Mazda Motor Corporation: Surviving by Partnering with the Giants
(8 pages of text)
Case (Pub Mat)
For 30 years, Mazda Motor Corporation (Mazda) partnered with Ford Motor Company (Ford), helping Ford in small-car engineering and lean manufacturing in exchange for finance and marketing know-how; however, this alliance was terminated due to the global financial crisis in 2008. In 2015, Mazda entered into another long-term partnership to share technologies and cope with cost pressures—this time with Toyota Motor Corporation (Toyota). According to its 2016 Structural Reform Plan, Mazda aimed to achieve a global sales volume of 1.65 million units, an operating income ratio of at least 7 per cent, an equity ratio of at least 45 per cent, and a dividend payout ratio of at least 20 per cent by 2019. Given the highly competitive domestic and global automotive markets, to what extent could the partnership with Toyota and the Structural Reform Plan allow Mazda to achieve these goals? Would Mazda need to make any changes to its competitive strategies to keep the company driving forward?
This case is intended for senior undergraduate- and graduate-level business students in class discussions on acquisition, collaboration, and restructuring strategies; competitive strategies; industry analysis; and Japanese-style management. The case discusses several competitive strategies for survival in the automotive industry, where established firms concurrently build their competitive advantages on economies of scale and innovation. After completion of the case, students will be able to
- examine the evolution of an industry and forecast new industry trends;
- understand how a small firm may compete with large firms in consolidated industries;
- determine and implement an alliance strategy; and
- determine and implement a turnaround strategy.
Transportation and Warehousing
Japan, Large, 2016
$5.30 CAD / $5.00 USD Printed Copy
$4.50 CAD / $4.25 USD Permissions
$4.50 CAD / $4.25 USD Digital Download