Mustang Ford Assignment Example | Topics and Well Written Essays - 1000 words

Mustang Ford - Assignment Example egies that enable them to retain and also attract more customers, for instance, by lowering their costs, improving quality of their products, and producing vehicles with attractive features. Ford is forced to adopt the same strategies to compete with these industries and stay competitive in the ever changing market. A strategic group in the automobile industry consists of industries which face the same factors of competition and carry out the same strategies in similar strategic dimensions. According to Mahoney (2005), strategic groups in the automobile industry usually begin with the choice of dimensions of strategies. Different dimensions will be employed in defining strategic groups: quality of products, cost position, identification of brand, services, financial leverage, and specialization. Reluctance of banks to give car loans. Unavailability of credits from banks puts much strain on Ford’s capital. Ford has to ensure that its sales are stabilized, or it may be forced to seek monetary assistance from the government. More customers are now opting for environmentally friendly vehicles. Ford has taken advantage of this opportunity by developing an ‘Eco Boost’ technology, which the industry is using to manufacture cars that have 20% greater efficiency in fuel use and also have reduced carbon dioxide emissions (Hitt et. al, 2012). Due to the increased environmental awareness, manufactures make environmentally friendly vehicles that are more marketable because of the need to conserve one’s environment. There are few manufacturing automobile industries compared to the number of consumers. New technology is available in this industry, and this has made it possible to manufacture cars according to what consumers prefer. Mobility barriers will prevent the industry from moving to a different strategic group. These mobility barriers will ensure that the industry does not face increased rivalry and that it still is able to make sufficient economic profits