Mr. Ford's Impact On The Automotive Industry

Automobiles are a necessity today, just as they were back in the early 1900’s when Mr. Ford built and started his company. Over 100 years ago, the Model A, and Model T were very basic and made of heavy steel to withstand the use and the harsh environments they faced (Ford, 2015). Throughout American history the automotive industry continues to change, and the changes create a ripple effect on the industry in regards to competitors, labor force, suppliers. While there is no real threat of a new auto manufacture, joining America’s Big Three, there is a threat when one of them introduce a new automobile or completely redo an existing one, like Ford’s latest F-150 series. These changes create additional effects felt by others outside of the automobile industry. Mr. Ford’s strategic plan from 100 years ago, on reducing labor hours, while rewarding his employees is still alive and well today. Now, just a few years ago, when Ford welcomed the aluminum body truck to the market, their rival competitors were hoping to see the F-150 crush as easily as a soda can. Not the case, Alisa Priddle from the Detroit Free press (2015) confirms the F-150 claimed a perfect five-star rating in safety, delivering a safety threat to their competitors. Competition is

Specifically, introducing the 2015 Ford F-150 to the automobile industry with an aluminum body delivered a new threat to General Motors, Chevrolet, and Dodge. Additionally, earning a five-star safety rating made the F-150 an easier bargaining strategy for Ford. This rating could entice Ford’s competitors’ customers to change manufactures due to the safety. Moreover, despite the auto industry saturation within the country, the consumer lacks bargaining power due to the large variety of different models offered, however, this is not the case for the suppliers (Ketchen & Short,