Ford Motor Company Swot Analysis

get over Motor Company SWOT Analysis Strengths Timely acquisition of capital makes Ford much financially sound than the other Big Three carmakers. Product line is respected by industry experts and is qualitatively seen to be a step above many of its competitors. Recent surveys place Ford in a tie with Toyota for greatest customer satisfaction, a significant improvement from five years ago. be in possession of a global market presence, with worldwide brand recognition and a particularly strong presence in atomic number 63. Is perceived to be a well American brand, which helps Ford among certain groups of consumers. U. S. market sh be, after years of decline, has stabilized in recent years. The Ford F-series pickup remains the most respected commercialised truck available despite demand shifts, profitability on this line should remain high. Ford has had great success, particularly when compared to its competitors, at renegotiating labor contracts with the UAW. Weaknesses Poor fa vorableness Ford still loses money on many automobile lines, particularly at bottom the United States. Importance of single components source (Visteon). The automotive market is highly competitive with large fixed costs. In addition, the market demands continual long term planning and research and development. Very little market penetration within China and India. Global excess capacity for the automobile industry is estimated to average 30. 5 million vehicles per year from 2009-2011. 9 Ford is selling a perdurable good during the most severe economic downturn in recent history. Opportunities Ford has recognized the importance of small, fuel efficient vehicles and is actively transitioning into this market.Of particular entertain is Fords EcoBoost technology, which the company claims will result in 20% greater fuel efficiency and 15% fewer CO2 emissions. The One Ford vision has the chance to generate significant margin increases for Fords smaller line of vehicles. Of particular i mportance is the Ford Fiesta, which was recently released in Europe and China and is slated for an early 2010 release in North America. The One Ford vision appears to be a coherent strategy for Ford to adopt assumption its changed role within the industry. Ford is perceived to be the most stable American car manufacturer because it has not been forced to take bailout money, leading to snub increases in market share. GM and Chrysler flexibility is limited by government involvement in their debt situation, putting Ford as a competitive advantage. In the event of a GM or Chrysler bankruptcy, Ford has placed itself in a position to steal market shareat least in the short term. Threats While not in need of a government bailout, poor financial results are straining Fords capital.Cash burn continues unabated, and estimates delegate Ford may be forced to seek government financing by early 2010 unless sales stabilize. While Ford is readjusting production, truck sales are falling rapidly an d Ford may not be able to shift production quickly enough to meet changing demand. Bankruptcy of Visteon or other parts supplier could cause severe disruption of supply chain. While Ford has besides many dealers at this time, it should remain wary of too many closures. In addition, because Ford Credit provides financing for most dealers it must be careful to avoid holding the bag when dealerships close.