1 / 12

Vertical Integration Study: Ford Motor Company

Vertical Integration Study: Ford Motor Company. Marketing II Mr. Yates. Brief history of Ford Motor Company. The  Ford Motor Company  is an American multinational corporation based in Dearborn, Michigan, a suburb of Detroit.

irma
Download Presentation

Vertical Integration Study: Ford Motor Company

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Vertical Integration Study:Ford Motor Company Marketing II Mr. Yates

  2. Brief history of Ford Motor Company • The Ford Motor Company is an American multinational corporation based in Dearborn, Michigan, a suburb of Detroit. • The automaker was founded by Henry Ford and incorporated on June 16, 1903. In addition to the Ford, Lincoln, and Mercury brands.

  3. Ford’s brands/relationships continued • Ford also owns a small stake in Mazda in Japan and Aston Martin in the UK. • Ford's former UK subsidiaries Jaguar and Land Rover were sold to Tata Motors of India in March 2008. • In 2010 Ford sold Volvo to Geely Automobile. • Ford will discontinue the Mercury brand at the end of 2010.

  4. Backward or Forward Integration? • Fairly balanced actually… • Ford owns many of it’s means of production, and distribution / retail networks

  5. Backward Integration of Ford • Ford tired of being held up by suppliers as he scaled up production of cars with his assembly line and began to vertically integrate over the course of the 20’s. • He moved his plant nearer to resources in preparation of this move (from Highland Park to Rouge River MI)

  6. Backward Integration Specifics • His own railroad • Control of 16 coal mines (carbon from coal + iron makes steel) • 700,000 acres of timberland • Built a sawmill • Acquired a fleet of Great Lakes freighters to bring ore from his Lake Superior mines • And a glassworks

  7. A Day in 1927…(integration example) • At 8 o'clock, just enough ore for the day would arrive on a Ford freighter from Ford-owned mines and would be transferred to the blast furnaces and transformed into steel with heat supplied by coal from Ford mines in Kentucky. • It would continue on through the foundry molds and stamping mills and exactly 28 hours after arrival as ore would emerge as a finished automobile.

  8. Integrated Systems • Similar systems handled lumber for floorboards, rubber for tires, and so on. • At the height of its success Ford’s holdings stretched from the iron mines of northern Michigan to the jungles of Brazil, and it operated in 33 countries around the globe. • Most remarkably, not one cent had been borrowed to pay for any of it. It was all built out of profits from the Model T.

  9. Other integration efforts • Ford experimented with a commercial rubber plantation in the Amazon jungle • Ford also built aircraft and aircraft engines (during the world wars) which might have been used to ship materials

  10. Interesting ventures… • Ford long had an interest in plastics developed from agricultural products, especially soybeans. He cultivated a relationship with George Washington Carver for this purpose. • Soybean-based plastics were already being used in Ford automobiles throughout the 1930s in plastic parts such as car horns, foam, in paint, etc. • This project culminated in 1942, when Ford patented an automobile made almost entirely of plastic, attached to a tubular welded frame. • It weighed 30% less than a steel car and was said to be able to withstand blows ten times greater than could steel. • Furthermore, it ran on grain alcohol (ethanol) instead of gasoline.

  11. Joint Ventures • In 1912, Ford cooperated with Fiat to launch the first Italian automotive assembly plants • (After building successful plants in England and Canada).

More Related