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Ford And The World Automobile Essay

1413 words - 6 pages

Business Analysis:
Ford is one of the largest automobile companies in the world that was founded in 1903 by Hennery Ford. Ford has more than 90 plants in more than 23 countries and has more than 174,000 employees around the world. These plants have different tasks such as building transmission, assembly, casting & forging, stamping, and engines. Ford had major financial issues in 2007-2008 and incurred losses of $14.7 billion. This was a tough year for automobile industry where companies like General Motors and Chrysler filed for bankruptcy. However, Ford was able to survive after new management took over and laying off 133,00 employees they expected to breakeven by 2011. However, they ...view middle of the document...

Opportunities:
1- Ford Has an opportunity to enter the “green” market by focusing on producing cars that has less emission and emphasizes this development in their marketing campaigns.
2- Going after other market segments such as younger generation or upper class. Being in a very competitive market and with bad economic condition considering other segments can be very beneficial to Ford especially it has always been associated with middle and working class.
3- Ford has a good brand name in the US but not in the international market. Countries like China and India are growing very fast and they prefer Japanese cars over American. By focusing on these markets Ford has to opportunity to grow and expand.

Threats:
1- the strong competition in the US market is a big threat to Ford. all major car manufacturers have presence in the US. Companies like Toyota, Subaru and Hyundai are popular among US customers and Ford has to compete with the new technologies and safety standards that these companies are know for.
2- Low fuel prices may cause Ford to loose one of the most important competitive advantages which is the Econetic Technology that makes their cars more fuel efficient.
3- Uber and other similar companies have disrupted the transportation industry and made new generation drive less. This could reduce cars sales and makes automobile companies fight over fewer customers.

Industry and Market Analysis:
The Automobile industry is very competitive; the number and the types of the competitors is increasing and varying every day. The strategic change in the structure or within the organization is necessary to be able to survive in this industry. Further the market analysis is very important to understand the trends and buying behaviors of consumers. As compare to the industry, Ford has to bear the high cost of developing new models. The development of Ford F-150 took 5 years; they made this truck from aluminum, which made it lighter and stronger. All these costs have to be paid by high sales volume in a very competitive market. In addition, customers need is to get a cheap product with good quality. However, with the easy access to all cars brand information, customers are doing some kind of cost analysis to make sure that they pay less and get a cars that suit their needs. Therefore, it is very important for the organization to create value to customers at competitive prices. On the other hand, maintaining differentiation to stay ahead of competitors. Also it is very important for the organization to work on business development, due to use of the advanced technology, the market and industry of the automobile is changing rapidly.
Porter Five forces:

Threats of New entrants
The automobile industry is mature and very capital intensive. Therefore, the threat of new entrants is rather low. Ford management is trying to sustain the organization position in the market; they have approximately $3.8 billion cash at...

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