Ford SWOT Analysis analyzes, Henry Ford founded Ford in 1903. The company’s headquarters is at Dearborn, Michigan, USA. It is among the top automobile brands around the world. It offers commercial vehicles under the Ford name and luxury vehicles are sold under Lincoln brand. Lincoln name. It is also among the top American-based automobile manufacturers with the highest earnings by it’s North American Segment. Each year, it produces 4plus millions vehicles. The company is the 5th biggest automaker in the world.
Did you know? Did you have the knowledge the fact that Ford is the second-largest family-owned business around the globe?
Pioneering the modern assembly line, the Ford Motor Company has held a competitive lead for over a century. The cutting-edge manufacturing process offered by Henry Ford allowed personal mobility to be afforded by the masses, as long as the masses were happy with their vehicles being painted black. Since its inception, the Ford Motor Company has become a leader in reliable and efficient internal combustion-driven motor vehicles.
This can only be achieved through a firm with extensive knowledge, experience and innovative strategies. To determine the strengths of the company potential, weaknesses, opportunities and threats, it is necessary to conduct a SWOT analysis by Ford.
Ford At A Glance – Ford SWOT Analysis
Company: Ford Motor Company
Founders: Henry Ford
Year of establishment: 1903
CEO: Jim Farimbley
Headquarters: Dearborn, USA
Employees (Dec 2020): 186,000
Ticker Symbol: NYSE: F
Annual Revenue (Dec 2020): US$127.14 Billion
Profit net income (Dec 2020): US-$1.28 Billion
Products & Services: Cars| SUV and Crossovers | Trucks and Vans | Hybrids and EVS | Commercial Vehicles | Future Vehicles | Fleet Vehicles
Company Website: www.ford.com
Competitors: General Motors Company | Toyota Motors | Tata Motors | Daimler | Hyundai Motors | Honda Motor Company| Tesla Motors | Volkswagen | Renault Group | Fiat Chrysler Automobiles | Nissan | Group PSA | Geely Group | Maruti
Ford SWOT Analysis – SWOT Analysis Of Ford
SWOT Analysis Of Ford analyzes the brand based on its strengths weak points, weaknesses, opportunities, and threats. With Ford SWOT Analysis it is clear that the advantages and disadvantages are internal factors, while threats and opportunities are external elements. Here we are going to talk about Ford SWOT Analysis. Below Is The Detailed SWOT Analysis Of Ford.
Ford Strengths – Ford SWOT Analysis
1. Global Recognition: Ford is an established brand in the automotive industry. It is also well-known in world market due to its accomplishments in advertising and marketing. It has two brands under the Ford Motor Company i.e. Ford and Lincoln. The value of its brand has been estimated at $10.44 billion according to the 2021 report by Statista.
2. Automotive segment: Ford is at present one of the second largest automobile manufacturer within the U.S. (behind GM) and the fifth largest (behind Toyota, Volkswagen, Hyundai, GM) in the world. Ford Motors sold a total of 4,187,000 vehicles in 2021 across the globe.
3. Research and Development: Research and Development Ford’s commitment to research and development department is among its main strengths as Ford is determined to develop and create new products. They continue to enhance its performance and efficiency. automobiles. The elements that are evaluated include efficiency, fuel as well as safety and satisfaction.
4. Diverse Selections: Diverse Offerings Ford is able to meet the needs of all demographic groups by offering a variety of brands and models of cars. They cater to the wants and needs of their customers by offering them a greater diverse selections of commercial and car vehicles.
5. Adaptability: Ford has a diverse range of services and products that allows them to leverage their position and less dependence on one range of products. Their dedication to adopting the latest technologies can also help them gain a foothold in the highly competitive automotive market. They are working on lighter the weighting of their vehicles, cabin technologies and powertrains to improve the quality of their products. Ford recently updated its top-selling pickup truck known as the F-150 that is designed to be able to meet the changing preferences of consumers and demographics. The latest model of F-150 truck is redesigned to appeal to the younger market. It is expected to launch on November 10, 2020. Ford plans to develop an electric model of the F-150 that will be available in mid-2022. This will allow Ford to ensure that the F-150 that is its top-selling model can keep up with consumer shifts from petrol to electric.
6. Massive Network of Dealers: The company is also varied in its distribution and operations and distribution, with an enormous network of 10,000 dealers around the globe. Ford builds its vehicles on the basis of standard processes. They also make huge investments in various fuel sources.
7. A Strong Financial Situation: Ford’s financial strength position is fueled by the growing demand for SUVs and pickups. In the year 2020, Ford is generating a higher than expected income of $127 billion. The reality that Ford continues to grow even in the midst of turmoil in 2020 demonstrates that its growth potential and in the near future, it will be much greater.
Ford Weaknesses – Ford SWOT Analysis
1. Recalls of Products: Ford was hit with a massive loss, and their image was damaged by recalls on their products back in May of 2016. The recall affected around 830,000 Ford and Lincoln vehicles to fix defective doors’ latches. The company also recalled vehicles in May of 2015 because of the security issues of Takata airbags. Ford recalls 20500 Kuga the PHEV cars in Europe due to its high-voltage battery causes the vehicles to catch fire. Ford also recalls greater than 558,000 mid-sized vehicles within North America due to issues with brake fluid leaks.
