Ford Motor Company
I. Executive Summary The Ford Motor Company has been facing a steady decline in market share for approximately the past twelve years. This decline is largely attributable to their reputation for building poor quality vehicles that break down easily, and rising gas prices reducing demand for large trucks and SUVs, which is Ford’s main source of sales. Ford has already taken measures in response to this slump by introducing new car models such as the Fusion, as well as attempting to make their mark in the new crossover SUV market with the Ford Edge. However, many would argue that this is just too little, too late. While the Edge does lack certain qualities with respect to its competitors, it also comes with a more affordable price tag. The biggest weakness for the Edge is the fact that it is simply under marketed. The best way to fix this problem is to launch an aggressive ad campaign for the Edge, focusing on the balance of practicality and fuel efficiency that comes with owning Ford’s new crossover.
II. Problem Statement Ford Motor Company has been losing market share in North America for over a decade. In response to this crisis, they introduced the Ford Edge to the crossover market, but it is not doing nearly as well as it should be in the demanding market for fuel-efficient vehicles.
III. SWOT Analysis (Appendix A)
External Analysis
Opportunities
Ford is somewhat lacking in the way of opportunities. While there are certain opportunities facing the entire auto industry, none of those have been left unexploited. A key opportunity for the Edge however is the fact that gas prices have been steadily rising, and will likely continue to do so. This creates a great deal of demand for crossovers from those requiring the practicality of an SUV, but who wish to pay less for gas.
Threats To add to the misfortune of having few opportunities, Ford also has a good deal of threats standing in their way. One of the biggest threats facing
II. Problem Statement Ford Motor Company has been losing market share in North America for over a decade. In response to this crisis, they introduced the Ford Edge to the crossover market, but it is not doing nearly as well as it should be in the demanding market for fuel-efficient vehicles.
III. SWOT Analysis (Appendix A)
External Analysis
Opportunities
Ford is somewhat lacking in the way of opportunities. While there are certain opportunities facing the entire auto industry, none of those have been left unexploited. A key opportunity for the Edge however is the fact that gas prices have been steadily rising, and will likely continue to do so. This creates a great deal of demand for crossovers from those requiring the practicality of an SUV, but who wish to pay less for gas.
Threats To add to the misfortune of having few opportunities, Ford also has a good deal of threats standing in their way. One of the biggest threats facing
References: 1. Bunkley, Nick. (2007). “Ford Edge Blunts Sales Decline”. International Herald Tribune: Business. Viewed 10/11/07, http://www.iht.com/articles/2007/05/02/business/edge.php 2. Associated Press. (2006) “GM Sales Decline Sharply in June”. Viewed 10/11/07, http://www.msnbc.msn.com/id/13687071/ 3. Ford Motor Company of Canada, Limited. (2006). “Edge Overview”. Viewed, 23/11/07, http://ford.ca/main/default.asp?language=en§ion=1&source=&sVehCategory=FordSUVs&model=Edge 4. United States Department of Energy. (2007). Viewed 13/11/07, http://www.fueleconomy.gov/ 5. Alexander, Sheryll. (2007). “Top Family Cars”. AOL autos. Viewed 26/11/07, http://autos.aol.com/article/general/v2/_a/top-family-cars/20070823222609990001 6. CBC News. (2007). “Ford exits minivan market to focus on crossover vehicles”. CBC News. Viewed 10/11/07, http://www.cbc.ca/money/story/2007/01/03/fordminivan.html 7. United States Department of Labor. (2007). “American Time Use Survey Summary”. United States Department of Labor. Viewed 26/11/07, http://www.bls.gov/news.release/atus.nr0.htm