing with the issues of environmental pollution, thus eco-friendly cars should be on high demand in the country (Emmons, 2015).

In as much as Ford is focusing on environmental friendly cars, the youths are shifting away from the company (Cameron & Quinn, 2011). Most youths have opted to buying cars from other company’s other than from Ford, the main reason behind this case is the production of cars whose designs are not unique at all. Each and every year, Ford releases new models of its high selling cars, in order to compete with its rivals. On the contrary, Ford’s new models are improvements of their previous models. The company does consequently come up with new and unique models, to compete with other cars (Hughes, 2011). According to owners of Ford vehicles, Ford’s improves the mistakes it made on the previous model, in the new model. The body shape, and the interior improvements are only meant to better than that of the previous model, thus attracting more customers.

Ford cannot beat its competitors, due to its sluggishness in changing the models of its cars. Ford’s models have always resembled each other, and it makes it easier for one to predict the future of a certain brand of a car (Emmons, 2015). This is a move which is not tolerated by the younger generation, since young people are attracted to unique and sleek cars, which seem attractive before the eye. Toyota, for instance is a company which produces cars which are very unique, in order to win over markets in different parts of the world, regardless of which motor vehicle brand is dominant in the market. This efforts have Toyota beating most dominant companies in most countries, hence becoming the most dominant motor vehicle company in the world. The only strategy which Toyota employees, is the flexibility of its models (ELLEN, 2011).

Production of fuel economy cars is significant however, the company should also focus on other strategies (Cameron & Quinn, 2011). Ford produces fuel friendly vehicles, thus saving the costs of fuel. Due to the increase in fuel prices, most people often consider purchasing cars which are fuel economy, in order to save more cash. Ford has however depended upon this strategy so much, that it has forgotten to come up with other strategies of attracting new customers (Hughes, 2011). Production of hybrid cars has seen Ford being able to attract more customers, since the company’s cars have been very cost effective, thus enabling its users to enjoy using their cars. More companies have also adopted the production of fuel economy and hybrid cars, thus making them to be more effective.

Ford has not been consistent in improving and coming up with new designs for its new models of cars. For instance, the 2007 model Mustang, is similar to 2017’s model, with few improvements on the side aerodynamics, headlamps and bumpers. The cars however look similar, and a person can easily predict the 2018’s model (ELLEN, 2011). Ford does not invest in improving the design of its cars, making them to maintain the old look, with a few improvements which makes them to look stylish. However, when it comes to the engine, the company has done a lot, since it has heavily invested in the production of hybrid and fuel economy cars, hence allowing its customers to enjoy their ride, due to the fuel economy and hybrid engines (Emmons, 2015).

Ford Mustang, is considered as a sport car, with rivals such as Lamborghini, Ferrari and Porsche.  These companies have changed the models of their cars from time to time, making hard for one to predict the new model (Hughes, 2011). This changes have impacted the companies’ positively, since most people have attracted to the new models of cars which are unique and stylish each and every year. The younger generation is also attracted to cars such as Lamborghini, Ferrari and Porsche due to their unique and stylish interior and exterior outlook (Cameron & Quinn, 2011).

Technological changes in the world have forced most people to change their preferences, particularly the younger generation. Ford should change its design in order to attract the attention of the youths, thus making them to become potential buyers (ELLEN, 2011). Ford’s main market is composed of the old, living in North USA, who have either retired from works, or who work in the fields, hence requiring a SUV car. If the company maintains its current design, then it is likely to run of market, due to the lack of market from the younger generation in the coming years (Emmons, 2015).

Ford should only pay attention to the preference of the younger generation, since the older generation constitutes a smaller percentage of the world’s population (Cameron & Quinn, 2011). The youths dominate the whole world, and they tend to affect the designs of most cars, whose companies’ change the designs in order to look appealing to the young generation, hence attracting the, to buy the cars. Ford seems to have a problem with its designers, who tend to cling on the past looks of the cars, thus making the cars to remain the same, even when new models of the same car are made ten years later (Emmons, 2015). Ford as a company needs to embrace uniqueness, and avoid familiarity, which makes the cars look similar thus making the youths to dislike them, due to the old age designs which the cars bear.

