Analysis of Ford and the World Automobile Industry in 2007

The first automobile was made useful in France and Germany in the late 1800’s. America’s industry of automobile started in the early 1990’s. Henry ford had a big production that was used everywhere and made America’s production well known in the world. Retrieved from http://www.academia.edu/11430673/Environmental_Challenges_Facing_the_American_Auto_Industry

Since the twentieth century, America has dominated the car industry business. Automobiles have made a major influence in the society and the economy of America ever since. Especially when Henry Ford, founder of Ford Motor Company, developed two of his inventions, Model T and Model A, flourished into a big success around the 1900’s. Nonetheless, the culture we live in today is influenced tremendously by the advanced technology we created, and it grants industries new opportunities that may evolve the automobile business as we know it.

Automobiles developed greatly throughout the early 20th century, from being clunky awkward things to drive to smooth easy to drive useful machines. The roaring 20’s became time of growth and development for the auto industry. (Miller-Wilson) Cars continued to become safer, cheaper, more reliable, and more practical. Cars saw huge technological advancements throughout the 20’s including better safety, reliability, and therefore became more practical. Development continued until the depression of 1929 hit. (1920’s Automobiles) The crash of the stock market in 1929 led to the Great Depression, which brought social and cultural changes that would have large impacts on the auto industry. (Duchardt) The auto industry, despite the economic difficulties of the 1930’s, continued to thrive on innovation and necessity.

Between 1890s and WWI the industry undergone some big changes. Business grew into new, giant dimensions, which caused change of mindsets of managements, and role of workers. At the beginning of the century the industrial advancements yielded growth in automobile industry, and by 1925 Ford produced a new car each 10 seconds, using assembly lines process.

Several factors have affected how the American auto industry now positions itself on the world market, and big changes have been made to reflect this new direction. The introduction of new technologies in vehicles, the growing market for cars in new developing markets, the impact of the industry on the environment, legislative responses and demands, as well as the increased expectations from consumers, are some of the factors. More international cars are being designed, manufactured and bought by American consumers and exported to foreign markets today than those exclusively manufactured by American companies, redefining the American auto industry, while having a positive impact on its economy. International brands accounted for 45% of total sales in the U.S. in 2013 and have now risen to 59% of the market, and continue to grow. While the amount of American cars has decreased in the local U.S. market share to international ones, the increase of foreign car production on U.S. soil has had the effect of creating new jobs for Americans both in the auto industry as well as in related new industries. The industry has seen huge growth numbers in the last few years with more growth expected.

The history of automobiles has made a huge impact since the 1970’s because technology had started to develope, auto parts were being created, and more carmakers were around.

Global competition in the industry: There are many vehicle manufacturers throughout the world. A few common vehicles seen in my state are GM, Chrysler, Lexus, VW, Honda, Toyota, Ford, and Jeep. Each company tries to stay ahead of the rest. Toyota, based in Japan, for example was one of the first businesses to introduce hybrid vehicles. This was a direct result of the oil embargo. After having three oil shortages automobile manufacturers are creating more fuel efficient, environmentally friendly products.

The automobile industry has influenced the US society in many aspects. The automotive production on commercial scale started in Europe in 1890’s. At this time, they were only able to produce a few numbers of cars in the market. When the automobile industry started in the US, cars were considered as toys for rich. From 1904 to 1908, about 241 auto-manufacturing firms went into business. One of these firms was Ford Motor Company, led by Henry Ford, which outpaced its competitors in a very short time. After Ford Model N success in the market, Henry Ford was encouraged to introduce his Model T car to the market; after several failed product lines. As a result of its durability and price, Henry Ford innovated one of the most important innovations

The automotive industry designs, develops, manufactures, markets and sells motor vehicles, and is one of the world’s most important economic divisions by profits. This analysis focuses on the industry, specifically, manufacturers of automobiles. There are five competitors in the StratSim environment: Firm A, B, C, D, and E. Industry sales in the most recent year were 4.3 million units, with expected growth in the next year. Within this industry, there are seven-vehicle classes: Economy, Family, Luxury, Sports, Minivan, Truck, and Utility. There are two new classes with potential – if properly marketed.

The Ford Motor Company and General Motors have greatly influenced and shaped the global automobiles industry over the 20th Century. While there are other big car-makers both in the United States and elsewhere in the globe, the two companies have been the commonest and significant players across the entire sector. This research focuses on an argument of how competition between both companies has benefited them.

In 1913, Henry Ford revolutionized product manufacturing by introducing the first assembly line to the automotive industry. Ford’s hallmark of achievement proved to be a key competence for the motor company as the low cost of the Model T attracted a broader, new range of prospective car-owners. However, after many decades of success, customers have become harder to find. Due to relatively new threats to the industry, increasing numbers of cars and trucks are parked in dealer lots and showrooms creating an alarming trend of stagnation and profit erosion. Foreign-based automakers, such as Toyota and Honda, have expanded operations onto domestic shores and, in turn, have wrestled

The United States Automotive industry has been dominated by five major auto manufacturers: GM, Toyota, Ford, Chrysler, and Honda. As globalization increases the domestic automotive market (GM, Ford, Chrysler) suffers from foreign competitors. Although with high entrance barriers the market suffers little to none from new entries. There are several reasons for this the largest being capital. It takes a lot of capital to obtain manufacturing plants, raw materials, as well as to hire and train employees. PASTEL Analysis

A second point of consideration relating to the intensity of rivalry within the industry was the level of industry demand. “Demand declines when customers are leaving the marketplace or each customer is buying less” (Hill &Jones, 2012, p. 62). This was the case in 2009 in many developed nations due to the recession, which was marked by job loss, credit problems, and high gas prices that increased the demand for fuel-efficient vehicles or left consumers unable to purchase vehicles altogether. At the same time, growth was expanding in China and some other developing nations, which opened the doors for automobile companies in these countries to expand at home and

Remember the days of the Old West? The women walked around with their parasols or rode in a horse drawn carriage and the men rode fast and furious on their horses. Everything you needed was right there in town: the saloon, the general store, and the barber. When one needed to get somewhere, they would walk. If they needed to travel far, there were steam-powered locomotives. As towns and cities grew larger, it was not so convenient to walk everywhere. There was a need for a machine that could get us around to where we had to go. Technology was becoming a bigger part of the times and the machine we now know today as the automobile was invented.

The next factor is to have a quality, compelling products that innovate and capture the customers attention. This is clear in that while people are statistically staying away from buying a car in exchange for public transportation especially in England, that luxury cars are selling well in worldwide poor economies. I would say the next factor is to create cars to sell to the U.S. market. Take the foreign market for example where the Ford focus in the United states is a clear C list car that isn’t that desirable is a great seller in countries like Germany where it is highly desired. The third factor is public perception. Auto makers must capture the public attention for sales, not just make the “best” or cheapest car. For years in America we have an opinion that due to the bailout for example that foreign cars are better and as such seek out Mercedes, Audi, BMW, Jaguar etc. and not a Cadillac. We seen this with GM who was trying to sell the ponaic G8 that was half the cost of European performance sedans and was a failure in the U.S. despite being one of GM's most exciting cars ever made for the market. The forth factor would be to study the market carefully. Motor vehicle companies must compete globally to make a living and as such must examine the growing markets worldwide and