Ford Motor Company started in Michigan in 1903. They have focused on designing and manufacturing that had been successful, however with increasing competition globally and increase capacity it needs to look at ways to improve profitability. Ford Challenge is to continue to research ways to be viable in the market and industry conditions. Dell Computers had been very successful with their virtual integration. However, since Dell and Ford are different types of industries, computer manufacturing and auto industry respectively, it does not seem right for Ford to implement exactly what Dell has which is “virtual integration model”.
Realizing an urgent need to change their supply chain in order to make it more cost effective and more profitable, what I am thinking is Ford can partially implement and execute the virtual integration direct business model that has been used by Dell should be applied to Ford’s supplier base, distribution system and dealership. Through this model, Ford will use the emerging information technologies as well as new ideas from new technologies of other industries in order to transact with their dealers, suppliers, affiliates and customer. Ford can also boost its sales by providing better customer service and faster communication between dealers, suppliers, affiliates and customers in value chain.
By measuring the performance of this model, Ford should schedule periodical review and evaluation meetings. All improvements along the way should be noted in order to be evaluated. The improvement of customer service and shareholder value should be the main focus of the case. At this time it is hard to know its success or failure, but by effort and investing time it will be of its success in the short term and definitely in the long run.