The quality of Ford vehicles is also diminishing, according to surveys conducted, most people considered Fords product value being low when compared to that of other cars. This has been majorly attributed to the company’s reliance on a similar design, which makes it hard for it to look for other designs in order to change the appearance of the cars (ELLEN, 2011). Moreover, Ford concentrates so much in the production of fuel economy cars, which are environmental friendly, hence reducing the prices of their cars. Producing cheap cars come with different challenges which include production of low quality cars (Cameron & Quinn, 2011). The company has not therefore been able to focus on improving the quality of its cars.

Ford is supposed to change the design of its cars, and focus on producing unique models which cannot be predicted by anyone (Emmons, 2015). This will benefit the company, since it will attract more customers, hence increasing the sales of its cars all over the world. After improving the engine system of the company’s cars, it will be of importance to improve the design of the cars, hence attracting more customer. In addition, Ford has been in the market for a very long period of time, making most people to recognize the company, and the quality of vehicles which the company produces. The company can be able to dominate again, only if it changes its design, and adopts new and unique designs.

The electrification strategy employed by the company will be very effective, only if the company changes its design. Through the production of hybrid cars, and through changing the design of the cars, ford will be able to beat its competitors (ELLEN, 2011). Most people detest Ford’s vehicles due to their designs which are perceived as being old age designs. On the other hand, Ford motors is highly respected by most people, who believe that it is one of the best vehicle manufacturing companies in the world, but it is only affected by its designs which seem outdated (Cameron & Quinn, 2011).

Introducing new designs will come with a lot of challenges, which include increased cost of production (Emmons, 2015). The young generation is not interest in cars, but on flashy things, which are not very expensive. Most youths nowadays tend to invest in electronics, and consequently show off on the social media. However, when it comes to cars, they are concerned with a flashy car which will not land them into debt (Hughes, 2011). The new generation is basically associated with faking, whereby most people tend to take photos in front of expensive cars and pretend it is their own. The new generation operates under the principles of faking, which makes most people not to rush into buying expensive things, but rather faking to own things which they do not own.

The new generation focuses on what they can afford, and what is important in their lives. They are not concerned with acquiring huge debts from banks, only to end up being auctioned by the banks (Emmons, 2015). Stable youths will consequently go for a cheap, classy automobile, and improve the specification of the vehicle. In other words, while Ford is changing its car designs, it should be very carefully not to make the cars very expensive, since young people opt for cheaper things, rather than for expensive things which may affect them (ELLEN, 2011).

Ford should produce a wide variety of cheap cars, which will allow the company to be able to attract the youths (Emmons, 2015). In addition, these cars should be very different from other models, thus making it easier for the youths to be able to purchase uniquely designed vehicles at very cheap prices. This is a move which will consequently attract more youths to the company. Similarly, the company should hire young designers, who will be able to provide unique designs for the company, which will easily attract the youths. Ford should then incorporate the strategy of electric cars into these cars, thus enabling the youths to spend less while using the cars, due to the less consumption of fuel. Finally, Ford should also use celebrity endorsements as a means of attracting the youth, thus making them to purchase cars from the company. This is a move which will see the company being able to regain its dominance (ELLEN, 2011).

Conclusion

Ford has not been able to attract youths, due to the design of cars which it produces. The company is termed as conservative when it comes to designing, hence its cars look similar, even if the models are different. The company has not put so much effort in changing the design of its models, a move which has made it hard for the youths to be attracted to such models of cars. In addition, the company has heavily invested in its bestselling truck, thus paying little attention to other models. However, Ford can be able to attract young customers, only if it reconsiders its designs. This will allow the company to target the youths, through designing the cars in a way which looks appealing to them.

Reference

ELLEN, H. (2011). Ford Motor Company's Global Electrification Strategy. Business Economics, (3), 167. doi:10.1057/be.2011.10
Hughes-Cromwick, E. (2011). Ford Motor Company's global electrification strategy. Business Economics, (3), 167.
Emmons, C. (2015). Regaining Organizational Health and Vitality: Ford Motor Company's positive adaption to the challenges of the automotive industry crisis. People & Strategy, (1). 46.

Cameron, K. S., & Quinn, R. E. (2011). Diagnosing and changing organizational culture: Based on the competing values framework. San Francisco, CA: Jossey-Bass.

Hoffman, B. G. (2012). American icon: Alan Mulally and the fight to save Ford Motor Company. New York: Crown Business.