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Essay / Mazda Motors Case Analysis - 1913
Case Overview: It all started in 1979. Mazda, a relatively small player in the global automobile market at the time, was looking for a strong international partner to achieve the transformation. from the status of a small niche player to that of a major global automobile manufacturer. At the same time, Ford was also looking for a partner to help it design and produce smaller automobiles. Both companies agreed that they were logical partners. Ford is a large American company and Mazda is based in Japan. Mazda sold 25 percent of its shares to Ford and a collaboration agreement began. This case describes the successes of collaboration in the automobile industry between Japanese and American companies, although they are obviously competitors. A significant success resulting from the alliance concerns the Ford probe and the Mazda MX-6. There has been an exchange of resources and capabilities between the two companies. Mazda designers design the basic platform, engine and transmission of the cars. Mazda then designed the exterior of the MX-6 and Ford did the same for the probe. Finally, both cars are assembled in a factory owned by both companies. The Ford Escort was another successful offspring of the alliance where, once again, Mazda engineers designed the car and Ford manufactured it. But the alliance was not without points. Mazda Navaho is one of the descendants of the alliance which was basically built on the popular Ford Explorer product and built by Ford manufacturers. Ford took the opposite step by refusing to supply Japanese partners with Navaho production in order to continue production of its own product line. Partner Mazda also fell into financial difficulty and Ford gained effective management control of Mazda and took bold steps that ultimately went against the collaboration. to face the competitive situation. It refers to the combination of different businesses for their mutual benefits.Different types of alliance: LicenseFranchiseManagement contractTurnkey operationShared ownershipStock alliance. The strategic alliance was approached by the sale of Mazda's 25% stake to the car manufacturer Ford. It was therefore a strategic alliance and shared ownership. The shared ownership alliance is actually a special form of joint venture. Query 2: Before the alliance, the two companies were in completely different markets and they were also in different countries, but the industry was the same type. Both companies were aware of their future project and lacked.