July 9, 2012
Business Analysis Part I
Ford Motor Company was founded in Dearborn, Michigan in 1903 by a gentleman named Henry Ford. Henry Ford started Ford Motor Company with $28,000 and a big dream. He had a dream of creating a horseless carriage. His dream eventually turned into the Ford model T which he sold more than 15 million between the years 1908 and 1927. Ford is most known for developing assembly line production which revolutionized the automobile industry. This technique is not only still used today, and has only grown with modern advancements in technology. Ford would be amazed at the production in one of his plants today.
109 years later Ford Motor Company has over 166,000 employees working in 70 plants across the world. Ford has operations on six different continents and is still headquartered in Dearborn, Michigan where it was founded. Ford is one of the global leaders in the automobile industry and produces millions of cars each year. Built on the foundation of hard work and a big dream Ford Motor Company has sustained through the years to get where it is today.
Ford Motor Company SWOT Analysis Ford has a lot of internal strengths which include strong brand recognition, strong engineering and development departments, a global network of distributors and dealers and multiple lines of makes and models. Ford also has some internal weaknesses that include a decline in market share, greater competition, more educated customers and a number of product recalls. Ford does have a lot of opportunities right now that include the launch of new hybrid models, demand for higher miles per gallon, environmental friendly opportunities in their plants and opportunities in India and China. The threats to Ford include an economic slowdown in the United States, crude oil prices rising, mileage requirements by U.S. Government and competitors are getting stronger.
What does all of this mean for Ford? Ford has been around for 109 years and has been through a lot of good times and a lot of bad times. They have a lot of good things going for them which I believe will allow them to sustain for another 100 years. The strongest point is their engineering and development departments. Ford has always been a global leader and innovator in the automobile industry. This is still true today with the development of new models and especially the hybrid and electric cars they are producing. Ford continues to be a leader in the hybrid race for the most fuel efficient environmentally friendly vehicles in the industry.
A press release from Ford on June 26, 2012 states “Ford further grows customers’ power of choice, offering eight U.S. vehicles that deliver 40 mpg or more – double its number versus 2011 and more than any other full-line automaker.” (Ford Motor Company, 2012) This shows that Ford still has top engineers and is staying at the forefront of the industry. Ford also has plans to triple its number of electrified vehicles by 2013 to 6 which will allow them to stay competitive with choices and efficiency which customers are seeking.
One of the biggest threats to Ford is the competition getting stronger. Back when Henry Ford started Ford Motor Company he was the only game in town and didn’t have the same competition for the Model T that his company has today. With the way the economy is today consumers are shopping around and are more educated and aware of warranties and recalls than in the past. This creates a problem for Ford because it used to be my dad drives a Ford so I will drive a Ford and now it has shifted to who has the best warranty and at the best value. Ford has many competitors all fighting for the same customers as them. The entire industry is being forced to build better vehicles for less profit and offer longer warranties to get the customers. So with everyone fighting for the same customers it leaves Ford losing some of the