Causes of Loss Competitivenesses of the Company Ford in the Russian Federation
https://doi.org/10.21686/2410-7395-2019-4-171-180
Abstract
The departure of large foreign car manufacturers from the Russian market negatively affects all partners and interested parties car dealers, suppliers, employees, buyers and fans of brands of departed companies. This departure became even more painful for Ford itself, which leaves the domestic market with a loss of $ 500 million, which is 14% of the total annual profit of Ford Motor Co. in 2018 This sad event was caused by a number of circumstances: the consequences of the global financial crisis, the devaluation of the national currency, the decline in sales in the Russian car market, company errors in pricing, marketing policies and updating the model range, in assessing the prospects for marketing products and creating excess production capacities, as well as refusal to independently manage Russian business and the choice for this Russian partner in a joint venture. A close study of the reasons that forced the recent leader of the Russian car market to Ford to close its car factories and stop selling them in Russia is presented in the article. Particular attention is paid to the development of the domestic car market, the development of effective competition strategies in the face of falling household incomes and rising product prices, state support for the domestic auto industry, as well as the specifics of creating joint ventures in the Russian Federation and assessing the resource capabilities of joint venture partners.
About the Author
Alexander V. ButovRussian Federation
PhD, Assistant Professor of the Department for Organization-Management Innovations of the PRUE.
36 Stremyanny Lane, Moscow, 117997, Russian Federation.
References
1. Butov A. V. Sistema berezhlivogo proizvodstva i mentalnye metody upravleniya kompanii «Toyota» [The System of Lean Production and Mental Management Methods of Toyota], Problemy i perspektivy razvitiya promyshlennosti Rossii, sbornik materialov 4-y Mezhdunarodnoy nauchnorakticheskoy konferentsii [Problems and Prospects of Development of Industry in Russia: Collection of Materials of the 4th International Scientific and Practical Conference]. Moscow, KnoRus, 2019, pp. 116–120. (In Russ.).
2. Butov A. V. Chetvertaya promyshlennaya revolyutsiya i ee vliyanie na razvitie mirovoy ekonomiki [The Fourth Industrial Revolution and Its Impact on the World Economy] Problemy i perspektivy razvitiya promyshlennosti Rossii, sbornik materialov 4-y Mezhdunarodnoy nauchnorakticheskoy konferentsii [Problems and Prospects of Development of Industry in Russia: Collection of Materials of the 4th International Scientific and Practical Conference]. Moscow, KnoRus, 2019, pp. 174–179. (In Russ.).
3. Voytsekhovskaya Ya., Nikitina O. Legkie gruzoviki vyekhali bez sprosa [Light Trucks Left without Demand], Kommersant, 2019, No. 143. (In Russ.).
4. Voytsekhovskaya Ya., Nikitina O., Kalashnikov S. Strana vstaet s koles. Avtokontserny mogut sokratit proizvodstvo [The Country Rises from the Wheels. Automakers May Cut Production], Kommersant, 2019, No. 122. (In Russ.).
5. Grammatchikov A. Mirovoy avtorynok gotovitsya k voyne [The World Car Market is Preparing for War], Kommersant. Prilozheniya: Avto. Kommercheskiy transport, 2019, No. 158. (In Russ.).
6. Grammatchikov A. Podpiska o vyezde [Check out subscription], Kommersant. Prilozheniya: Avto. Kommercheskiy transport, 2019, No. 158. (In Russ.).
7. Komarova V., Gordeev V. Pochemu eksperty predrekli avtorynku v Rossii trudnyy god [Why Experts Predicted the Car Market in Russia a difficult year]. (In Russ.). Available at: https://www.rbc.ru/business/14/01/2019/ь5c3c56139a79471f6e0fbcec#ws
8. Nagaev K., Dzyadko T. SMI soobshchili o novom podorozhanii avtomobiley iz-za utilsbora [Media Reported a New Rise in the Price of Cars Due to Scrap]. (In Russ.). Available at: https://www.rbc.ru/business/10/09/2019/5d7705e59a79477a569b96df
9. Nikitina O. «Gazeli» buksuyut bez gospodderzhki [Gazelles slip without State Support], Kommersant, 2019, No. 100. (In Russ.).
10. Nikitina O. Ford doplatit «Sollers» za uchastie [Ford will Pay «Sollers» for Participation], Kommersant, 2019, No. 111. (In Russ.).
11. Nikitina O. Pochemu pal Ford Ross [Why Fort Ross fell], Kommersant, 2019, No. 70. (In Russ.).
12. Perova A., Vodolazov V., Nikitina O. S avtorynka kakoy spros [With the Car Market what demand], Kommersant, 2018, No. 238. (In Russ.).
13. Perova A., Vodolazov V., Nikitina O. Statistiku avtorynka prochli po skladam [Statistics of the Car Market Read the Warehouses], Kommersant, 2019. – № 104. (In Russ.).
14. Sloun A. Moi gody v General Motors [My years in General Motors]. – Moscow, Eksmo, 2018. (In Russ.).
15. Ford G. Moya zhizn, moi dostizheniya [My Life, My Achievements]. – Moscow, AST, 2018. (In Russ.).
16. Shvetsov V. Dazhe krupnyy biznes sidit v okope [Even Big Business is in the Trenches], Kommersant, 2019, No. 125. (In Russ.).
Review
For citations:
Butov A.V. Causes of Loss Competitivenesses of the Company Ford in the Russian Federation. International Trade and Trade Policy. 2019;(4):171-180. (In Russ.) https://doi.org/10.21686/2410-7395-2019-4-171-180