Discuss the competitive rivalry between the two companies The auto industry is one of the most competitive industries in the world, with more and more classes and types of vehicles being manufactured and unveiled every year. Two of the leading companies in this industry include General Motors and Ford. The intense rivalry between Ford and General Motors is considered to be the mother of all competitions, with the rivalry starting out as early as 1908. The two companies have been contesting it out for returns, market share, and also boasting rights. In the contemporary business setting, these two major firms in the auto industry are battling a serious content over market share. In particular, General Motors is presently the leader in general, however there continues to be debate as to who is the actual winner. In accordance to statistics, General Motors has a market capitalization of $50.9 billion whereas Ford has a market capitalization of $44.8 billion. With respect to revenues, the competition between the two companies is all the more intense with GM having sales of $166.4 billion whereas Ford generated $151.8 billion in revenues. With regard to the net incomes generated in the latest financial year, Ford had $4.6 billion in profits whereas GM generated...
One of the ways in which this takes place is the pursuit of economies of scale. Being in the automotive industry, the evolution has been steered by the endeavor to find scale economies. This is owing to the reason that the relationship between market share and return on investment for the companies is stronger in industries that are mature compared to industries that are emerging. Another significant manner in which the two companies interact in competition encompasses differentiation. Imperatively, selecting a particular market segment can be a fundamental determinant of dissimilarities in the performances of the firms within the similar industry, such as GM and Ford. For instance, in the present day market, both companies are incessantly trying to escape the serious level of competition in the marketplace through crossover vehicles that are dissimilar from the prevailing market segments. The companies are constantly attempting to satisfy consumers with their needs and come up with features that are not only appealing to them…References
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It does not want to be left out of a potential boom entirely, even if it is skeptical. Opportunities As well as the opportunity to become a part of the online marketplace, Toyota also has an opportunity to cut costs in one of its weaker markets where it still wishes to retain a visible presence. Toyota is in negotiations with the German automaker Volkswagen so it can standardize more components and
Recommendations The key competitive advantages that Ford Motor Company of Canada must concentrate on include the following. First, the continue growth of supplier relationship management and tight integration at the quality level of sourcing and procurement (Baker, Artinian, 1985) is critical. This will alleviate any increases in the 78% of their cost structures that are dedicated to sourcing and procuring products, well above industry norms. Second, the use of R&D funds
Ford believes that the four cornerstones of competitive advantage are efficiency, quality, innovation and customer responsiveness. Ideally, the company would be able to execute on all of these at once, something that is a challenge for even the best firms. However, if that is how Ford wants to compete, then the pursuit of these advantages must be tied into the company's strategy, and for these to be a genuine competitive
Competitive Strategies of Google and Microsoft The Battle for the Future of Search: Comparing the Brilliant, Competitive Cultures of Google and Microsoft Both Microsoft and Google have emerged as catalysts of remarkable growth in the high technology industry. Each of these companies have a very unique, finely-tuned series of strategies for managing the innovation processes, including the steps each rely on for creating new services. Each also has shown remarkable success at delivering
The economic environment is difficult. The United States may finally be showing signs of emerging from recession, but the recent economic difficulty has taken its toll of Ford. Following the short-lived spike provided by the 'cash for clunkers' program, auto sales have slumped again. Many competitors saw sales fall dramatically in the wake of that program. Ford, however, did not suffer as much. While two of its most popular models,
There is little indication in Ford's financial statements that things are going to improve any time soon. The company actually hailed the 14.2% market share in North America as "the lowest market share decline in the past ten years" (Ford Motor Company, 2009). Ford's financial position is nothing short of awful. The company's condition has deteriorated steadily over the past five years, and its performance relative to industry peers is
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