Main Competitors And Market Structure

While companies that make up an oligopoly are competitors, they are acutely aware of the processes, systems, and actions of the other companies; therefore, the decisions and actions of one company usually influence and are influenced by the actions and decisions of other companies. These decisions and actions tend to restrict and limit the goods and services that are offered and can also lead to higher prices for

Ford and Chevy both are good-producing sectors, they both manufacture automobiles that are similar but different.

Ford Motor Company has been and till the date is known as the king of innovations in the automobile industry. Their research & development department and innovation of interchangeable parts in moving assembly lines resulted in extraordinary global extension for them. They are an old heritage who ruled and still doing impressive jobs in the global automobile market. Some prestigious motor brands are also owned by Ford.

Though Ford, Dodge, and Chevrolet had managed to make cars affordable a new problem arose, and that was who can stay at the top of the automobile business? Though we’ll never know exactly when Ford’s and Dodge’s rivalry will end, we do know they will keep making some nice

Ford’s sales plummeted in the United States owing to high competitive rivalry from companies like Toyota, Honda, etc. These companies had a competitive edge over Ford motors because of which they were able to penetrate the US market and gain significant market share. A VRIO analysis of Ford Motor Company and Toyota will help us understand the market.

Firms that are interdependent cannot act independently of each other. A firm operating in a market with just a few competitors must take the potential reaction of its closest rivals into account when making its own decisions. For example, if a petrol retailer like Texaco wishes to increase its market share by reducing price, it must take into account the possibility that close rivals, such as Shell and BP, may reduce their price in retaliation. An understanding of game theory and the Prisoner’s Dilemma helps appreciate the concept of interdependence.

This resulted in Ford being the first of the US Big 3 automotive car manufacturers to change its strategies by producing smaller vehicles designed to achieve competitive pricing, improve fuel economy, safety, performance, quality and technology.

Firstly, the automobile industry of USA is facing an intense global competition. Beside some American brands of automobiles such as Ford, General Motors (GM), there are other foreign brands which are proving their positions in the automobile

Ford has five major competitors and they are General Motors Corporation (GMC), Toyota, Nissan, Chrysler and Honda. Below is a comparative market share graph based on the U.S automobile market between the years of 2012-2013.

Large Number of Competitors- There are many competitors in the automotive industry and many of them are ranked higher than Ford, in recent polls, due to the growing global reach and recognition by consumers.

As the automobile industry continued to grow, other automobile companies began to arise. However, The Ford Motor Company continued to be innovative in order to stay ahead of the other competing companies.

General Motors, while they are the largest automobile maker, are currently going through a decline in sales. Their competition is extremely stiff. With competitors such as Ford, Chrysler, and other Japanese vehicles that have lower production costs and include better styling issues and quality in mind, this makes for a difficult struggle for GM.

USA automobile market was a well-developed mature market during 2001, which had around 24 companies who were competing in the US market with major products dealing in cars, trucks and buses. GM, ford, Chrysler and PACCAR were the major American companies in the automobile industry. GM operated on a global scale and had manufacturing units outside competition from outside players. Its market share declined to 63% in 2001 from 72.4% in 1994.

So far the Toyota Motor Corporation of Japan has surpassed all the American Auto Industry such as Chrysler, Ford and General Motors. Toyota has also topped the world ' most admired Vehicles Industry according to Fortune Magazine. There are various factors that have made the American Auto Industry to face stiff competition. The following are some factors:

Ford Motor Company is an American multinational corporation and the world's third largest automaker based on worldwide vehicle sales.