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 (Hars, 2016). Further, the costs associated with burning fossil fuels are likely to escalate, in particular the potential for carbon taxes, consumer rejection of burning carbon and a gradual shift in the first half of the 21st century towards different models of transportation. Ford will need to examine the long-run impacts of these trends to its business, and seek to find the right long-run strategy to build around for the future.
Scenario
Ford Motor Company is a leading producer of automobiles. Operating globally, Ford has one of the world's most widely-recognized brands. However, the company has enjoyed much of its recent success with larger vehicles such as its pickup trucks and crossovers (Morningstar, 2016), and it is an industry laggard when it comes to electric vehicles and driverless technology. Ford needs to examine what its role will be in the automobile industry in the 21st century, and start taking steps to position itself in the desired role. Part of that requires determining how sustainable their current model actually is.
Analysis
Ford has a number of strengths on which to draw. It operates globally, producing and selling in dozens of countries. Its 7.6% global market share ranks it fourth in the world in a fragmented market (Statista, 2015). The company has one of the world's most powerful brands, ranked 38th in the world by Interbrand, 5th among automakers (Interbrand, 2015). These strengths derive...
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 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
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 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
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: eRoom enables Ford to drive into new technology) II. Marketing Strategies: Target Market: Target Market 1 This market consists of institutional sales with large manufacturers or independent manufacturing divisions of corporations having a huge network of broker, dealer or distributor network. For these categories the ideal vehicle suited will be the sports wagon and minivans. Only last January, the managers publicized the Ford Fairline concept at the Detroit Auto
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