Ford Critical Analysis Paper:
Context:
Ford is a motor company that is looking forward to implementing a ride-sharing application. This is an application they are opting to optimize to its level best unlike Uber services which the company assumes has some drawbacks. Moreover, Ford is looking forward to diversifying its services by not only focusing on car manufacturing but also offering the riding services. This is meant to attract investors to the project and attract even the government to venture into their services.
PEST Analysis:
Implementing the ride-sharing application comes with various constraints in mind that the company has to work around to make their project marketable. Firstly, the company has to comply with the government laws and regulations are provided from a political perspective. Furthermore, the project requires the deployment of technologies that are of actual limitations. This is because the car services have to be synchronized with one management system. Moreover, the company is working to offer services that are unique in a way to differentiate themselves from companies such as Uber (Emily Badger, 2015). For this reason, what works for them is that the services are marketable, but big questions are there concerning their satisfaction to their customers.
SWOT Analysis
In this project, many opportunities exist in the market to make it a very viable venture. Satisfying multiple individuals at once is a unique feature that makes them stand out in the market. Furthermore, looking at the applications such as Uber, their implementation is so unique because other companies include a mobile car application in their concept. This level of uniqueness in the ride-sharing concept gives them the big opportunity to make such a significant impact on the marketability of their idea.
Problem under Examination
Ford as a company is looking forward to focusing less on analyzing and conducting research work on the different vehicles that other car manufacturers make. They are geared and centered towards performing an analysis and implementing new ideas on their products (Emily Badger, 2015). Ford is geared towards solving key areas regarding mobility. One of the issues they look forward to addressing is the multimodal urban solutions and flexibility use and ownership. The company is focused towards getting a solution to these significant areas they feel that problems exist.
Alternatives
Ford Motor Company has various ways in which the designated project can be implemented. One, the given project can be either carried out in a similar manner like the cab services, which do their computations based on the number of miles given, or can be done in a similar fashion to bus services, that charge per trip to the freight destination. The motor company is in a dilemma wondering which mechanism suits their way of implementing the ride-sharing application.
How to tell Good Strategies from bad Strategies
Understanding good strategies from bad strategies requires an analysis of the risks taken and doing a cost-benefit analysis. Based on the options the company has, it is relatively difficult to decide on the best operation mode from the two. The best way the company can implement the project is ensuring that their services are executed in a similar manner to the way cabs operate. By employing similar operation modes similar to those of cabs, this can be a good strategy since the risk taken appears to be low and the benefits you get are higher as compared to operating in a bus-like service mode. This helps in the differentiation of good from bad strategies.
Cost-Benefits for the Alternatives given:
The options that Ford Company has come with various costs and benefits to them. First, for both alternatives, the cost to pay the drivers is there. Moreover, costs to fuel the cars is also required so that the distance covered is well-calculated. Moreover, there exist the depreciation cost of the vehicles used for their services. On the contrary, these costs come with benefits; they include: having the highest levels of satisfaction for their customers. Furthermore, the company benefits by investing in their products and maximizing their profits. Lastly, the company benefits by the encouragement they offer to their customers to use their service.
Choose the Best Alternative
The best choice, in this case, sticks to the “cab-like” operational mode. With this mode of operation, it is easy to have the highest benefits from it by ensuring that the touch between Ford and its customers is close. Furthermore, this operational mode enhances the logic used in the computation of prices and seems to be a satisfying means not only to the company but also to the customers themselves. Lastly, choosing this operational mode makes it easy to satisfy multiple customers at a time which is one of the primary goals of the project.
Implementation:
Implementing the project in this operational mode requires precision in its execution. It is in this mode that synchronization of services has to be right and on point. Customers need to be satisfied by the services offered by Ford, which raises an issue of the number of customers required per trip. Lastly, the implementation of the project is subject to thought and calls for an actual scrutiny of the cost and benefits the project brings about.
Has the Issue been addressed?
The operational issue is not a problem that has quite been addressed. So much of analysis is required regarding customer satisfaction, the cost the company is subjected to, and the benefits they gain from the project. It is an idea that needs to be addressed by critically looking at the economic value it generates for the company.
Reference:
Emily Badger, (2015) "Ford Is Experimenting With Its Own Uber-Like App — And A Vehicle To Go With It". Washington Post. Retrieved 15 May 2016, from https://www.washingtonpost.com/news/wonk/wp/2015/02/25/ford-is-experimenting-with-its-own-uber-like-app-and-a-vehicle-to-go-with-it/.
