Financial and Strategic Analysis of Ford Motor Company - Essay Example

SWOT Analysis of Ford Motor Company

Strengths

1. Design, innovation, and engineering genius like supplier model, assembly line, production capabilities, etc.
2. Has also invented emission gas technology and hybrid engine cars
3. Good knowledge of the global marketplace and adjustable to local demands
4. Possess high brand recognition and reputation
5. Strong financial health (Gondek 7)
6. Diverse network of supply chain and distribution
7. The workforce is managed meticulously across the branches which counts as one of the biggest strengths.

Weaknesses

1. Could not withstand competition from Toyota and other Japanese car manufacturers.
2. The medium and small car market is still untapped.
3. Failure to diversify its business in other automotive dimensions, leading to falling demand in the upper car segment.
4. No segregation of suppliers, still rely on one supplier for all supplies.
5. Brand image getting damaged due to frequent product repairs and recalls.

Opportunities

1. Unmet demands in small and medium car market.
2. Emergence of hybrid and green technology-intensive vehicles.
3. Promoting its Volvo brand in the bus and truck segment in growing economies like India and Pakistan.
4. Collaborate with other manufacturers in Asia to achieve cost-cutting.
5. Entering into partnership with local brands in third world countries to cater to local demands and also be able to achieve cost sufficiency.

Threats

1. The aftermath of the economic crisis led to declining sales.
2. Emission norms are becoming more stringent in nations like the US and the UK.
3. Increased penetration of Japanese car makers in Western nations.
4. Increasing emotional attachment of customers to local car manufacturers in growing economies like Tata in India, Toyota in Japan, etc.
5. Inabilities to deal with local issues as regional players are better equipped to tackle these. Examples are engineering, safety issues, and production facilities.

Implications and Actions

SWOT analysis of Ford Motor indicates that its strengths are still intact. The external environment is fast changing and posing threats but the company has not been able to convert the threats into opportunities. For instance, it still relies on a single supplier, has not diversified to tap lower and medium car markets, etc. Ford had been global but not local. While all other global manufacturers are entering into collaboration with local manufacturers, Ford has still not traversed this path, leading to unmatched opportunities with its strengths (Blitterswijk & Karadzhov 31).

Building upon this analysis, it is recommended that Ford should now concentrate on developing more hybrid and green gas-emission cars (Pride and Ferrell 30). Also, the development of low and medium-segment cars is now an indispensable activity for the company to counteract the competition. Further, localization with globalization can be achieved only when it promotes pseudo brands in collaboration with local players like Ford-Tata and Ford-Suzuki, etc.