Answer to Question #261801 in Management for Rohit

Question

You are the CEO of a US based automotive major Ford motors in India. Your company is facing tough rivals like Hyundai & Kia Motors. You have been operating in India since several years. During 2021, there has been a steady decline in your revenues & profitability. Your market share has also fallen from 4.69% to 3.31% during 2021. Your competitors are eating into your market share slowly & steadily during Covid-19 pandemic times. (Please assume that Covid-19 pandemic is over).

a. What turnaround strategies can you suggest to arrest the decline of revenues & profitability of your company?

b. In your opinion, would it be considered appropriate to pursue a Joint Venture Strategy or should “Ford Motors” go it alone in India? If Yes, state your response with appropriate justifications & reasons & with which vendor? If No, state your response with appropriate justifications & reasons? (5 Marks) (Please assume that Covid-19 pandemic is over).

Answer 1

a) Expand customer base; the organization should consider expanding customer base through various marketing strategies such as improved customer support, promoting a business on internet platforms like social media, company websites, and doing market analysis and other platforms. This will help the company to regain its position in the market.

b) No, Ford Motors is among the biggest motor brands in the country and settling for Joint Venture is not the best option because it still holds reputable and popular brands in the market. The after the pandemic, the business organization must plan to rebuild and show to customers that despite the challenges caused by the pandemic, it remained strong and provided solutions in the industry. There are many market expansion strategies and profitability measures Ford motors can consider and be competent to achieve.