Ford Motor Company Essay

Words: 3205
Pages: 13

I. Executive Summary The Ford Motor Company has been facing a steady decline in market share for approximately the past twelve years. This decline is largely attributable to their reputation for building poor quality vehicles that break down easily, and rising gas prices reducing demand for large trucks and SUVs, which is Ford’s main source of sales. Ford has already taken measures in response to this slump by introducing new car models such as the Fusion, as well as attempting to make their mark in the new crossover SUV market with the Ford Edge. However, many would argue that this is just too little, too late. While the Edge does lack certain qualities with respect to its competitors, it also comes with a more affordable price …show more content…
Ads were numerous when the Edge first came out, but since then very few have been seen.
Another weakness of Ford in general, and very likely the Edge as well, is although the replacement parts are inexpensive; they are more likely to break down than many of their competitors. As mentioned before, the public has become aware of this fact.
Ford has also been experiencing a steady decrease in sales and it has been going through financial difficulties, which makes it more difficult for them to promote and/or improve their products. This has been ongoing for over ten years. This decrease in sales has forced Ford to reduce production, as well as cut jobs and downsize many plants. Ford has been forced to mortgage over 20 billion in assets to finance the costs of downsizing, as well as restructuring many of their plants, has left little room for research and development, making it difficult for Ford to get out of their current predicament.
Another weakness, although somewhat minor, is the fact that the Edge doesn’t seem to be attracting many new customers. While Edge sales did exceed expectations, as it turns out most of those sales were on trade-ins of Ford vehicles. The Edge hasn’t been attracting new customers, only current owners of older Ford vehicles. Granted the increase in sales helps, but if they’re only selling to people who are already Ford customers, Ford won’t be getting any increase in market share.