How to Be an Automaker in 2018: Ford SWOT Analysis
Some companies are created to become undisputed leaders and to turn the market upside down. Meet Ford – the fifth largest automobile manufacturer in the world! The “lean, global enterprise for automotive leadership” has many business insights to offer. Our geeks have summarized some of these lessons, as well as Ford SWOT analysis 2017 and Ford SWOT analysis 2018 to provide the most accurate forecasts for the year 2019.
Fasten your seatbelts, as our analysis will be driving!
SWOT Analysis of Ford
As automotive companies are entering the era of uncertainty, they should look back at what they have already achieved and plan subsequent actions. There’s reason to believe that Ford will keep its leading position in the year 2019, largely due to the company’s capacity to drive through the obstacles of the modern business terrain.
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- Strong brand image: Even those who do not yet own a vehicle have heard about Ford Motor Company, America’s most valuable brand. For many people, Ford is synonymous to a real American quality that implies “doing it right when no one is looking.”
- Global supply chain: Ford has a model supply chain supporting the company’s operation around the globe. The company invests heavily in digitizing its chain and training people, so you get the best possible offer.
- Innovation: Innovation is at the heart of all processes at Ford. The company’s aspiration for innovation is enshrined in One Ford Plan. Particularly, One Ford Plan 2018 emphasizes “design thinking” innovative approach to remaking America’s oldest and, probably, most successful company.
For Ford, the sky isn’t the limit, and the company is continually looking for opportunities to mitigate weaknesses and to transform uncertainties into competitive advantages:
- Limited scope of production network: Although Ford operates around the world, its production network is less extensive than that of competitors. The company is going through hard times and has recently closed some plants in Europe and other countries.
- High costs: It’s also true that Ford vehicles are pretty costly. Therefore, many customers switch to Toyota that offers the SAME quality but at a LOWER price.
- Slow innovation: Customers dream of vehicles that are both speedy and innovative. But while Ford succeeds in the former, it is lagging behind in the latter. Toyota, Tesla, and Nissan outperform Ford in terms of innovation, which can cost the company’s competitiveness.
But, guys, let’s be optimistic and not forget that many opportunities are open to Ford Motor Co these days:
- Global expansion: There’s high and constant need for quality vehicles around the world; and of course, Ford is among the companies that are capable of satisfying this need. It’s high time to enhance the company’s production network and supply chain, and some experts suggest achieving this aim through market penetration.
- Product development: Another opportunity for Ford to improve its standing is through product development. For instance, there’s a growing demand for electric cars around the world. So, why can’t Ford offer a super trendy and environmentally friendly model?
- Cost reduction: While in the thick of price wars, Ford can win competitive edge through cost reduction. Sounds unrealistic? At all; expansion of supply chain, outsourcing, and innovation are just some of the possibilities to maximize opportunities.
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And what about threats? Unfortunately, they are present:
- Tough competition: Ford is the fifth largest automobile manufacturer, which means that there are at least four big competitors and a dozen smaller ones. Will the company stand the pressure? We’ll see…
- High-tech entries: Believe it or not but threat comes from…Google and Apple. These companies engage in the production of driverless vehicles. And who knows, maybe these “smarties” will outperform the good old Ford one day.
- Fluctuating prices: The recent crisis in Venezuela makes us think that driving a car can be costly because of fluctuating oil prices. I can bet Ford executives are watching rising prices with a sinking heart. And for many customers, every rise is a reason to doubt the advisability of buying a new vehicle.
Our geeks are entirely sure that Ford will make its way out of the hurdles. But the company should always keep an eye on competitors like:
- General Motors
Findings From Ford Annual Report 2017 and Ford Annual Report 2018
For those of you who think that Ford is going to decline, our geeks are happy to present indicators showing the company’s growth and fairly good prospects for the year 2019.
Did you know that…
- Ford Motor annual revenue for 2017 was $156.776B
- There was a 3.28% increase in revenue in 2017 when compared to 2016
- The company reported the market capitalization valued at US$35.7B in September 2018
Seems like the good old Ford is in service and does not plan to slow down in future.
For those of you who like numbers, calculations, and neat diagrams, it will be a pleasure to look through Ford’s annual reports. Our geeks also recommend taking a look at the Ford Sustainability Report 2017/2018 to make sure that the company is worth every dollar invested in it.
Operating in the automotive industry is not an easy deal even for such big companies as Ford Motor Co. However, findings suggest that despite tough competition and other hurdles, the company has the capacity to stay competitive. So, there’s reason to believe that our children will enjoy Ford vehicles as much as we do!
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