2. Insufficient Foothold within Emerging Markets: As Ford’s operations span numerous geographical regions and areas, they are not focused on productivity and performance. They don’t hold a monopoly within the emerging market such as India.
3. Poor Reputation: Ford enjoys a bad image when compared to the reputation of its European and Japanese counterparts. Lincoln is in particular is regarded as a lesser brand when compared to English and German premium auto brands.
4. Reliance on U.S Markets: The dependence of the U.S. market Ford is heavily dependent on U.S in addition to the European market. It reduces its revenues and profits. Experts believe that the majority of the future vehicle sales will come through developing markets like China as well as India. The sales of Ford within the US market have been decreasing each year due to increasing competition in the market. In 2020, the company sold just 2.04 million Carsin the US that’s a drop of 15%, compared to 2.4 million vehicles in the year 2019. Relying upon America’s US market is proving to be a major drawback for Ford.
5. A dependence on trucks and SUVs: Ford’s wide range of vehicles is rapidly disappearing since the company is focusing more on SUVs and trucks. At present, trucks account over half (54 percent) in Ford’s volume of vehicles that are sold within the U.S. market, with plans to increase the number of SUVs in the near future. In 2020, Ford’s automobile segment fell by 45 percent (vehicles were sold). Dependence on SUVs and trucks is risky because the majority of people are aware of the effects of climate changes and are avoiding large gas-guzzlers.
Ford Opportunities – Ford SWOT Analysis
1. Eco-friendly Vehicles: Since Ford is already working to stay technologically agile and adaptable, they have an excellent chance to develop fuel-efficient automobiles or commercial vehicle. For instance they could build vehicles that are powered by different kinds of energy. So they can have more choices for designing eco-friendly cars. This year’s C-Max along with the Fusion Hybrid car model could be their best chance, since they’ve already taken over the market with their new model.
2. Enhance Customer Base: Ford is currently working on expanding its reach into the automotive market within India and China and China, which gives them an chance to reach out to other smaller countries around the world, and expand its customer base. From July through September 2020, sales for Ford in China were up by 25 percent and reached 164,352 units which is a sign of that the company’s customer base is growing in Asia.
3. Digital Marketing: Marketing via digital channels is the norm across the globe nowadays, which means that Ford has the chance to develop their digital marketing abilities to improve its supplier and customer relationships.
4. Self-driving vehicle: In 2017, Ford has invested $1 billion in the Artificial Intelligence business, Argo AI, to create its self-driving technology. Additionally, Ford has partnered with Walmart and Postmates to explore the technology that will allow grocery delivery to the. Ford announced it will launch “Active 2.0 Prep Package ” Active 2.0 Prep Package” within Mach-E, a model that allows the hands-free driving of certain conditions. Autos equipped with this semi-autonomous technology will be on the market in the second quarter of 2021.
5. Expand into related Fields: The company Ford has years of expertise in various fields associated with the automobile industry. The new CEO of the company, Jim Farley, recently announced that it will expand operations into fleet management, software, electric vehicle charging and related fields of technology.
Ford Threats – Ford SWOT Analysis
1. High Competition: Ford is already facing fierce competition from its competitors such as Toyota, Tesla, and Tata. Ford continues to struggle to keep its competitive position in the marketplace.
2. The price of raw Materials Increased Prices of Raw Materials: The increasing prices for raw materials like steel and steel coil could directly impact the cost of a company or profit margin.
3. Regulations and compliance: The regulatory and compliance risks for car manufacturers have grown over the last time due to environmental advancements taking place all over the globe. Vehicles are being scrutinized to ensure safety for the public and also quality concerns. Ford could face significant issues if it doesn’t adhere to the new rules. Ford is currently facing a civil suit before the US Supreme Court after it was sued by two victims injured in crashes involving second-hand Ford vehicles. injured in collisions which involved vehicles that were used Ford vehicles.
4. Market uncertainty: In the initial period of the year 2020, uncertainty all over the world have hammered Ford extremely brutally, resulting in an increase in sales to 516,330 vehicles and a decrease of 12.5 percent compared to the same timeframe in 2019. It was impacted more than its competition General Motors and Fiat Chrysler. The market turmoil have also caused Ford’s German branch to seek an 582-million grant to the German government to help cushion the effect of the slump in sales.
5. Solid Labor Unions: Strong Labor Unions Canadian autoworkers’ union is becoming stronger and exerting its influence to thwart automakers in the country, such as Ford. In the year 2020 it threatened to go on strike in the event that Ford did not make investments to ensure its employees’ employment over the long term. To avoid a strike Ford was required to make $1.4 billion in its Oakville and Windsor manufacturing facilities in Canada in the agreement that it struck with unions.
6. Ford shuts down its manufacturing factories in India and Brazil: In Brazil and India Ford has halted its automobile manufacturing activities in India. This means that Ford will no longer sell Figo, Aspire, Freestyle, EcoSport, and Endeavor in India. The company will, however, Ford will continue to manage its business solutions engineering, support services for customers in India. In the same way, Ford has closed 3 manufacturing facilities in Brazil in 2021.
Ford SWOT Analysis Template
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