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Supply Chain in a "Brick and Mortar"' Environment

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What is the supply chain for the business area of Ford in a "brick and mortar" environment. How can the supply chain be modified from the "brick and mortar" by three websites: Ford, Carmax, Cars direct.

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Solution Summary

This solution includes explanations of the supply chain and online presence of e-business websites.

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Ford Motor Company is home to the oldest production systems of the industrial age (marked by Henry Ford's invention of the assembly line). Since incorporation, the company has strategically concentrated on automotive engineering and manufacturing. Its sales function is outsourced to licensed and conglomerate dealers; and Ford Motor Credit exists as a separate entity focusing on consumer financing. For its first 70 years Ford Motor Company made little changes to its traditional, "brick-and-mortar" chain of supply.
Starting in the 1970's, however, Ford faced new competition from foreign firms. Up to this point the major domestic auto manufacturers - Ford, General Motors, and Chrysler, operated in near oligopoly. This new competition, however, caused Ford and other companies to begin to reevaluate their strategies with the aim of enhancing efficiency. While the supply chain would remain technically "brick-and-mortar" for the next 20 years, Ford began to adopt centralized processes which would be the setting in which the e-business supply chain catalyst was able to take place ...

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