Ford vs Detroit Electric Car Case Study Example | Topics and Well Written Essays - 1000 words

Ford vs Detroit galvanizing Car - Case Study ExampleWhile Detroit Electric Company capitalizes on its technological innovations as its core competitive advantage in the market, the development of an electric car by Ford distillery remains near, yet so far a realization. Since 1966, according to Flint the Forbes magazine editor, Ford has been stressing on the be after to develop a viable electric car in 5 to 10 years. By 2009, Ford believed that this intake could be realized by 2010, but it still remains a plan. The bankruptcy to meet these plans has been dampened by the advanced innovations and technology In Detroit Electric, who announced laid down plans to start whopping sale manufacturing and selling of electric cars in the first quarter of 2010, with these sales expected to hit 270,000 vehicles by 2012. The lithium battery technology is the latest development towards realization of this goal (Brown, 2012). Q1. The organization body structure employ in Detroit Electric cars is the decentralized organizational structure that leads to differentiation in products and specialization. Rather than produce their vehicles, Detroit Electronics source their vehicles from specialized manufactures their progress to being to impart the finished vehicles with finishes that identify the caller-out (LaMonica, 2009). Detroit has therefore assumed the structure of a virtual corporation where engines are manufactured and fitted by Proton in Malaysia, while the company salutary modifies the cars to distinguish the style and to offer an identity to these vehicles. Outsourcing to specialized manufactures, and driventling on finishing and aesthetic work ensures specialization, and the company does not produce to meet the cost required in producing these vehicles. Q2. The differing organization structure is to bear down for Fords inability to produce an electric vehicle, when Detroit Electric has been able to make true its dream of an electric vehicle within four year s of its founding. Contract manufacturing in Detroit ensures the company does not have to mind about the required technological facilities to meet this goal, as these costs are passed on to the contractor, Proton in this case (Lamonica, 2009). Instead of concentrating in designing and making the facilities to produce these vehicles, Detroit Electric has to concentrate on deepen research and development strategies to improve its technological advancement in vehicle manufacturing. This is portrayed by the entrance of lithium battery, and the rapid response to produce these electric cars. On the other hand, Ford has to set deflection massive budgets to modify and advance their plants before launching any electric car manufacturing program. For example, Ford has set aside $ 450 million in Michigan as part of the companys aggressive plan in advancing an electric vehicle program (Media Ford, 2011). Ford has been delaying these plans due to economic crisis and stiff competition, which h as eaten into the companys profitability. The company felt stinging effects as in the 2008 global economic meltdown. This has been sanitary observed in the case of the SUV models that marked about 55% of total sales before the crisis. These sales declined sharply resulting to decreased profitability (Richard & Henry, 2003). Specialization has been the strength behind Detroit Electric success. Q. 3 Cooperation of international companies is largely affected by economic dynamics in the market. For example, the Euro crisis may