What is Your Strategy For Growth and Sustainability?
Tuesday 16 March 2010
Much can be learned from the collapse of GM and the ongoing growth at Ford. GM kept their strategy of all things to all people through multiple brands even though the market had changed drastically. GMAC, their finance arm for vehicles, jumped into sub-prime loans with both feet. Ford, on the other hand, changed CEOs and executed a change in strategy. First they shed markets and brands they couldn’t support (Jaguar, Aston Martin and soon Volvo), focused on building stronger relationships with target consumer groups they knew they could excel with products and service. Ford Motor Credit refused to chase sub-prime loans and saw it as being all things to all people.
We all know the results – GM’s results are essentially catastrophic while Ford has been hailed for their clear focus on markets and delivering the brand which has given them excellent ROI. So what is your strategy? Are you focused on specific target markets where people network and communicate so you can become part of the network? Or, are you still hoping that doing more of what you used to do, as in marketing to anyone who may have money, will bring you your best year yet?
GM and Ford – a clear picture of the results received based on the choices you make.