Unit 4 Strategic Marketing Peer Response
Read the initial posting of at least two peers below, and then provide constructive criticisms to their peers’ initial postings. You should highlight strengths as well as opportunities for improvement based on the Unit’s concepts and terms:
In your Peer Response, respond to at least two students. Note, you will identify the larger strategic implications found in your post and your peer’s post.
Use the following as headers for your peer responses:
1. Strengths: Point out what you perceived to be the strengths of the initial posting along with supporting rationale.
2. Opportunities for Improvement: Identify specific opportunities for improvement with regard to the content in the initial posting. Furthermore, you should provide supporting rationale for your stated position, as well as concrete suggestions and guidance intended to strengthen the effectiveness of the content.
3. Strategic Implications: Identify the larger strategic implications found in common between your post and your peer’s post.
Peer responses should be placed directly into the discussion thread and not attached as a separate document to a posting.
CLutkerUnit4Discussion:
Ford Motor Company was founded in 1903 in Dearborn Michigan and the current CEO is Jim Duncan Farley (Team, 2021). As ford is already trying to be technologically adaptive, they have a fantastic opportunity to produce fuel-efficient cars and commercial vehicles. For example, they can build vehicles that run on different forms of energy. In this way, they have more options for designing eco-friendly vehicles. The 2018’s C-max and fusion hybrid car model can be their most significant opportunity, as they have already captured the market with this new model (parker, B. 2021). Increase customer base-ford is already working on penetrating the automobile market in India and China, they have an excellent opportunity to tap into other small countries in the world and grow their customer base. From July to September 2020, ford’s sales in China rose by 25% to 164,352 units, which indicates the company’s growing customer base in Asia (Team, 2021).
Evaluating the strengths, weaknesses, opportunities, and threats (SWOT analysis) can assist in developing recommendations for a company’s SBU. This is critical with Ford trying to make advancements in electronic vehicles (EVs). With many automobile companies attempting to gain ground on EVs and Tesla leading the way by leaps and bounds, Ford can gain ground if evaluated correctly.
Strengths:
-Global recognition-two brands Ford & Lincoln
-Automotive segment-2nd largest automaker in US
-Strong financial position-driven by demand for SUV and trucks Weaknesses:
-Product Recalls
-Weak foothold in emerging markets
Opportunities:
-Eco-friendly vehicles
-increase customer base
Threats:
-Increased competition
-Strong labor unions
-Increased prices of raw materials
As the current administration continues to encourage automakers to focus on cleaner cars by setting a target of 50% of EVs by 2030. Ford has the strength to meet this demand and is the 2nd largest automaker in the United States. They also have financial backing due to the demand for SUVs and trucks. Ford is currently working on a line of EV SUVs and trucks. But with any change, there can be weaknesses identified. Complying with the target of EVs by 2030 causes a huge challenge for auto workers. The government is allocating $305 Billion in transportation funding given toward the ‘fixing America’s surface transportation (FAST) act’ (House, 2021). These incentives are only for the current year, however, there is a plan in place to extend these for up to an additional 5 years of funding. The federal government is also incentivizing individuals with up to a $7,500 federal income tax credit when purchasing an electric car (Brenner, 2022).
Ford is struggling to get a foothold in this emerging market due to so much competition. This allows customers more choices when selecting the right vehicle for their family. But one additional weakness that Ford is struggling with is product recalls (Reuters, 2022). This has the potential to lose what loyal customers they currently have. It will also show that they have weaknesses when building these types of vehicles. This will shy buyers away from selecting their products. Consumer segmentation can assist Ford in focusing on the types of vehicles that customers are looking for, whether it be SUVs, trucks, or compact cars. This will allow them to become proficient in a product that can lead them to the top of EVs.
With automotive industries focusing on the future, Ford needs to stay ahead of the game by producing a great product that can be reliable and efficient. Evaluating a SWOT analysis is going to give them the data needed to be a potential contender in the up-and-coming electric vehicle industry.
KFrankUnit4Discussion:
Specify and justify why you chose your unit of analysis.
For this analysis, I am choosing the United States auto industry. I am choosing the entirety of the U.S. automobile industry because of its history of positive impact on the domestic economy. The U.S. automobile industry supports a total of 10.3 million American jobs, equivalenting to about 8 percent of private- sector employment (“Driving”, n.d.). From a revenue standpoint, the U.S. auto industry generates 1.1 trillion dollars into the economy each year (“Driving”, n.d.). The industry is experiencing a greater reliance on the U.S. with a greater demand for U.S. auto product exports. In 2020, U.S. car and auto parts exports were about 90 billion dollars worth, 22 percent more than American auto exports just 15 years ago (“Driving”, n.d.).
Strengths and Weaknesses
Strengths
One of the biggest strengths the U.S. automobile industry has is the increasing demand even with higher vehicle prices, production costs, and inventory difficulties. Comparing September 2022 to last September, U.S. new automobile sales increased by 5.4 percent (Reuters, 2022). With this growth, another strength the U.S. auto industry has is its quick response to the electric vehicle demand within the market (Reuters, 2021). Additionally, the U.S. has an advantage of innovation and technology by absorbing a fifth of the R&D spend in initiatives to further transform the U.S. auto industry (“Automotive”, n.d.). Furthermore, several big-name foreign brands continue to invest more in the United States specifically amounting to 114.6 billion dollars (“Automotive”, n.d.). In 2018 alone, the United States was responsible for exporting 1.8 million new “light” vehicles and about 131,000 medium vehicles to over 200 world markets (“Automobile”, n.d.).
