Abstract

The case looks at the issues relating to Ford’s e-business strategy. It talks about how Ford sought to transform itself from an ‘old economy’ firm to a ‘new economy’ firm using the Internet to further its objectives. During 1999, Ford discovered the potential of web technologies and sought to leverage its competencies using the Internet. As a part of the strategy, it partnered with few other automakers to form ‘Covisint’ - an online market place that linked its members to more than 30000 suppliers of components. In addition to this it also took special initiatives to build excellent relationships with customers, dealers and suppliers as this held the key to survival. It floated an e-CRM company, and gave its employees a PC and other hardware for a nominal cost, which were all part of its e-business initiatives.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Benefits and implications of e-commerce initiatives.

Keywords

Ford, e-business, strategy, old economy, new economy, Internet, 1999, web technologies, leverage, automakers, Covisint, online market, 30000, components, excellent relationships, customers, dealers, suppliers, e-CRM, PC, nominal cost