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Ford Motor Corporation SWOT Analysis

Ford Motor Corporation

1- Business Overview

Ford Motor Corporation made the Ford cars, as well as the trucks and sport utility vehicles. However, through sellingFord Motor Corporation SWOT Analysis cars and spare parts company make its profit. The company also focus on the Lincoln luxury vehicles so that there could be benefits in the market. Moreover, Ford Motor Corporation is serving the four segments in the market, for example, Central Treasury Operations, Ford Smart Mobility LLC, Automotive and Financial Service. The company deals with the dealerships for retail sales or there is the sale to fleet customers (Reuters.com, 2018).

Ford Motor Corporation also has the commercial fleet customers, and there are services related to the daily rental car, the company provides the parts and accessories to the dealerships across the world and there are also the service contracts. Ford Motor Corporation has various services for the customers, in the automotive industry as the company is effectively selling and getting the benefits in the Company’s automotive segment. The company is effectively getting the advantages from the Lincoln brand vehicles. There are effective services for the vehicles as the company dealing with the dealerships to manufacture, distribute the spare parts and accessories.

2- Summary

Ford Motor Company was incorporated in the year 1919, however, the company is known as the global automotive. Ford Motor Company is known as the mobility company which is providing the facilities to the customers includes designing, marketing, manufacturing in a servicing line etc. Ford Motor Company is operating its functions and operations in North America, South America as well as in the Asia Pacific, Africa, Middle East and Europe. Ford Motor Company is effectively dealing in the automotive segment, there is also the support to the risk management activities (Pride & Ferrell, 2013).

3- Product Description

Ford Motor Company is effectively providing its products in the market example Ford is selling cars and spare parts. The products also include the Lincoln luxury vehicles, there is also financing to the automotive segment so that customers could get the facilities and so that there could be benefits related to the vehicle-related financing in the market. Moreover, Ford Motor Company is also concerned about providing the facilities related to the leasing activities through focused on the automotive dealers. There are two portfolios for which company is serving example, consumer, and non-consumer (Hitt, Ireland, & Hoskisson, 2014).

4- SWOT Analysis of Ford Motor Corporation

Strengths of Ford include:
  • Brand Value, which is $19.771 billion according to the report of Brand Finance (Morley, 2016).
  • The company has the Strong R&D example, the company is efficiently spending on the fuel efficiency, customer satisfaction, safety etc.
  • Ford has the Patents in the manufacturing industry example, there are 38,500 active patents.
  • Ford is concerned about the New technologies in the market, for example, fuel efficiency, hybrid cars, and six-speed transmissions etc.
  • The company is effectively getting the Market Share example, it was 7.2% in 2015.
Weaknesses of Ford include:
  • Product Fails example, there are issues related to the cars failure and safety reasons, which may reduce the brand image of the company.
  • Emerging Markets, Ford is facing the issues in the emerging markets, example there is the break-up of the market share, and the company is not getting the high potential returns when compared in the global market share.
Opportunities for Ford include:
  • Expansion: Ford has invested the $2.5 billion in the new engine as well as in the transmission plants.
  • There are global automotive opportunities for Ford, for example, in the Hybrid, electric and fuel cell etc.
Threats of Ford include:
  • Environmental Regulations, for example, there are more stringent laws in countries.
  • Issues in the Global Economy example, the economies are facing a slowdown.

5- Competition weaknesses

Regarding the competition weakness, it is analyzed that Ford is facing the issues related to higher costs when compared to competitors. However, the company is effectively focused on the production facilities but in comparison, Toyota has the good global network and production facilities but Ford had the costs expansive network, as well as the prices,  are relatively higher, Moreover, Ford is relatively slower when focused on the innovation effectiveness.

6- Different/ better

Ford is different and better in the automotive market as there is effectiveness in the global operations, the company focuses on the research and development by analyzing the effectiveness of the internal strategic factors. Moreover. Ford has the strong brand image and a good network of the global supply chain. The company is better as in some way ford is spending on the effective innovation processes.

7- Problem in Ford Motor Company

Ford Motor Corporation has the slow speed of innovation as well as the scope of the production network is a week, therefore, the company can face the issues or competition with existing firms or with the new entrants. In this way, Ford Motor Corporation need to focus on the research and development investments and there is the need to focus on the increase in R&D for the innovation speed.

8- Financial Overview

Through the financial analysis of the Ford Motor Corporation, it is known that the Gross profit in 2017 was 25,444, in 2018 it would be 28,538, however, there can be increased with the 29,395 in 2019, 28,549 in 2020 and there will be an increase of 29,976 in 2021, 31,175 in 2022. Regarding the Net income, it is known that 2017 was 7,602, in 2018 it would be 7,858, however, there can be increased with the 8,111 in 2019, 7,262 in 2020 and there will be an increase of 7,670 in 2021, 8,030 in 2022. However, net income and gross profit of the company seems to be increased in the coming years. The total assets of the company are 257,808, however, with 2022 there will be continuous increase with the 297,551.

  • Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2014). Strategic Management: Concepts and Cases: Competitiveness and Globalization. Cengage Learning.
  • Morley, M. (2016). The Global Corporate Brand Book. Springer.
  • Pride, W. M., & Ferrell. (2013). Marketing 2014. Cengage Learning.
  • Reuters.com. (2018). Ford Motor Co (F.N). Retrieved from https://www.reuters.com/finance/stocks/overview/F.N

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