Management and Organizational Studies 4410A/B Lecture Notes - Lecture 9: Automotive Industry, Switching Barriers, Financial Services

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 4410A/B
• Professor: John White

Document Summary

Provide financial services via ford motor credit. Non-financial: accelerate one ford plan, deliver product excellence, driving innovation in every part of the business, best in class for all vehicles, make sure that vehicles are accepted and adapted by consumers around the globe. Smart: to very specific and measurable, not do they have a time frame associated with it, most have to do with change in culture, attitude . Consumers: strong threat low switching cost: customers can negotiate price, but a lot of choice. New entrants: moderate threats: high barriers to entry, saturated industry, suppliers are controlled by current competitors, but watch tech companies like apple or google. Substitutes: strong threat: public transportation, bicycles. Suppliers: low/moderate threat: vertical integration (manufacture a lot of their own products, lots of choices, quality could increase the threat, decreasing # suppliers in the industry. Introduce switching cost (loyalty program), vertical integration to reduce supplier power.