Swot_Analysis

Swot Analysis of Ford Motor Company Strengths of Ford – Brand Image- Ford brand is well-known in automobile industry. Its brand image is well know in the global markets due to huge marketing & advertising. Online Marketing capability - Ford is one of the well-known automobile company which is providing the online consumer selection of cars through its website. In online the consumer is allowed to customize the engine, colour, interiors and exteriors. More consumer choices – Ford is one of the automobile company which is providing the consumer more variety of cars and commercial vehicles. Ford is manufacturing fallowing kind of vehicles. Cars Commercial Vehicles (Jeeps, Vans, & Trucks) Heavy Vehicles. Operations and distribution efficiency - Ford is the rich in its operations and distribution because it is operating its business more than 30 countries and it enhances its manufacturing process more than ninety plants. Relations with high profile companies - Ford Company is maintaining the relations with high profiled companies like Suzuki and Isuzu Motors Company to develop qualitative vehicles and in the part to technological aspect for motor company is maintaining relation with Toyota and Honda motor services. Employee are assert - Ford motor car company recruits a qualified and skilled employees in all its functions. Ford will maintain good relation with the employees by paying them betterwages in automobile industry. Ford is more concerned about the working environment andsafety aspects of the employees. Weakness of Ford – Sales Decline -The sales figure of the ford company was declined from the year 2008 to 2009 due to global recession in the world financial market. Recession is one of the major factor for decline of sales and one more important factor is ford will manufacture the standard cars which are not able to cope up with current market automobiles. Huge unfunded pensions and other obligations -Fordis one of the automobile company which takes more responsibilities in the health and safety of the employee. Ford invests more money on maintaining a good working environment. Low productivity -Ford expanded its business operations in diversified geographical areas, so management is missingfocus on some lines performance and it influence the ford to cause the low productivity. Weakening operations in North America – In the North America part ford operations has been declined due to the huge competitors like GM, Toyota etc. The revenue of Ford was declined by 2.4%. Opportunities of Ford – Production of the fuel efficient cars – At present ford is producing the cars with low mileage and pick up. Ford is having a great opportunity to produce fuel efficient cars andcommercial vehicles. The automobile industry is having one more fuel efficient types like,cars which can run on renewable energies like solar power and bio fuels. Production of Hybrid Vehicles -Ford had one more option in designing the cars and commercial vehicles based on electric engines. If the cars are designed based on electricity engines the consumers will show more interest to buy the cars, the reason is the car maintenance charge will low when the car is run on electricity. Opportunities in India and China markets-Ford is having the market opportunities in India and china countries because two countries are having huge geographical market andpopulation. The most of the people in these two countries are more interested to own a fourwheeler for their family. That is the reason ford fiesta is a most successful car in these twomarkets. Threats to ford- Price Rise in raw material prices – Raw material prices like hard steel and rolling steel cost will influence the margin price of the car.As a whole it will influence the profit margin of the ford because of low margin price. Rapid growth of competitors -Ford growth and development may effected by rapid growth in no of competitors in the automobile industry. From the beginning America demanded automobile industry. Ford’s main competitors are General motors, Toyota, Honda, BMW, etc. Less Capital spending - Ford is spending low on its operations and research development activities, when compared to its competitors. The competitors are spending huge amount on R&D programmes. Porters Five Force Analysis - Source – The Business Environment by Worthington & Britton, Sixth edition Threat of new entrants – Threat of new entrants will be low for the ford because the ford is one of automobile which is providing the best services withlow cost ofprice, ford providescustomers to choose their vehicles. Ford is having cost advantage because it is providing thevehicles with low cost when compared to the other competitors.