strategic-management

178 ALEN BADAL
Company Brands
Ford consists of five brands and is generally perceived as being an affordable brand name
catering to a variety of consumer needs and wants. The vehicles span cars, trucks, and
super utility vehicles (SUVs). Ford also produces the Mondeo found in Europe and the
EcoSport in South America and some parts of Asia.
Lincoln/Mercury
Ford’s Lincoln (www.lincoln.com) vehicles are perceived as a luxury line and include five
models such as the popular Navigator and Town Car. Ford’s Mercury (www.mercuryvehicles.com)
line also offers five different models, such as the Mountaineer and the Milan.
Mazda
A Japanese line named after the ancient god of wisdom is Mazda (www.mazda.com).
Mazda evolved in 1931 representing a three-wheeled truck combining a motorcycle
and automobile. Mazda today offers 11 different models along with its Mazda Verisa. The
company posted sales in the first nine months of fiscal 2008 of 2.1 million yen (¥).
The company’s Web site contains information about Mazda in some 54 different countries.
Mazda’s revenues dropped from 2.5 million yen in the first nine months of 2007 to
2.0 million yen during that period in 2008.
Volvo
Volvo (www.volvocars.com), a brand name that created the first three-point seat belt, has
built strong brand recognition as a safe vehicle. Volvo in 1955 began exporting cars to the
United States. Ford acquired Volvo in 1999, but the division is now up for sale. Volvo markets
in some 58 countries. This Sweden-headquartered division sells the line in more than
185 markets. This division sold 374,297 units worldwide in 2008, an 18 percent decrease
in sales from 2007. The stronger demand was in the United Kingdom while the U.S. and
Sweden markets weakened. Volvo achieved net sales of $14.7 billion in 2008, compared to
$17.9 billion in 2007, as described in Exhibit 4.
Ford Motor Credit
Founded in 1923, Ford Motor Credit Company (www.fordcredit.com) offers financing to
consumers and dealerships nationwide and is the world’s largest finance company. Ford
Credit offers innovative products and competitive financing rates with flexible terms
applied toward leasing and/or financing purchases.
Genuine Parts & Service
Genuine Parts & Service (www.genuineflmservice.com) offers the know-how about parts,
repairs, and maintenance to owners of Ford, Lincoln, and Mercury vehicles. First introduced
in 1991, the concept was to help provide better owner satisfaction, which has provided better
vehicle brand success for Ford.
EXHIBIT 4 Ford Motor Company Sector Revenues (2007 vs. 2008)
Sector 2007 2008
North America $71.5 billion $53.4 billion
South America $ 7.6 billion $ 8.6 billion
Europe $36.5 billion $39 billion
Volvo $17.9 billion $14.7 billion
Asia Pacific/Africa $ 7 billion $ 6.5 billion
Mazda $ 0 $ 0
JLR & Aston Martin $15 billion $ 0
Financial Services $18 billion $17 billion
Source: Adapted from www.ford.com.