Ford

Strengths of Ford

1. Well known brand / History

a. Henry Ford manufactured the first car

b. Entered the business world on June 16, 1903

c. American product

i. "One of the most important findings from this research is that Americans really do want to buy American brands, as long as they are competitive with the imports," said Fields.

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2. Differentiated

a. Cars: fusion, mustang, focus, five hundred, crown Victoria, freestar, GT

b. Crossovers: Edge, Freestyle, Taurus X

c. SUV: Explorer, Expedition, Escape, Escape Hybrid

d. Trucks: Ranger, F-150, Super-duty, E-series

3. Cars have good reviews

a. Reliability

b. Cars are moderately priced

c. Quality

4. New "Bold Moves" marketing plan

a. Bold Moves Anthem

b. Bold Product Commercials

c. Kelly Clarkson Summer Tour

d. Original TV Programming

5. Incentives and financing

a. Great Offers on Fusion

b. Great Vehicles- Great Prices!

c. Ford Military Appreciation Program

6. Offers hybrid / environmental friendly cars

a. Escape Hybrid was the first hybrid-powered SUV available in the United States

b. Drives just like a regular Escape

Opportunities

Opportunity is a crucial step in the SWOT analysis. It deals with the external environment of a corporation. Opportunities play a key role in the continuing success of Ford. Without future opportunities the company would not be able to keep itself current and may end up worse off then it already is. An opportunity is an idea for a new product or service with a market that is willing to pay for that product or service so that it can form the basis of a profitable business.

According to Entrepreneur magazine there are four approaches where new opportunities may be. The first one is to tap the countertrend, which means to attempt to start a trend that is completely opposite of the current trend. The company may shock people and in the process could gain free publicity. The second is to eat off the established company's plate, which is a means of using an established company to get your own company out there. This could be in forms of banner advertisements on popular web pages or even on pizza boxes from your local pizzeria. The third is to switch the niche, which means to go after a new demographic and cater to a particular market. The fourth is to borrow a business model, which means to follow the business model of a company that is already thriving. If a company is doing well, another company can step in and copy it, and it may end up being better then the first.

Ford attempts to differentiate itself with new opportunities in safety, technology and design. In safety they are testing technologies for the future to keep families safe. They are attempting to help avoid accidents, and in addition they are trying to help enhance vision to make backing up and driving safer. In technology they are designing smarter and more efficient vehicles. Ford is moving into the hybrid age, concerning themselves with fuel efficiency, as well as thinking about hydrogen engines. In design Ford brings to the market exciting concept vehicles, new designs, and performance-oriented engine technologies. They want to offer a unique color palette for their cars, enhance performance styling, and take their concepts to the next level. Ford is now saying that cars should be more than just exciting to look at, they should be exciting to drive too.

Threats to Ford Motor Company

1.) The Intensity of rivalry Among Competitors

Ford is no longer competing on a national level. The automobile industry has broadened into a global industry. An obvious major threat is Japanese competitors, like Toyota, which have taken American car manufacturers by surprise. Japanese automakers prefer the concept of customization when building their automobiles. Instead of using the latest fancy technology, which is what U.S. automakers think is a solution to improve its products and attract more buyers; the Japanese prefer to customize existing systems and equipment. Japanese automakers are meeting consumer needs, which should be the primary concern of any business. Ford must address the needs and wants of its consumers rather than forcing its products upon its consumers (Emmons).

Japanese auto competitors have another competitive advantage; they are more passionate about their product. This is a result of their strong, tight organizational structure in which there is more team-based organization than the organizational structure that exists at Ford. Management teams up with the labor force and there is integration. Japanese workers are very involved when making their products. This system allows workers to give input into the operating process so there can be "continuous improvement," which seeks to aim for perfection through zero defects. This system of involving its workers encourages them to improve operations because the workers' feel important and a sense of accomplishment when their suggestions are listened and lead to improvement in production in the overall operations. The worker is more motivated to do a better job thus resulting in a better quality product (Novak & Fine).

Another threat that Ford faces is the difference in business strategies with its competitors. Ford, like other American car manufacturers, seeks short-term profit maximization focusing on the bottom line directly. Japanese competitors have used a different strategy that has allowed them to delve into the car industry very successfully. Their focus is on maximizing market share through quality products. It is through these quality products that they are building their place in the automobile industry as they follow the