Owing to the competitive nature of the automobiles there is no doubt that, Ford needs to expand its market as well as its presence in the Asia-Pacific region, Europe and South America. It is apparent that if Ford does not work well on its strategies, it is likely to be overtaken by the other automobile companies. Ford would therefore lose its market share to companies such as General Motors, Hyundai Motor, Nissan Motor and Volkswagen who command a good portion of the market in the said regions.In the three regions, growth seems to be rosy in the Asian-Pacific region and Ford has to put all mechanisms to ensure that it taps the market. For instance, the high number of cars sold in Thailand in 2012, indicates that the Asia has the potential in production. About 1.4 million cars sold strongly suggested that Asia remains a strong automotive production hub worldwide (Santanu).

In bid to increase its market share in the foreign market and remain competitive enough, Ford has come up with a strategy called One Ford Plan (Santanu). The strategy makes sure that the company looks at the global market as a whole and integrates all resources in areas where there is need, in order to serve one common global market. With this strategy in place, Ford looks further to making new entries and revamping its presence in every market across the globe. This plan will see Ford bring in great trucks and utilities to the market, compete favourably, and ultimately give its customers the best market service.

Currently, the company boasts of about 4% market share in Thailand, which was a growth from 2% in 2010 (Marketline 4). In the Asian region, the company commands about 3% of market share and with clear plans in place, its growth is evident (Marketline 5). Globally, the market share stands at 7% and is set to rise given the strategies that are to edge out its competitors in the market (Muller 1).Ford Auto Company continues to improve on the retail capacity, dealership network and manufacturing capacity in order to support growth in the Europe, Asian and South American markets. The company is the first to set its toes in Myanmar having an operation of a full service dealership that includes areas of sales, service and parts in this region. Given that this will be a new market, the company has plans to employ the best strategies to ensure that it commands a great market share and customer loyalty in the region (Muller 1).

With the main strategy of One Market Plan and product differentiation, Ford is set to increasingly grow and command a large customer base in the Asia, South America and Europe (Ford 5). The plans are set with the company identifying the strongholds of its major competitors with the General Motors commanding a large portion of South America and Europe. Volkswagen also competes favourably and has customer loyalty in Europe. Hyundai Motors and the Nissan are the main Asian competitors that poise to threaten Ford in the Market (Grant).

Analysis

There are a number of reasons as to the competitive nature of these markets. These reasons put Ford at a position to ensure that its customer base is large enough and continuously produces quality products that meet the demands and needs of its customers. Ford therefore, has to come up with some of the best and enticing strategies to command a large portion of the Market in Asia, South America and Europe (Ford 11).With more emphasis put on the need to conserve environment and produce eco-friendly materials globally, the automobile company has a lot to do to remain competitive. Many consumers, organizations and governments of first world countries focus so much on product quality with a lot of bias on fuel price and its related environmental issues.

In one of its leading markets, South America, Ford has ensured production of cars with existing needs and demands of customers in relation to environmental issues. In line with its goal of producing global products, Ford Co focuses on offering smaller versions and midsize vehicles. The smaller vehicles have low fuel consumption and therefore low remittance of carbon materials as well as other products to the environment. Some of the vehicles under this platform include Fiesta and focus-sized small cars and utilities, Fusion and Mondeo-sized midsized cars and utilities, commercial vans and compact pickups.

Ford has always complied with the increased call for investing in science, technology and fuel efficiency by different countries. The response from the company has ensured that the company remains relevant in its production amidst the new world challenges. A case example is the Brazilian government announcing new tax breaks for companies that would invest efficiently in science, technology and fuel. Given the significance of this market, Ford has to come up with a good strategy to ensure that it remains relevant in the world’s fourth largest automaker. In response to this need, Ford has committed a significant amount of about R$ 4.5 billion by 2015 to ensure the delivery of high quality, more fuel-efficient vehicles and production of products that satisfy all the global needs entirely (Santanu).

With dynamic changes in demand of customers worldwide, Ford has put in place comprehensive plans to ensure that customers’ needs are met. In 2012, the company launched the new EcoSport in two different and additional versions, this were 4WD and automatic. In order to meet the needs of Argentina’s market, the company for the first time launched the EcoSport in the country. During the Sao Paulo auto show in 2012, the company launched the Fiesta Sedan. With increased efforts to meet the demands of its market in South America, the company launched the Ranger, which cost the company an estimated $250 million (MarketLine 6). Because of the company meeting the needs, the new Ranger significantly reached the best sales capacity in the light pickup section.

With increasing numbers of middle class in the Asian, South American and Europe market Ford has much more task to deliver quality, efficient, quality and affordable products to these important segment of the population. Ford has to increase its production of luxury cars given that a large number of this population fancy the luxury cars. However, it is not only production of luxury cars but also making them quite affordable to the increasingly growing middle class in these regions. The spirit and the reasoning that was advanced by Henry Ford must continue. It is even more evident that what most individuals take home in terms of wages is sufficient enough to get them a good model of Ford products, but only if they are made affordable.

According to its plans in the Asian-Pacific region, Ford aims to meet the demand of the growing portion of middle class. It will deliver on this by exporting substantial portion of its total vehicle production in the region in a span of four to five years. With a production capacity of about 200,000 vehicles and about 340,000 engines every year in its factory in Chennai, the demands of this population is set to be met. There are plans also to set up a facility in 2014 in Sanand. This facility will be able to manufacture 240, 000 vehicles and 270,000 engines annually (Santanu).

