Ford Motor Solution Essay

I. Strategic Profile friendship overview crossing Motor Company is one of the largest political machinemobile manufacturers in the world which Henry hybridizing is the founder. The companionship manufactures and distributes automobiles in over 200 trades across six continents. The companys strong brand portfolio gives it a significant war-ridden advantage. However, less fomite production in developed marts would shrink take up for the companys products, and ca-ca negatively impacting its financial performance.The Situation AnalysisThe US auto market was saturated, smelld the decrease in product demand and change magnitude competition from foreign manufacturers. Japanese political machines much(prenominal) as Toyota, Nissan, and Honda had come and took market donation in US market. Beca affair of the rising gasoline price, the demand of guests had shifted from US manufacturers to more fuel efficient political machine like Japanese car. The scotch downturn in US had s imilarly affected Ford to face loss. These made Ford gross revenue decrease. Then, Ford has to reduce the cost. Ford has drop off workers, block assembly plants, reduce vehicle models, and restructuring plan. Ford trim the number of retail outlets from almost 4,400 to 3,424.GM reduce its dealer to 4,500 and Chrysler reduced to 2,311. Most of Fords cuts were from larger metropolitan markets and the elimination of the mercury brand. Also, cut approximately 35% of its Lincoln dealers. Ford also implements wholeness Ford plan and its mission is wizard Ford, ONE Team, ONE Plan, and ONE Goal. In order to increase sale, Ford has develop marketing outline by provide large amount of information about the car such as price, quality and style on the internet for the customers to irritate to those unlimited information to compare products and choose the vehicles that meet their needs.The General milieuEconomic Economic crisis in 2006 that affected all the auto industry. some(prenomi nal) of the company had to bankruptcy or close the business. Ford also had to close umteen factories, lay off workers, and reduce the dealership to save cost. cost increase of gasoline prices make it more expensive for consumers. That makes Fords gross sales decline and less revenue returns. heretofore the economic in US is decrease but because of globalization. It increases the international opportunities to Ford mostly in emerge market such as China and India. Technology Ford has invested firmly in the development of premium technology to better serve its customers and to remedy the safety, security, fuel efficiency, and design. These technologies will help company to save cost, increase reputation, systema skeletale good image, serve customers want, and can deal with competitors.The Industry environment quin Forces Analysis1. threat of upstart entrants on that point are numerous factors that rebound new comers to entry the industry. Being in the automobile manufacture , it required spirited capital to invest. The companies have to invest a megabucks in question and development to crap new technology all the time. For example Ford invested $135 million to design, engineer, and manufacture key components for its hybrid, plug-in hybrid and battery galvanizing vehicles. The companies such as Ford, GM, and Chrysler are all has the reputation in the cause itself. And those three are called as the Detroit Three, they claimed about 50.1% of the US auto market in June 2011.So, it is difficult for new rivalry to build the name and compete with. Moreover, they have more experiences and can produce vehicles that more closely matched consumer needs. Even thought, Japanese cars had come to take market share due to the ride up of gasoline price and environment concerns. So, some consumers had turn to them.2. Threat of substitute productsAs the population increases and global warming problem, people have found alternative battery-acid methods such as tro lleys, Dial-A-Ride, taxis, bicycles, and walking. Enhancing public transportation systems such as rail systems and subways is to develop urban areas. These might gratuity private car less necessary to people. Also, we have to be cautious of the environment. Therefore, it creates the hybrid engine and fuel saving motor.3. Bargaining post of suppliers many another(prenominal) suppliers had been close due to the recession. And because suppliers have to cooperate with automobile industry, when automobile companies sales reduce suppliers will also affected. Therefore, there are highly competitive in suppliers. Ford chose to make a long term discernment with select strategic global suppliers to obtain best technologies and materials.4. Bargaining power of buyersThe gasoline price is affected the customers to purchase cars. And their preferences are design for car produced and change. Ford has to concern about the customer living life, style and what they want. So they can provide a car that answer the customers want to requite them the most. Buyers have power to control the price and design. Ford had used many media methods to reach the customers including newspaper, radio, television advertising, as well as social media. Buyers also make the price competition in industry. Ford had to produce at low cost to sell at low price.5. Rivalry among competing firmsThere are high competitions in automobile industry in twain domestic and international. There are many competitors in this business. Even, The Detroit Three took a biggest share in market the industry is still growing very(prenominal) fast due to new technology development. The competition from foreign manufacturers such as Toyota, Nissan, and Honda makes its more intense. It forced Ford to compete with others by say quality standard, new innovation, energy-efficient in order to increase the revenue and reduce cost.Internal Analysis (SWOT)1. StrengthsFord has strong brand recognition as they are one of the biggest companies in industry. Ford has huge investment in research and development to create new technology and has capability for engineering. Ford operated business over six continents and has large group of customers in some(prenominal) domestic and international. Ford had wide network of distributors and dealers. The company change to use pull strategy to give higher priority in customer satisfaction and driven by customer demand and preferences. Moreover, Ford gets many awards about technologies they had invented. We can see the success of Ford from the global sales of the latest generation model Fiesta, available on five continents that sold more than 1 million.2. WeaknessesFord had recalled about 300,000 cars because of the possible fire risk of infection from engine overheating problems. This might affect the image of Ford and the information of customer toward company.3. OpportunitiesEven the demand for vehicle in US had pretermit but it can replace by globalizatio n. Ford has made attentions to rising market in China and India. These two markets expected to grow very fast and become ranking to first three largest markets which have China, India and US. In addition, Ford has joint venture with many companies in foreign to create more strength. The population is now increasing rapidly so demand for car will be higher. And because there are trend of saving fuel, environmental, economic issues and increasing demand for dual fuel vehicles, Ford new hybrid vehicle model will gain a lot of interest.4. ThreatsAsian car had come to take market share in US market. The prices of Asian cars are obviously lower. The demand for Japanese car has increase. This made Ford to reduce the price to maintain the market share and had to reduce the cost of production. Economic slowdown in US and Euro partition off was also one factor that created Ford net losses. Competitors environment