Ford Strategies

Ford Strategies

Ford Motor Company has been around for over 100 years and is a name recognized around the world. Henry Ford, the company's namesake, innovated industry with the invention of the moving assembly line and created the first affordable car in the Model T, with more then 15 million sold. The Ford Motor Company led the way into globalization by entering the European market 20 years ahead of the European Economic Communities arrival and created its North American Automotive Operations, consolidating Canada, America, and Mexico operations more the two decades before the North American Free Trade Agreement. (Ford, 2007) Ford has been able to maintain its position as one of the worlds leading businesses by making acquisitions, joint ventures, and strategic alliances.

Ford's largest presence outside of the US has been in Europe. In the 80s and 90s, Ford acquired Aston Martin, Land Rover, and Jaguar, all British companies and Volvo which was based in Sweden. These acquisitions allowed Ford to increase their product base and provide the ability to introduce Ford vehicles to new markets.

Aston Martin was purchased from Victo Gauntlett in 1993. Ford modernized the manufacturing plants and in 2002 manufactured 6000 DB7s, more built than all previous DB7s combined. Now Aston Martin is considered an innovative leader in top of the line exotics and racing circuit cars. This year, Ford sold Aston Martin to a British Consortium.

Another major acquisition for Ford was purchasing Hertz Rental Car Company in 2001. Hertz is the largest general use rental company in the world. With over 7,200 locations in the US and over 150 countries, Hertz gives Ford high visibility around the world. It doesn't hurt that Ford purchased a company that has been profitable for 86 years straight, since its creation, and was one of the few companies to remain profitable during the recession that followed September 11, 2001. Ford is also able to sell its cars to Hertz for rental, which then allows potential customers to test drive a Ford while performing business as usual.

Ford has also been able to grow by making key ventures with companies that open new markets. China has the fastest growing economy in the world. In 2006, China doubled the number of privately owned cars and Ford was able to be a part of that because of its joint venture with Mazda of Japan and China's Chang'an Motor. Chang'an Motor will manufacture both Ford and Mazda cars. Because of stringent laws in China, joint ventures such as these are needed to allow Ford into the Chinese Market.

Microsoft and Ford are currently working on a joint venture to build and sell cars over the Internet and on a wireless Internet connection that will allow consumers to upload and download email and music to the car. This venture will allow Ford to reach all points of the earth as long as they have an Internet connection. CarPoint will allow customers to connect directly to Ford's supply and delivery system and order any