Ford Motor Company Swot Analysis
Ford Motor Company SWOT Analysis
Strengths
• Timely acquisition of capital makes Ford more financially sound than the other Big Three carmakers.
• Product line is respected by industry experts and is qualitatively seen to be a step above many of its competitors. Recent surveys place Ford in a tie with Toyota for greatest customer satisfaction, a significant improvement from five years ago.
• Have a global market presence, with worldwide brand recognition and a particularly strong presence in Europe.
• Is perceived to be a thoroughly “American” brand, which helps Ford among certain groups of consumers.
• U.S. market share, after years of decline, has stabilized in recent years.
• The Ford F-series pickup remains the most respected commercial truck available; despite demand shifts, profitability on this line should remain high.
• Ford has had great success, particularly when compared to its competitors, at renegotiating labor contracts with the UAW.
Weaknesses
• Poor Profitability: Ford still loses money on many automobile lines, particularly within the United States.
• Importance of single components source (Visteon).
• The automotive market is highly competitive with large fixed costs. In addition, the market demands continual long term planning and research and development.
• Very little market penetration within China and India.
• Global excess capacity for the automobile industry is estimated to average 30.5 million vehicles per year from 2009-2011.9
• Ford is selling a durable good during the most severe economic downturn in recent history.
Opportunities
• Ford has recognized the importance of small, fuel efficient vehicles and is actively transitioning into this market. Of particular interest is Ford’s ‘EcoBoost’ technology, which the company claims will result in 20% greater fuel efficiency and 15% fewer CO2 emissions.
• The ‘One Ford’ vision has the chance to generate significant margin increases for Ford’s smaller line of vehicles. Of
Strengths
• Timely acquisition of capital makes Ford more financially sound than the other Big Three carmakers.
• Product line is respected by industry experts and is qualitatively seen to be a step above many of its competitors. Recent surveys place Ford in a tie with Toyota for greatest customer satisfaction, a significant improvement from five years ago.
• Have a global market presence, with worldwide brand recognition and a particularly strong presence in Europe.
• Is perceived to be a thoroughly “American” brand, which helps Ford among certain groups of consumers.
• U.S. market share, after years of decline, has stabilized in recent years.
• The Ford F-series pickup remains the most respected commercial truck available; despite demand shifts, profitability on this line should remain high.
• Ford has had great success, particularly when compared to its competitors, at renegotiating labor contracts with the UAW.
Weaknesses
• Poor Profitability: Ford still loses money on many automobile lines, particularly within the United States.
• Importance of single components source (Visteon).
• The automotive market is highly competitive with large fixed costs. In addition, the market demands continual long term planning and research and development.
• Very little market penetration within China and India.
• Global excess capacity for the automobile industry is estimated to average 30.5 million vehicles per year from 2009-2011.9
• Ford is selling a durable good during the most severe economic downturn in recent history.
Opportunities
• Ford has recognized the importance of small, fuel efficient vehicles and is actively transitioning into this market. Of particular interest is Ford’s ‘EcoBoost’ technology, which the company claims will result in 20% greater fuel efficiency and 15% fewer CO2 emissions.
• The ‘One Ford’ vision has the chance to generate significant margin increases for Ford’s smaller line of vehicles. Of