Swot Analysis Of Ford Motor Company

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Ford Business Strategy

Shawn Landry

College of Business Industry Analysis The United States employs over one million workers and 3 percent of the U.S. economy is represented by the output of auto manufacturers in the U.S. (Klier, 2005). An average of over eight million passenger vehicles is produced in the United States annually. In a report published by Young (2014), auto sales in the U.S. have increased by 9.1% since July 2013. The automobile industry is a competitive industry, with global manufacturers such as British Motor Works (BMW) and Mercedes among other manufacturers importing vehicles into the U.S.; consumers have a wide range of vehicle makes and models to choose from. Several factors influence the demand for vehicles. In 2008, an economic crisis affected the auto industry in a tremendous way. Consumers, worried about layoffs and financial catastrophe, stopped buying cars and demand for new vehicles fell from 17 million units annually to 10 million annually almost overnight (UAW, 2010). Other …show more content…

Manufacturing and problems with design have created the need for Ford to recall some of the most popular models in its lineup. In 2013, the Escape crossover model, Ford’s second-best selling product was recalled seven times (Ford Motor Company SWOT Analysis, 2014). Further adding to its image decline, the company was faced with penalties from the government concerning recalls. In July of 2012 for example, US regulators access a penalty of $17.4 million to Ford for failing to recall nearly 424,000 Escape SUVs quickly. These frequent recalls have a negative impact the confidence consumers have in Ford’s products. In summary, the breakdown of Ford Motor Company’s weaknesses is:
• Product recalls are frequent, with “TGW” averaging 1,388 per 1,000 vehicles.
• Decline in sales of vehicles in India and Russia impact Ford’s international growth and competitiveness.

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