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Ford Motor Company Analysis Summary

Analysis on Ford Motor Company


The Ford Motor Company was by Henry Ford, in 1903. Ford Motor Company is the second largestFord Motor Company Analysis Summary automobile manufacture on the global scale. The company has very well known brands like Volvo, Mercury, Lincoln, Aston Martin etc. They have 90 manufacturing plants, and about 224,000 employees, their success lies on their customers, as they are providing best quality to their customers, they are strengthening their company by providing benefits, to their customers. Ford is committed towards their strategies; their strategies are based on sustainability and growth of the communities, they are doing advancement technologically, and supporting the communities.

Efficiency – Scale of Production

The plan of Ford Company enables the development of the products; they have the full line of the car, they know the value of their customers, they meet expectation of their consumers by making small, medium and small cars, they are planning to continue accelerate development of new products, to meet the wants and values of their loyal customers.

They are providing people with luxury vehicles, vehicles for full family, their designs are smart and safe, and they are providing quality products the cars, utilities and trucks that are efficient in managing the fuel and giving technologies to multiple regions on global platform. They have the fastest showrooms in the industry; they want to deliver profitable growth foe all. They are delivering the product with excellence and performance (Ford, 2016).

They believe that their products are lifeblood of their business; they are planning for the product lineup, and they are significantly refreshed their product globally. They launched 24 new products in 2014, including the all-fords 150, Escort, Transit and Lincoln MKC etc. they have launched 15 new product in 2015, they want to provide best class vehicles to their customers, they are continue to make progress and  they are providing platform to the people across the global market.

 Product Quality

They are selling high quality products to their customers; they are very concerned about their customer’s preferences, they are rapidly evolving with the technology, they do updates and model of vehicles and technology. They do innovations on the customer demands, they want to make future transportation accessible and affordable, there approach is innovation in the products and they love taking intelligent risks. Their products are up-to-date and customers find them friendly, their products are appreciable around the world, they take nothing for granted. Ford is a fast moving brand, and they are focused on the customer’s experiences. They want to make the world better from their products, it is their strategic priority to deliver product with high quality.


Technologically they are growing with the fast growing world; they are innovative and believe on staying with world, they have so many business models that are going towards technological advancement, human machine interaction, is the machine that can interact with people, it has the digital technology. Battery research power up, it is the initiative durable battery timings, medicine in motion; it is the equipped Ford Endeavor, reimagining rural healthcare. 100 years of the moving assembly line, it is the first moving plant in the manufacturing industry, driving innovation in silicon valley, the advance team of Ford that is doing researches to explore the future of the mobility. Sonic signals, the vehicle ensure the importance of vehicle chimes break, it came from out space the international space station and the body of work, the f-150 is the best-selling vehicle in United State, from last 32 years (corporate.ford, 2016).

These are the current technological projects, on which the ford intelligence team is working, to explore the world and technology, for the present and for the future. They welcome intelligent talent because they know they will grow in future and they are doing investments on technological projects. They are associated with the innovative technology, they are emerging as an opportunity in the market, they are growing towards making their product, high efficient from entering the market.


Ford Motors have number of competitors in the industry; in competitive market, they have large number of rivals, the competition pressure is high because the consumer’s demands change rapidly, differentiation strategies increase the demands of the customers. Toyota Motor Company, Honda Motor Company, General Motor Company, Automotive Group are main competitors of Ford. They have 16% of market share in automobile industry; they have loyal customers as they give best quality of the products to their customers. They are very concerned for the competitive advantage they do, customer involvement, customer’s feedbacks, research and development investments, they spend on advertisement, they have powerful brand recognition and they are enabling themselves for future growth and sustainability.

They have advantage in the market due to market share and their planned strategies; they know how to capture the market and how they can increase further. They think production of the new technology is there responsibility, they want to succeed in the market and want competitive advantage this is the reason they are doing advancements towards research and technology. They want to grow, they want to improve their balance sheet and want to work effectively, their team management is very effective as compared with the competitors, they have employees because they know how to retain and train their employees, they have effective strategic management to deal with the crises.

