Ford – an Integrated E-Business Strategy
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In 1999, Ford built an integrated e-business strategy. Discuss in brief Fords e-business strategy and its components that sought to transform the company and help it gain competitive advantages. Evaluate its e-business strategy and comment on the gaps it any.
One of the biggest challenges in online retailing is potentially explosive channel conflict. What steps did Ford take to avoid such a conflict?
In early 1999, Ford announced an integrated e-business strategy, with the objectives of creating an interface among customers, dealers, vendors and ven competitions. The SWOT analysis was studied for the developing the strategy, as well as the chances of success of such strategy. With Fords desire to shift from dealer center selling to consumer center selling, we looked at the typical characteristics of online customers and how dealer could reinvent them to remain relevant in the changing automotive industry. The quest of Fords foal to become the worlds leading consumer company that provides automotive products and services has completed Ford into integrated e-business strategy in connecting with consumers through multiple touch pints namely Fords automotive-related services. (i.i. Hertz, Ford Credit and Kwik Fit) Ford has also reviewed her competitive advantage against her challengers to remain on course of her vision: To become the worlds leading Consumer Company for automotive products and service.
Introduction
With the rapidly advancing technologies that are occurring in modern business, organizations are required to be ready and able to adopt within their ever-changing environment. It is true across all diverse industries that in order to stay competitive, organization must be able to utilize the various tools that etchnology has to offer. Technological factors have been of growing importance, particularly in recent years. A major factor involved in these technology issues is the use of the internet as a major issue to modern organizations. The internet has been rapidly growing since its inception and is now commonly used in all sectors of societies, in all corners of the globe. The internet has quickly become one of the most valuable assists in modern technology and as such is developing as an integral part of modern commerce.
Fords B-Business Strategy
In early 1999, Ford announced an integrated e-commerce strategy with the objective of creating an interface among customers, dealers, venders and even competitors. The strategy was expected to improve its supply chain management practices (through the creation of B2B integrated supplier exchange), develop long-lasting employee relation to offering features customized according to the needs of the customers, online. Hence the main objectives were to bring speed, convenience and information to customers. This initiative made Ford one of the first auto manufactures to do business through the internet.
A SWOT analysis identifies a companys internal strengths and weakness and possible external opportunities and threats. Hence with this information, Ford began to formulate, and possible implement competitive strategies to deal with its future.
Strengths: Largest truck manufacture in the World
Weakness: Loss of market share – Due to foreign competitors, such as Toyota Motor who is increasing market share in US
Opportunities: Asian automotive market- Ford Motors has formed strong links in the Asian market with stakes with Mazda
Threats: Global industry exposure – Auto & Truck manufactures industry has seen a dramatic slowdown over recent years. This is due to world economy and increase cost and competitors challenges.
Fords chairman and CEO, Bill Ford has a simple strategy, vision for the future is simple: He spooked “We want to build great products, a strong business, and a better world. Fords vision – To become the worlds leading Consumer Company for automotive products and service.
There are many obstacles on Fords path to achieve his vision. To increase rate, Ford must shift from a dealer center selling, where consumer choose from the limited selection on a dealers lot to consumer center selling, where the buyer gets what he/she actually wants. Cars are not like computer, which have just a few components and could be shipped by UPS in couple of days. Automobiles have thousands of parts produced by thousands of suppliers; hence the biggest challenge/success factor is to integrate all the individually wired entities in the value chain into a single, large network
In addition, Ford needs to be constantly wary of stiff competitors like Nissan who claimed to be the first major automaker to introduce Web-enabled build-to-order (BTO) manufacturing and that its front-end configuration engine will provide the basis for a Dell-like custom manufacturing system which Ford is rather skeptical about. The tussle with Franchise laws, especially in US, is also a perpetual issue in which Ford has to content with and it will continue