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Fords strategy was to produce their own parts but in 1950 this strategy became too expensive as it was costing more comparing to buying from suppliers. There wasn’t much completion till 1980. Prior to 1980s, Ford did not find much competition.
The competition became unreceptive when Japanese carmakers entered into the market with different approach to capture customers. They gained competitive advantage for bringing new technology into American car industry. After realising the situation Ford made an effort to compete in business by establishing keiretsu-type arrangements, forged links with rivals by owing 25% of Mazda, establishing strategic alliances to share technology and design...
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