Monday, March 22, 2010

Fords core competency is in its value chain and brand recognition

Ford is well renowned for being the originator of the mass production system; but it has been over a century since. Since any large auto maker now uses the mass production system, what “is” the Ford’s core competency then? To start, it’s Ford brand recognition on a global scale. Let’s play a word association game. If you had to name of a car model for each product type what would be your answer? SUV (Explorer, Suburban), family sedan (Camry, Taurus), muscle car (Mustang, Camaro), truck (F150, Tacoma), family van (Odyssey, Wind Star), coup or compact (Civic, Accord)? While Ford does not have a model in every category it does in most.
A more strategic core competency of Ford’s is its global supply chain network. Ford’s strategic alliances and supplier base is quite possibly one of the most advantageous in the world. Thanks to Ford’s global supply chain network it is competing and leading on a global level.

1 comment:

  1. Agree here that Ford's restructuring probably saved it through really making strategic decisions on the necessary global supply chain...at least they got through the last roundd of crisis...we'll see

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