Analysis of Ford and the World Automobile Industry in 2007

678 Words Mar 5th, 2011 3 Pages
History of Ford and the world Automobile Industry:
1.Sociocultural: A few sociocultural factors have led back the automobile industry. Ford had suffered 10% fall in unit sales year on year with sharp declines in sales due to inaffective execution of the companies strartegies. The survival of ford depends critically on yhe state of the world auto industry.
2. Technological: Earlier horseless carriages were used as a source of conveyance. With the upgradation of technology the Ford Model T was introduced in the market. It was the first dominant design in automobiles. With the passage of time more new designs like VW Beetle with its rear, air cooled engine, the citrogen 2-CV and its idiosyncratic braking and suspension
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Economies fron sharing development costs also encouraged increased collaboration and joint venture : Renault and Peugeot established joint engine manufacturing, GM with Suzuki, build cars and share platforms and components. Flexible manufacturing technology together with modular designs reduced the extent of scale of economies in assembly since different models could be manufactured within the same plant. To enter into the automobile industry requires a huge amount of investment in automobiles, certification to set up plant and marketing.

Rivalry among existing firms: With the convergance of new designs and technologies, the range of new vehicle types has increased. New vehicles include passenger vans, SUVs, micro cars, etc. All the emphasis by manufactures was on global models, national markets were characterized by their differences than by their similarities. A major problem for the industry was the tendency for the growth of production capacity to outstrip the growth in the demand for cars. In the market where the demand was growing faster , growth of production capacity outsripped growth in demand.
Threats of substitute products/Services: Generally people prefer to travel by their own convenience that can be car etc. There is little more public transportation also
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