Market Share and Strategic Planning Process, Research Paper Example

We can define the term market share as the command that a company has in terms of price setting, client share, and monopoly power within the industry that the company operates. Many companies invest a lot in marketing strategies such as advertisement, promotions, offers, and other forms of incentives that can lure the public and consumers in demanding their products and services. Market share plays a massive role in determining the marketing strategies that a company employs. For instance, a company with a massive market share will employ different marketing tactics from the ones that a company with a relatively low market share would employ. Thus, for a company to know the marketing strategies that suit its pursuit in the business environment, it must research and find out its command in the target market (Lamoreaux, Raff, & Temin, 1999).

We will examine one of the largest companies in the motor industry, its market share, and how the knowledge of the company’s market share has affected its decisions in the marketing strategies that the company employs.

The ford motor company is a primary company in the motor vehicle industry, which has specialized in the provision and manufacture of cars, trucks, and several other forms of locomotives to the entire world.

With knowledge on the market share data of ford motor company, the management of the company can examine its strengths, weaknesses and opportunities in the motor vehicle industry, which is essential in its strategic management process (Wentland, 2008).

Strengths of Ford Motor Company

A strong portfolio of quality products

Ford Company has developed its identity as one of the companies that have high quality expertise in terms of technical ability. The company has invested a lot in ensuring the provision of high quality locomotives that assure consumers maximum security and safety, and durability of the locomotives. For example, the ford mustang, a product of the ford company, was the first car to earn the highest ratings from the US National Highway and Safety Administration, as the car that is most safe to the consumers. This has played a massive role in developing and maintaining a high market share for the company in the locomotive industry.

Another factor that has contributed to the massive market share of the ford motor company is its strong leadership program. The company has invested in a localization program, where it has ensured availability of its products to the grassroots level, especially in the rural areas. The company reduced its network from the initial 4400 to 3430 by the end of the year 2010. The management ensured that the newly branded facilities were in the right locations and that they satisfied the current and future demand (Moyer, 2012).

Weaknesses of the Ford Motor Company

The company experienced periods of fluctuations in its revenue levels because of competition from new players in the motor vehicle industry and fluctuating world market prices. The company also had cases of product recall from its consumers. Some of the locomotive products were faulty or did not meet the standards of the consumers (Naomi R. Lamoreaux, 1999).

Impact on the Market Mix Decisions

When a company has a full detail of its market share, it can have a basis of determining proportions of the four Ps of the marketing mix. For instance, the company will know the level of pricing that can make it compete well and favorably in the industry. Similarly, the company will know how to tailor make its products suit the demands of the target consumers. For instance, a company with smaller market share must invest in market research to know the tastes of the consumers. The company will also be able to know which channels are suitable for distributing its products to its target markets (Wentland, 2008).

References

Moyer, R. C. (2012). Contemporary Financial Management. New York: Cengage Learning.

Lamoreaux, N. R., Raff, D. M. & Temin, P. (1999). Learning by Doing in Markets, Firms, and Countries. Chicago: University of Chicago Press.

Wentland, K. (2008). Ford Flexes Back. Michigan: Strategic Book Publishing .