Question

Construct a SPACE matrix for Ford Motor Company and explain each factor. Prepare tables and charts.

Answer 1

Ford motor company popularly known as ford is an American multinational automaker which sells automobiles and commercial vehicles under the brand ford. The company sells a wide range of automobiles under the ford mark worldwide. The line of heavy trucks made by Ford for the North American market include ford F series, ford N series, ford L series, ford C series, CF series, ford H series, ford W series, frd CL series. The company's mission aims to benefit the target customers through mobility. The products are maintained for addressing mobility needs and issues in the transportation. The company's vision focuses on achieving a higher performance in the industry by considering competition. The company strategies include:

• To accelerate the development of new products which the customers want and provide value to them.
• Aggressive restructuring to operate profitably at the current demand and to change the model mix.
• To work together effectively as a team.
• To finance the plan and to improve the balance sheet.

Current market condition

The company is known for the leadership it is having in innovation in the automobile industry. Energy efficient efforts, safety features and advancements in the technology are the factors which made ford to get a place in the market. The constant effort into driving community through the company fund and community services is the way ford displays its involvement and the values for a safe environment for community to live in. The market helps the company to receive profit for years and now it is the time for the company to have new markets.

SWOT Analysis of the company

Strength powerful in the market sound financial performance a strong brand recognition global market	Weakness cost structure is high europe operations grow unprofitably low contact of business in some areas
Opportunities strategic partnerships newer emission standards promote green vehicles	Threats decrease in fuel prices intense competition material prices increases changes in the exchange rates

SPACE Matrix

Space matrix is being used as a management tool for analysing the company. The strategic position and action evaluation matrix or space matrix focusses on formulating the strategies which is related to the competitive position of the company

Financial Strengths Leverage net asset return on equity return on asset net income	Environmental Stability technological changes competitive pressure rate of inflation price elasticity in demand barrier in market entry
Competitive Advantage quality of the product technological know how market share customer loyalty	Industry Strengthen financial stability resources utilization potential profit potential growth

From the above space matrix graph , it is clear that the ford company is having a competitive position in the market place. At this position, the strategy which can be used for the company is about the diversification of the products. The company can thus implement strategies which is needed for enhancing the purchasing power of the customers and promoting strategies inorder to attract the customers.