Weaknesses
Arguably one of the biggest weaknesses of the United States in this industry is its lack of ability to keep up with the automotive industry in China. Unlike the U.S., the China market holds a strong, consistent year-over-year growth while the U.S. remains at a weak number 2 globally (“Car”, n.d.). Specifically considering recent global economic events, the U.S. auto industry isn’t any different in experiencing the difficulties of the weakened supply chain. A couple of the biggest disruptions this causes the industry in the production of cars is the shortage of semiconductor chips and production warehouse capabilities (Wayland & Kolodny, 2022). With the issue of the supply chain comes the natural challenge of meeting the demand for automobiles in the U.S. The pandemic has caused issues for forecasters to be able to accurately depict future demand with changes in consumer daily transportation needs, evolving employment environments, and health concerns (Tummalapalli & Robinson, 2022).
Identify two items you consider to be the most important for each SWOT categories you choose. The two most important strengths of the U.S. auto industry are innovation and demand. The two most important weaknesses are the U.S. market competition with China and supply chain disruptions.
Justify in your statements why you consider these to be the most important considerations for each SWOT category.
Strengths
Data has shown that innovation and the ability to take advantage of the boom in technology will present themselves as a crucial component to compete in the future of the automobile industry (StartUs Insights, 2022). The U.S. foreign investor recipient of consistently large sums of innovation-designated monies will be essential for the country to remain a competitor in the industry (“Automotive”, n.d.).
The U.S. demand will play into the U.S. auto industry assessing its potential to drive up purchases in the market up against its competitor, China. While this leads to a weakness in the supply chain, with dedicated capital and resources the U.S. must strategically map out how it can tap into the demand in the market that is right in front of it (Reuters, 2022).
Weaknesses
The presence of China in the automobile market is an overwhelming one with more than double the volume of the U.S. (“Car”, n.d.). China has proven its ability to meet demand, its adaptability to overturn supply and distribution disruptions, and its overall productivity compared to the U.S. (Perch, 2017).
Supply chain disruptions are a big challenge to the U.S. automobile industry as it has halted the country’s ability to keep up with its subpar volume as is in comparison to China (Wayland & Kolodny, 2022). The United States auto industry must be able to analyze the Chinese market to assess what may be useful to apply within its own production and distribution centers.
Make and justify strategic recommendations on either: How to turn the identified weaknesses into strengths
China is going to be difficult to head up on at this point with 2.5 times the production volume and the supply difficulties the U.S. has yet to succeed over (“Car”, n.d.). The United States will not overturn China’s lead overnight and must begin the assessment of how China has handled both demand and production. Some critics suggest the U.S. implore offering vehicles at more affordable rates like China to increase volume. Additionally, explore options for more manufacturing and production sites which has been an advantage to China since it took the lead as the world’s largest automobile producer in 2009 (Perch, 2017). Marketing to the global market to increase U.S. sales can promote the comparison of quality in automobiles in the U.S. versus China. Chinese automakers are able to post low-priced vehicles as they use low-cost materials compared to the U.S. The China industry also does much fewer crash tests than any other country in the world (Perch, 2017). If the U.S. auto industry prompted this information to the U.S. and even global markets with the comparison in quality to its own vehicles could attract some of the markets from China and toward the United States auto industry.
JCUnit4Discussion:
Marketing is an important facet of the business, pushing for the advertising of a business’s operations and the products and services a company provides. Strategic marketing involves curating marketing campaigns and activities that push for the acknowledgment of a brand among the market base. To develop a viable and appropriate marketing plan, a business has to evaluate its market and operations and come up with comprehensive insight into the state of affairs of the business. The evaluation of a business includes highlighting its strengths and how these strengths improve and enhance its business operations. Weaknesses are another aspect to look into as it reflects on the areas that need improvement and supervision to mitigate the risks posed by these weaknesses and further push for improvement and possible upgrading. Business operations open businesses for opportunities that may involve their skill value, or that could be related or interlinked to a certain field covered by a business. Evaluating these opportunities offers a prospect of the possible markets a business can have, which subsequently encourages growth and expansion. Businesses also face threats from other businesses, which could pose a risk to the business through competition, or it can be a motivating force towards bettering services and expanding operations to meet competitive standards (GURL, 2017).
General Motors has several strengths and weaknesses attached to its operations that have shaped the company’s affairs. A strength held by the company is the transition from gas-powered vehicles to electric vehicles, which are on the verge of taking over automotive sectors for their less emissions and cutting costs. Electric vehicles have surged in the automotive industry since they offer more sustainable ways to automotive and are considered better for the environment than gas-powered vehicles. The company has also featured technological advancements in its operations, influencing the make and properties of vehicles produced by the business, such as electric power steering options and super cruise hands-free driving. The company’s management adds to its strengths since enthusiastic individuals lead its management to improve the company on all fronts, which involves them taking the necessary measures to influence progress and improvement. Another strength lies in the company’s ability to manufacture its cells with zero emissions, cutting back on costs and promoting the push for sustainable advancement that favors the environment (Bayou et al., 2008).
Weaknesses faced by the company include the lack of proper charging stations within the market, which disadvantages the company and its clients. The company’s limited brand portfolio with minimal product differentiation also disadvantages it, making it less competitive in this context. These weaknesses do not favor their competitive ability and could threaten their expansion in the market and the sales of their products (Coase, 2000).
Owing to the growth of preference for “electric vehicles” over “conventional vehicles”, General Motors could benefit from adding and constructing more charging stations across the market to help their customers with easy access. Change is described as inevitable and viewed as a catalyst for progress and a channel for different new ventures. A change could favor General Motors concerning its product differentiation and brand portfolio, which could mean a change or more ‘complex/diverse’ direction in the making of products by the company. It would help the business grow more if it considered diversifying its products and settling in unknown and unchartered fields, which would increase its brand portfolio and, subsequently, its competitive advantage.
