Verified Document

Ford V. Honda Ford's SWOT Analysis: Strengths Research Paper

Ford v. Honda Ford's SWOT Analysis:

Strengths

Weaknesses

Opportunities

Threats

Brand recognition

Low quality scores (LeBeau, 2011)

Chinese market (Forbes, 2011)

Competitors

Distribution

Management retirements (Muller, 2012)

Hybrids/fuel efficiency

Weak economic conditions

New Products

Pensions/legacy costs

US recovery?

Rising costs

Renewed consumer interest

Distributor issues?

Other BRICS

High gas prices

Mulally is a good leader

No global mfg platform

Smaller vehicles

US competitors are backed by gov't

In order for Ford to address these issues, the following strategic concepts should be implemented. The company needs to improve its innovation pipeline, but it also needs to improve its production practices so that quality is restored. The customers want Ford to succeed, but poor quality reviews are going to hurt the company's turnaround. High gas prices and rising costs elsewhere may wipe out the benefits of a U.S. recovery, so Ford needs to shift its focus to emerging market growth. That said, if it can adapt to new technologies like hybrids, there is room for success. The company's brand, however, does remain strong, especially for market-leading products like the F-150.

Mulally is a good leader for Ford, but in order to ensure that these strategies are implemented effectively, he needs to replace the retiring talent with people just...

More money needs to go to innovation and less to pensions and other legacy costs, something that will challenge the company's financial management and its union relations. These strategies are broad-based, so market share, revenue and profit are all good measures. New product introductions is another one that should be utilized as well, since that is part of the company's recover strategy.
The SWOT for Honda is as follows:

Strengths

Weaknesses

Opportunities

Threats

Brand recognition

Mature/stagnant?

High growth BRICs, especially China (Yan & Durfee, 2012)

Competition

High quality

Japanese supply chain (earthquakes, tsunamis)

New models (Yan & Durfee, 2012)

Global growth is weak (Forbes, 2011)

Good product lineup

Locked into traditional management style

Toyota has faltered

Rising costs (Forbes, 2011)

Efficient production

Low sales

Luxury cars (Acura) in emerging markets (Yan & Durfee, 2012)

Weak home market

Good global distribution

Stagnant equity growth

US recovery?

Tsunamis and earthquakes disrupt supply chain

For Honda to succeed it needs to focus on growth markets, since the U.S. market is uncertain and the Japanese market is weak. The company needs to diversify its production as well, given how much damage the earthquake/tsunami did to its supply chain. Despite reduced sales and stagnant equity growth, Honda is…

Sources used in this document:
Works Cited:

Forbes. (2011). Ford hits $14 with China growth, fuel efficiency focus. Forbes. Retrieved April 15, 2012 from http://www.forbes.com/sites/greatspeculations/2011/11/29/ford-hits-14-with-china-growth-fuel-efficiency-focus/

Forbes. (2011). Honda recovery rolling slowly with weak global growth. Forbes. Retrieved April 15, 2012 from http://www.forbes.com/sites/greatspeculations/2011/08/22/honda-recovery-rolling-slowly-with-weak-global-growth/

LeBeau, P. (2011). Ford quality tumbles in JD Power survey. CNBC. Retrieved April 15, 2012 from http://www.cnbc.com/id/43511239/Ford_Quality_Tumbles_in_J_D_Power_Survey

Muller, J. (2012). Key leaders in Ford turnaround to retire; Mulally not going anywhere. Forbes. Retrieved April 15, 2012 from http://www.forbes.com/sites/joannmuller/2012/02/09/key-leaders-in-ford-turnaround-to-retire-mulally-not-going-anywhere/
Yan, F. & Durfee, D. (2012). Honda eyes new models, strong growth in China. Reuters. Retrieved April 15, 2012 from http://www.reuters.com/article/2012/04/10/us-honda-china-idUSBRE8390EU20120410
Cite this Document:
Copy Bibliography Citation

Related Documents

Ford Motor Company, Sample Marketing
Words: 3441 Length: 9 Document Type: Term Paper

(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

Chrysler Group LLC SWOT Analysis
Words: 1321 Length: 4 Document Type: Research Proposal

The EVMI initiative will push the supply chain even more rigorously, requiring even greater financial investment. EVMI as a technology is an opportunity; the challenge for Chrysler is to transform their supply chain into a support infrastructure that can fully make this opportunity realizable. Additional opportunities for the company include the continual improvement of their quality management and compliance systems so they will be able to exceed CAFE requirement

Ford Mustang Marketing Research I Spoke to
Words: 1213 Length: 4 Document Type: SWOT

Ford Mustang Marketing Research I spoke to five male car owners in their 20s. Three of them had purchased a vehicle in the past two years, the other two had their cars for longer. None of them had purchased a Mustang, but one had a Camaro. The four that owned other types of cars indicated that they did not want a pony car for a number of different reasons, from gas prices

Honda Motor Company Is One
Words: 1239 Length: 4 Document Type: SWOT

Acura was launched in the mid 1980s, and it was the first Japanese produced luxury car, however it lacked many of the features that customers were looking for in high end vehicles and Acura went through almost five years of net losses before Honda finally figured out their design and distribution methods. Honda depends too much on their ingenuity and ability to adjust once a product enters the market,

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'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

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