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Strategy of Ford Motor Company

The purpose of this research is to examine the strategy of the Ford Motor Company. Considered in this examination are the external environmental factors affecting the company, and theirimplications for the company. Where appropriate, emphasis in this examination is placed on the "Mustang" automobile line.

Approximately one and onehalf years ago, the Value Line Investors Service predicted that the automobile industry would, within the ensuing four years, enter a slow growth stage, in which the demand for new autombiles would decline somewhat in 1989, and to an even greater extent in the 19901992 time period.1 In early1990, this prediction has materialized for 1989, and appears to be materializing somewhat more rapidly than had been anticipated for the 19901992 time period.2 By the beginning of the 1990 model year, the domesticmarket had contracted dramatically.3 The investment community

1M. Schlein, "Auto & Truck Industry," Value Line Investment Survey, 23 September 1988, 101102, 241.

2M. Leach, "Auto & Truck Industry," Value Line Investment Survey, 22 December 1989, 101102.

3D. P. Levin, "U.S. Auto Sales Drop by 23.1%," The New York Times, 15 November 1989, C1.

thought that the country was experiencing "a fullblown automotive recession with plenty of implications for the industrial sector," and that, should fall season sales continue at the present rate, "it would be tantamount to the bottom falling out of the market."4 All domestic automobile manufacturers in the United States had already shut down some plants, and, if the trend continued, many more were expected to be shut down before the December holiday period.5 These projections have come to pass. The sales trend continued, and plants were shut down.

The sales slump is all the more worrisome for the industry because it developed during a period of extensive rebate offers. Analysts note, however, that the rebates were lower than those offered i...

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Strategy of Ford Motor Company. (1969, December 31). In LotsofEssays.com. Retrieved 07:51, March 29, 2024, from https://www.lotsofessays.com/viewpaper/1684576.html