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Ford Competition Essay

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In a present day of global warming, environmental issues, labor unions, and other impacts, the automobile industry is in an era of instability and change. Ford Motor Company has been traditionally considered one of the "Big Three" in the auto industry, but they are not adapting as well as hoped to the changing industry, and will have to strategize to survive in a struggling industry.

There are many different risk factors for Ford and its competitors. In this paper we will look at two competitors for Ford that are also considered to be members of the "Big Three" and coincidently, are not adapting to changes in the auto industry as quickly as other competitors. These other companies are General Motors (GM) and Daimler Chrysler. We will also look at the general group of foreign car manufacturers who are steadily acquiring market share from the Big Three.

The first major risk for the auto industry in general is that of global warming and a growing concern for environmental issues among consumers. This is a risk that is spread among the entire auto industry, not just Ford Motor Co. Consumers are becoming more aware of the impact the auto industry has on the environment, and making their purchasing decisions with that on the criteria.

Another factor involved with the auto industry, is a pressure on the companies ability to increase prices. Due to excess capacity and the ability of Japanese and Korean auto manufactures to mass produce and thus lower cost prices, many companies in the auto industry are producing vehicles at little to no profit due to the inability to raise prices.

A major risk or concern for North American auto makers is the employee's health care expenses. For Ford, in 2006 their health care expens...


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... understand the process, and the in's and out's of what is needed and wanted for a car, who also have good business sense.

So what does this say about the future of Ford and the auto industry? If Ford wants to survive past the next 10 years, restructuring is crucial. The risk factors outlined are proven to be risks, but they are factors that can be overcome. The companies that have overcome the greatest amount of these factors (the foreign companies) are showing higher profits, and are overtaking the traditional auto manufacturers. If Ford can move quickly, strategize, and eliminate these factors, they will possibly be able to regain their position at the top, but they need to not rely on their brand name, and pay more attention to what the consumer wants and needs


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