Verified Document

Ford Motor Company External Threats Analysis Essay

Related Topics:

Ford faces many threats. In terms of operational/strategic threats, the company faces intense competition in all of its markets. There is no product or geography where Ford does not face intense competition. This drives down margins and exposes Ford to the possibility of declining sales. The competitors in the industry are innovating at a rate faster than Ford generally is. This creates new and unique competitive threats. Ford is under threat from electric cars and self-driving cars, both of which threaten to completely transform the landscape for personal transportation in the coming years. Thus, Ford's position in the marketplace is very much threatened by new technology, and whatever competitors (old or new) that master the new technologies before Ford can expect to win market share away from Ford.Vehicle emissions standards are occasionally a threat to Ford's business. These are not a major threat today -- but they were in the past when environmental awareness was just beginning. Today, however, tight emissions standards are the norm. California tends to be the leader, so Ford develops the technology for that market far in advance of needing to develop it for any other market.

There are a...

The first one is political. Normally, Ford enjoys a stable political environment where laws are favorable to its interests. Yet, the election of Trump calls that into question, because of the fact that Ford relies heavily on NAFTA, and produces both in Mexico and Canada. Any threat to NAFTA is a threat to Ford (Reuters, 2016). The economy is a source of threat as well. A poorly-managed economy will often face recession, which is a threat to Ford. The company fared badly during the last recession and can ill-afford another one. The social climate is still quite positive for cars, and Ford has a wide range of vehicles. But there is a threat in the sense that many millennials are eschewing car ownership, a trend that if it continues to post-millennials means a long-term decline in U.S. automobile sales. Ford is responding to environmental/social issues by improving efficiency, reducing water use and other environmental initiatives (Ford, 2016).
As noted, there are technological threats. After many years of automobiles having a slow pace of innovation, the industry has become subject to a much faster pace of innovation in recent years, and the reality is that…

Cite this Document:
Copy Bibliography Citation

Related Documents

Ford Motor Company's Current Market Position Company
Words: 2760 Length: 8 Document Type: Essay

Ford Motor Company's Current Market Position Company Overview Quality Issues at Ford Motor Company Human Resources Role Strengths Weaknesses Opportunities Threats Financial Impact of Recalls on Ford Motor Company The Ford Motor Company was founded by Henry Ford in 1903 who along with 11 other investors signed the article of incorporation for the organization. Since then, the Ford name has experienced tremendous growth and has been awarded with substantial significance in the automotive industry. It is one of the

Ford Motor Company Was the Only One
Words: 1820 Length: 7 Document Type: Essay

Ford Motor Company was the only one of America's Big Three automakers to turn down government assistance in 2009. The company wanted to maintain its independence, and believed that the strategies that were in place were going to be sufficient to bring about the financial recovery of the firm. In the past couple of years, the company has revamped its product line, cut its expenses, and sought to take advantage

Ford Motor Company
Words: 2561 Length: 10 Document Type: Term Paper

Ford Motor Company Analysis Ford's History, Development and Growth As Ford Motor Company itself proudly declares, "The dream became a business." The inception of Ford is one of the critical steps in the industrialization of America and the West in general. According to Ford's public relations department, "Ford Motor Company entered the business world on June 16, 1903, when Henry Ford and 11 business associates signed the company's articles of incorporation. With

Ford Motor Company Background and
Words: 5756 Length: 21 Document Type: Thesis

The economic environment is difficult. The United States may finally be showing signs of emerging from recession, but the recent economic difficulty has taken its toll of Ford. Following the short-lived spike provided by the 'cash for clunkers' program, auto sales have slumped again. Many competitors saw sales fall dramatically in the wake of that program. Ford, however, did not suffer as much. While two of its most popular models,

Ford Motor Company SWOT and Strategy
Words: 1362 Length: 4 Document Type: SWOT

Ford Motor Company is facing the challenge of a changing external environment in the long-run. In the short-run, business will continue more or less as usual, but in the medium to long run the company faces technological changes that will make electric cars mainstream, and will introduce driverless cars to the roadways, which will be a transformative development for society, one that might only be a couple of years away

Ford Motor Company Herein Referred to As
Words: 2094 Length: 6 Document Type: SWOT

Ford Motor Company (herein referred to as Ford) has grown from a somewhat obscure automaker to one of the world's most recognized motor vehicle brands. Founded in the year 1919 by Henry Ford, the company's main business remains the production of trucks and cars. However, through some of its subsidiaries, the company also concerns itself with motor vehicle financing. The Ford Motor Company: A Brief Overview of its Vision, Mission

Sign Up for Unlimited Study Help

Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.

Get Started Now