SWOT Analysis Paper of Ford Motor Company
Ford Motor Company is one of the largest automotive manufacturers in the world. It manufactures and distributes automobiles across six continents but primarily operates in United States and Europe. Its known brands include Ford, Lincoln, Volvo, and Mercury. SWOT analysis for the company is as follows:
The strong brand name of Ford has continuously provides the company with strong competitive advantage in its international market. Ford is also recognized for its strong engineering, research and development capabilities directed towards performance improvement, greater customer satisfaction, and development of new and innovative products. Lastly, Ford is able to take advantage of diversified product portfolio as this allows the company to maintain steady revenue and cross-selling opportunities.
Despite these strengths, Ford is also characterized by some weaknesses that imply difficulties for the company. For one, Ford has announced recalls of its most popular models because of manufacturing and design problems. Product recalls and scrutiny for pedal acceleration problems imply decline in product quality; thus negatively affecting confidence of consumers and company sales. Moreover, the company has also experienced decline in its cash flows. Poor cash position indicates poor cost management and faulty decision-making by the management. If this continues, the availability of resources to pursue growth plans will be inadequate.
Nonetheless, Ford and automotive industry as a whole is gearing towards promising opportunities. One, the Asia Pacific market is expected to perform strongly because of dramatic boom of Indian and Chinese market and Ford is set to utilize this opportunity by extending increased operational emphasis in these areas. Second, the global truck manufacturing market is experiencing strong demands and Ford has established significant presence in the global truck manufacturing industry. Lastly, global problems on climate change serve as key drivers for the increased demands for hybrid electric vehicles (HEV).
The greatest threat for Ford remains to be the intense price competition. The overcapacity of industry players has forced manufacturers to offer market incentives like financing and price rebates to maintain or increase market share. Moreover, the cost to comply to increasingly stringent regulations could also have negative impacts on the company’s financial conditions and operations.
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