Given the tight competition in these markets, there is increased demand for sport utility vehicles. Ford India still faces a myriad of challenges amongst them is supply of gasoline versions. The local unit that produces gasoline versions for the Ecosport customers has stopped taking orders making them to wait for the delivery of the SUV in six months. In order to meet its customer diversity, Ford makes two distinct engine types, 1 litre engine to support EcoBoost family of engines and 1.5 litres to boost the EcoSport. The company also sells the SUV with 1.5 litre diesel engine (Muller 1)

Most of the global automakers use the offshoring strategy and produce cars with a low cost skill in India as compared to Ford. This therefore results in production of affordable luxury cars as compared to Ford.The company in midst of its growth faces challenges of production of low quality products. Given the impetus of the quality issues in any automobile company, the cars with faulty parts have to be recalled. The recalling always poises to be a challenge on quality, integrity and competitiveness of the company. These quality issues if not addressed on time risk to cause injuries or accidents. For instance, the company had to recall about 166, 000 cars in India to check on the reported faulty parts that were potential causes of vehicle breakdowns or even fires (MarketLine 7).

In August 2012, the U.S automaker had to recall the Figo sub compact hatchback and the Classic compact cars in order to check for the faulty rear twist beam and power assisted steering hose. This was a major setback for the company as it recalled about 128,000 cars. The crack in the rear twist beam causes abnormal noise, which in most cases leads to reduction in performance and even renders the vehicle obsolete. The oil, leaks from the hose of the steering system could possibly be exposed to the vehicle’s exhaust components resulting into smoke that under adverse cases may lead to fire (Santanu). However, the number of faulty cars or cars with faulty parts has been quite high for Ford products as compared to other players in the market. In India, General Motors, Honda Motor, Mahindra and Mahindra Ltd, and Toyota Motor Corporation recalled a collective 300, 700 vehicles in one year given that they failed to meet the manufacturing standards laid out by the society of manufacturers.

Recommendation

Given the competitive nature of the automobile company and the limitations discussed in the analysis section, there are a number of recommendations that have been fronted to ensure that Ford products remain vibrant and command global brand loyalty.Ford should optimize the location of the value chain activities in Asia-pacific region. Ford can do this through numerous partnership programs with the local partners at its places of operation. In doing so, it can easily open more production centre through joint venture or strategic alliance with the local partners (Muller 1). This in the end generates positive impacts as the company reduces manufacturing cost while at the same time lowering the risk of imitation. With optimization of location, Ford is in a position to work with the local suppliers and in the process identify the key needs and demands in the region in order to be a notch over the rest.

Ford Motors should also consider investing in newer products that would aid in meeting the demands of the market through cost effective solution (Miller 63). It should continue to invest heavily on small cars with gasoline and diesel engine options. Such engines could be 1.0 litre and 1.5 litre unit on EcosSport. The exportation of the sport utility vehicles manufactured should be expanded to the South Asian countries, as this would boost the profitability and growth of the company.The company should also deal consider coming up with more vehicles that comply with the set standards of environmental conservation. The vehicles should run on clean burning, affordable natural gas or the liquefied petroleum gas (Tollefson 1264).Given the strong challenge that Volkswagen and General Motors poses on the European market; Ford Motors should consider introducing new vehicles that would present better value to its clients.

To minimise the rate and number of cars that are recalled every year due to faulty parts, the company should strengthen its quality check in the entire production process. It can strengthen this by having more professionals and frequent supervisions on its products especially along the assembly line.Given the challenges that are faced in some economies like India, resulting in reduction in production, the company should find it appropriate to divert its attention and production energy as well as strategies to more productive areas (Grant). It should also focus more on analysing constraints faced by the firm in order to increase its productivity.

Outcomes

With the proper recommendations put in place for the company, it is with no doubt that, the company will ultimately grow. With the venture of the markets and expansion of exports into the South Asian region, the sales and profitability are set to increase. The good choice of markets as well as plant location is likely to increase the general productivity of the firm.Through compliance with the environmental standards and needs of customers, the company will ultimately produce environmental friendly vehicles at affordable price.Minimisation of recalling of vehicles through comprehensive inspection and checks to the vehicles in the assembly line offers a chance for growth and production capability (Grant).Coming up with new vehicles that offer customers a better value is a smart way in which the company will ultimately be reacting to the potential market growth. The company involving itself in expansion from a global presence of 7% to above10percentage is likely to boost its market growth (MarketLine 9).

Works Cited

Ford, David, and L. C. Leonidou. “Research developments in international marketing.” New Perspectives on International Marketing, edited by SJ Paliwoda (2012): 3-32.

Marketline. Company Profile :Ford Motor Company. (2013) :1-12

Miller, Irv, and V. P. Toyota. “Planning and Strategic Management.” Fundamentals of Management (2013): 63.

Muller, Joann. “Why Ford Should Worry.” (2012): 34-36.

Grant, Robert M. Contemporary strategy analysis and cases: text and cases. Chichester: Wiley. com, 2010.Print

Santanu, Choudhury. Ford CEO Sees India Becoming Export Hub . Wall Street Journal, 17^th June. 2013. Web 12 Nov. 2013.

Tollefson, Jeff. “Hydrogen vehicles: fuel of the future.” Nature 464.7293 (2010): 1262-4.

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