SWOT Analysis of
Ford
As automotive companies are entering
the era of uncertainty, they should look back at what they have
already achieved and plan subsequent actions. There’s reason to
believe that Ford will keep its leading position in the year 2019,
largely due to the company’s capacity to drive through the
obstacles of the modern business terrain.
Strengths
- Strong brand
image: Even those who do not yet own a vehicle have heard
about Ford Motor Company, America’s most valuable brand. For many
people, Ford is synonymous to a real American quality that implies
“doing it right when no one is looking.”
- Global supply
chain: Ford has a model supply chain supporting the
company’s operation around the globe. The company invests heavily
in digitizing its chain and training people, so you get the best
possible offer.
- Innovation:
Innovation is at the heart of all processes at Ford. The company’s
aspiration for innovation is enshrined in One Ford Plan.
Particularly, One Ford Plan 2018 emphasizes “design thinking”
innovative approach to remaking America’s oldest and, probably,
most successful company.
Weaknesses
For Ford, the sky isn’t the limit,
and the company is continually looking for opportunities to
mitigate weaknesses and to transform uncertainties into competitive
advantages:
- Limited scope of production
network: Although Ford operates around the world, its
production network is less extensive than that of competitors. The
company is going through hard times and has recently closed some
plants in Europe and other countries.
- High costs: It’s
also true that Ford vehicles are pretty costly. Therefore, many
customers switch to Toyota that offers the SAME quality but at a
LOWER price.
- Slow innovation:
Customers dream of vehicles that are both speedy and innovative.
But while Ford succeeds in the former, it is lagging behind in the
latter. Toyota, Tesla, and Nissan outperform Ford in terms of
innovation, which can cost the company’s competitiveness.
Opportunities
But, guys, let’s be optimistic and
not forget that many opportunities are open to Ford Motor Co these
days:
- Global expansion:
There’s high and constant need for quality vehicles around the
world; and of course, Ford is among the companies that are capable
of satisfying this need. It’s high time to enhance the company’s
production network and supply chain, and some experts suggest
achieving this aim through market penetration.
- Product
development: Another opportunity for Ford to improve its
standing is through product development. For instance, there’s a
growing demand for electric cars around the world. So, why can’t
Ford offer a super trendy and environmentally friendly model?
- Cost reduction:
While in the thick of price wars, Ford can win competitive edge
through cost reduction. Sounds unrealistic? At all; expansion of
supply chain, outsourcing, and innovation are just some of the
possibilities to maximize opportunities.
Threats
And what about threats?
Unfortunately, they are present:
- Tough competition:
Ford is the fifth largest automobile manufacturer, which means that
there are at least four big competitors and a dozen smaller ones.
Will the company stand the pressure? We’ll see…
- High-tech entries:
Believe it or not but threat comes from…Google and Apple. These
companies engage in the production of driverless vehicles. And who
knows, maybe these “smarties” will outperform the good old Ford one
day.
- Fluctuating
prices: The recent crisis in Venezuela makes us think that
driving a car can be costly because of fluctuating oil prices. I
can bet Ford executives are watching rising prices with a sinking
heart. And for many customers, every rise is a reason to doubt the
advisability of buying a new vehicle.
Ford
Competitors
Our geeks are entirely sure that
Ford will make its way out of the hurdles. But the company should
always keep an eye on competitors like:
- Toyota
- Honda
- Chevrolet
- Nissan
- Hyundai
- General Motors
- Volkswagen
Findings From Ford Annual
Report 2017 and Ford Annual Report 2018
For those of you who think that Ford
is going to decline, our geeks are happy to present indicators
showing the company’s growth and fairly good prospects for the year
2019.
Did you know that…
- Ford Motor annual revenue for 2017
was $156.776B
- There was a 3.28% increase in
revenue in 2017 when compared to 2016
- The company reported the market
capitalization valued at US$35.7B in September 2018
Seems like the good old Ford is in
service and does not plan to slow down in future.
For those of you who like numbers,
calculations, and neat diagrams, it will be a pleasure to look
through Ford’s annual reports. Our geeks also recommend taking a
look at the Ford Sustainability Report 2017/2018 to make sure that
the company is worth every dollar invested in it.
Summing Up
Operating in the automotive industry
is not an easy deal even for such big companies as Ford Motor Co.
However, findings suggest that despite tough competition and other
hurdles, the company has the capacity to stay competitive. So,
there’s reason to believe that our children will enjoy Ford
vehicles as much as we do!