Essay on Ford: Company Analysis

3094 Words May 28th, 2008 13 Pages

Ford Motor Company have been around since 1903, and although in the past they lost market shares due to production and marketing scandals, they remain robust in 2005. This paper has been written to thoroughly analysed Ford through PESTEL analysis to comprehend the macro environment in, Porter’s Five Forces analysis to determine the competition and lastly SWOT analysis to depict the micro environmental factors of the company in question. It has been concluded that due to the fierce competition in the industry, and due to the changes in the environmental factors, Ford Motor Company needs to concentrate on improving on its weaknesses in order to avoid and overcome the threats.

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(BBC, November 2005)
• Women drivers and cars for women attract many stereotypical viewpoints. Ford has stated that “a man cannot be expected to design a car for a woman, since a man will not fully understand their needs and wants. For this reason we have women designers to design cars for women” (Ford, 2005). This provides Ford with a competitive edge in attracting women drivers to purchase their cars.
Technological Factors

• Technological advancements are vital for those in the automotive industry for several reasons.
• Primarily, research and development is necessary to attract new buyers, and firms cannot afford to be laggards. (Key Note, 2005)
• Secondly, firms need to be aware of new technologies for their production lines; this reduces man power and therefore reduces the costs of building vehicles. Japanese firms owe their success and profitability to technological pioneering. Ford are said to be pioneers in force-controlled robots for their transmission assemblies (Kochan, 2001), allowing them to have a competitive edge and to reduce costs incurred per vehicle.
• According to environmental studies, petrol in the world is anticipated to finish within the next 50 years (BBC, June 2004). Firms in the automotive industry must develop cars that use other means of energy in order to survive in the future.
• Verespej (2001), states that it is necessary for manufacturers to develop their
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