Competitive Strategies Case Study

Ford vs. GM in Asia

OR

Abstract:

Routed around a century back, the automobile industry had been one of the most globalize and competitive of all industries. It had a global turnover of $ 1.66 trillion in the year 2003. The industry was dominated by a small number of companies with worldwide recognition. In the NAFTA region the Big three players (Ford Motor, General Motors, and Daimler Chrysler) constituted more than 60% share in the world automobile production in 1980. During the 1990s the US auto industry faced a recession due to some inherent problems of excess capacity, higher price, inflation which made this auto-player to move into the growing regions of Asia. Due to high population and rapid economic growth the Asian market had great potential for foreign auto manufacturer.

The case revolves around the two biggest auto manufacturer General Motors and Ford Motors, which were already geographically diversified, had also moved into the growing region of Asia. The case talks about their entry strategies into the Japan, China and India as well as market positioning and competitive strategies to win the Asian market share. With cut-throat competition from Japanese players and the domestic manufacturers will this players be able to sustain their position as an industry leader?

Pedagogical Objectives:

• To discuss the Entry Strategies in developing nations
• To analyse competitive strategies of Ford and GM to compete with Asian rivals like Toyota and Suzuki
• To understand the importance of technological innovations and marketing strategies.

Keywords : Entry strategies; Competitive strategies; Automobile Industry; Asia; Japanese automobile Industry; Competitive Strategies Case Study; Chinese Automobile Industry; Indian Automobile Industry; Car; Geographic Expansion

Contents : 
Global Automobile Industry
Asian Automobile Industry
Ford Motor Company
General Motors Corporation
Financial Results of Ford Motor Company
Consolidated balance sheet of GM
Indian automobile companies and their joint ventures