The Electric vehicle market is still at its infancy, however, as the industry continues to improve and use new technology to make the vehicles more efficient and profitable, almost all auto manufacturers are striving to capture a piece of this market. The biggest hurdle facing new entrants is high manufacturing cost of the vehicles, since most of them are startups and have no other products in their portfolio. Ford Motor Company is relying on its economy of scale to produce its electric vehicle at much lower cost, hence can sell at relatively lower
price in order to capture a greater share of the market. Rivalry among Existing Firms Unfortunately, Ford was late to EVs market and there are will be many direct competitors such as Nissan Leaf, Chevrolet Spark Electric and Smart Electric Drive. But Ford is still the first mainstream US automaker shipping an EV. Nissan Leaf is the closest competitor to the Ford Focus Electric. Threat of Substitute Product Electric Vehicles and for that matter Ford Focus Electric’s biggest threat will likely come from substitute products such as hydrogen cell fuel vehicles. “Hyundai and a handful of
car makers introducing hydrogen-powered cars. Last November, Hyundai announced leasing plans for its Tucson Fuel Cell vehicle for $499 a month for a 36-month term and $2,999 down. And, the deal comes with unlimited free fuel. Hyundai boasts of the longer range of hydrogen cars (265 miles vs. 100 miles for mainstream, or cheaper, electric cars). ” Hydrogen cars also have quicker refueling time and the refueling process is very similar to that of a gas car: 5-10 minutes vs. several hours or more for an electric car, he said. Plus, there’s an “infinite” supply of hydrogen.
As the technology of renewable sources for powering vehicles continue to improve, electric car-makers will have a tough time maintaining their market shares. Bargaining power of buyers There is a lot of information about electric vehicles available t to the consumer on the internet, making buyers knowledgeable about competitive product and pricing in the. This gives prospective buyers of Ford Focus Electric have strong bargaining power. If the price of Ford Focus Electric compared with that of other electric cars is higher, they may turn to buy other brands. Bargaining power of suppliers
The bargaining power of suppliers of the components in the electric vehicles is not very strong. There is high number of suppliers especially in low labor cost countries such as 4 China and India, producing high volume component parts for electric vehicles, electric scooters and electric bicycles. As a result, suppliers were under intense pressure to keep manufacturing costs low. The invention of more cost effective products such as hydrogen vehicles is only going to weaken the bargaining power of Electric vehicle component part suppliers. Internal Environment Firm Structure and System
Ford Motor Company is an American multinational automaker. It is a public company and the second largest U. S. -based automaker and the fifth largest in the world, it has over 181,000 employees worldwide and being a global organization Ford exhibits an incredible complex structure fairly mechanistic in nature. The leadership team is made up of 17 boards of directors, 19 member executive group and 23 member vice president group in charged of key departments and divisions all over the world. Ford shows a low span of control overall, hence under these chief officers works a
number of respective directors. Plus, there is a clear chain of command flowing from CEO to vice presidents to department directors and employees. In addition, despite offering opportunities to free opinions, the ultimate decision power still is in the hands of top management only, which represents high degree of centralization. Firm Culture Ford supports participative culture and open communicative system. It is characterized by a strong culture with key values being intensely held and widely shared. “Throughout the history of ford motor company, inclusion has been as much a part of the company’s
success as a great products the company’s diverse employee base has created. ” Firm Resources Marketing capabilities: Ford has over one thousand well equipped to sell electric vehicles across the country. These dealerships are serving as distribution channel for Ford Focus Electric. The dealerships will also provide after sales services including regular maintenance and repairs. At the corporate level, Ford has a marketing department managed by experienced marketers and they a wide range of communication methods to
share information about Ford with potential customers and to get feedback from drivers and other stakeholders. Financial capabilities: Ford is well-financed company. As of the end of the third quarter this year, the company has over 26 billion cash in hand. This amount is more than enough to finance this marketing effort as well as ongoing operating expenses. R&D and technological capabilities: Ford’s capability in this area is about the best in the industry. Ford has being performing R&D’s and technological break through and 5 producing vehicles since the 1920s.
In relation to it’s electric vehicles, Ford’s vice president of powertrain engineering said “Ford is moving more battery research in-house and has hired 60 engineers in the last year, bringing its electric-vehicle engineering staff to more than 1,000. Almost all of the electric-vehicle engineers will work under the same roof to foster “an innovative atmosphere”1 Operation capabilities: Ford’s operation spanned 200 countries and has a significant influence in motor industry all over the world. In the recent two decades, the competition became more and more fierce.
Ford was finding ways to save their unnecessary cost and gain market advantages. The effective supply chain strategy is an important component in the operation to keep the advantages of globalization. Although Focus Electric began production in 2011 and only in 3 states, it started deliveries in 2013 in Europe. Human capabilities: Ford has over 181,000 very capable employees all over the world. The employees have the necessary credentials and experience which enables the to efficiently perform the duties of all the divisions successfully