Cost Structure

The cost structure of Ford Motors is weak because they have higher costs than their competitors do, they have fixed and variable both cost structure, as there prices are higher in the automobile market, this could result in limit their profitability and their customer can switch to other brands, offering better cars at less process. They may decrease their profitability, in recent years, due to higher prices of their cars, truck and other products (Ford, 2016).

External Threats or Opportunities

Ford Threats:
  • The biggest threat is the growing of the German and Japanese companies in the North American auto market.
  • Competitors and other companies also adapting the electric vehicles, and they are upgrading to reduce the Ford’s profit (Kassab, 2015).
  • The demand of alternative vehicles could be reduced, as the prices of petrol are going lower.
  • It is estimated that future sales of cars, could be result in reeducation, as the new generation do not want to drive the car.
  • It is also predicted that services like Uber or other self-driving vehicle, can result in limit the market, for cars and financing.
Ford Opportunities:
  • As Ford is new automotive technology, it could increase demand for new models, sales, through sales profitability can be increase, and good will can be created in the market.
  • They could grow in the auto market by expanding in other economies like, China, Pakistan, Russia, India etc.
  • The alternatives cars are the biggest advantage, the C-Max Electric Car and the Fusion Hybrid, which are not dependent on the diesel or petrol, in the case of instable economy, these cars can give advantages to the Ford Company, example, the increase in the price of petrol or diesel.
  • Through investing much on the marketing, advertisements and effective strategies like rental services, cost-effectiveness could take place, and company can get success.

Strengths and Weaknesses With Respect To Competitiveness

Ford Strengths:
  • They have the strong brand image in the competitive market. It is the second largest automobile brand in the world; its competitors not have such strong brand name.
  • They have the two large market in China and Europe and biggest market in U.S; this is the reason of their higher profitability. Ford awarded first for best global green brands among competitors (Pestleanalysis, 2016).
  • They have strong market position in overall the world.
  • They have past, resulting in significant cost reduction, while other does not have.
  • They have strong research and development, manufacturing and automobile marketing.
  • The demand of commercial vans are increasing because the increasing of, delivery services, created by the e-commerce. Competitors are less focusing towards vans, truck, Ford have the advantages of verity in automobile industry.
  • They launch number of car models every year, however, competitors so not launch.
Ford Weaknesses:
  • As compared to the competitors, they face inability in the production capabilities; the competitors like general Motors and Toyota Motors are performing better than the Ford Motors.
  • Ford is facing problems like poor reputation in America, because the people of America compare Ford with European and Japanese’s companies. Even the Lincoln is considered the inferior brand in America, when it is compared with the competitors.
  • They are highly dependent on the U.S and European, market for the sales and promotion.
  • Their heavy reliance is on; trucks and pick up sales and pick have the very less appeal outside North America.
  • There are well-established brands in the automobile market then Ford, as if Mercedes Bens and they have loyal customers, who will never switch the brand.
  • They have earned low stock price last years, e.g. $ 15.26 per share.
  • They have poor reputation with the investors, which can be barrier in the development of the company; the competitors have good reputation with the investors.
  • corporate.ford. (2016). Information Technology. Retrieved April 9, 2016, from https://corporate.ford.com/careers/departments/information-technology.html
  • Ford. (2016). A Vehicle for Every Lifestyle. Retrieved April 9, 2016, from https://www.ford.com/
  • Kassab, C. R. (2015, Jan 21). Competitiveness of Auto Industry Presents Challenges to Ford Motor Company. Retrieved April 9, 2016, from https://www.at.ford.com/news/cn/Pages/Competitiveness%20of%20Auto%20Industry%20Presents%20Challenges%20to%20Ford%20Motor%20Company.aspx
  • Pestleanalysis. (2016). SWOT Analysis of Ford Motor Company. Retrieved April 9, 2016, from https://pestleanalysis.com/swot-analysis-of-ford/

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