Five global architectures is a long way from the original 30 that Ford once had.Still, it’s a strategic step that the carmaker plans to do in the coming years, as it builds on what former CEO Alan Mulally has accomplished during his term.
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A strategic objective based on this intensive growth strategy is to increase R&D investments for product innovation to improve business growth and competitive advantage.
This intensive growth strategy supports Ford’s generic strategy adjustment toward broad differentiation. Market development is only a minor or supporting intensive strategy for Ford’s growth.
Mulally’s “One Ford” Plan was one of the company’s driving force in helping it stay afloat during the Great Recession.
What’s more, it helped the company avoid bankruptcy by borrowing US.6 billion and mortgaging all of Ford’s assets over his five-year reign.The intensive growth strategies define specific approaches used to support Ford’s growth. Initially, Ford’s generic strategy was cost leadership.This generic strategy supports business competitive advantage on the basis of cost reduction and low prices to attract customers.This intensive growth strategy is linked to the strategic objectives of increasing customer retention and increasing sales to existing customers.This intensive strategy is linked to Ford’s generic competitive strategy by highlighting the benefits of low costs and increasing differentiation to gain a bigger market share. Ford Motor Company uses product development as its secondary intensive strategy for growth.This intensive growth strategy involves offering new products to increase sales revenues.Ford applies this intensive strategy through R&D investments for new products, such as the all-electric Ford Focus Electric.GM used its generic strategy of broad differentiation to offer a wider array of products.Americans were gaining higher wages and started valuing style and design, and not just low prices.However, Ford Motor Company’s generic strategy did not protect the business from competition with General Motors.By 1927, GM overtook Ford to become the largest American automobile manufacturer.