Case Analysis Of Porter's Five Forces In The Automobile Industry

Porter’s five forces analysis Ford has survived for many years and will continue to do so. The threat of new entrants into the automobile industry continues to be ever present regardless of the substantial cost and very competitive environment. Ford is at a crossroads. Continue to monitor the existing competitors or monitor for those new entrants (Investopedia.com, 2014). New automobile manufacturers are a continuing threat for Ford such as if China decided to enter the automobile industry, a very powerful and flush with cash threat. Ford has significant leverage over its suppliers because of the limited customer base for their materials and the innovation of replacement materials as the technology develops (Investopedia.com, 2014). The power

Creating opportunities continues to be a very good tactic when developing competitive advantage such as by going into completely different markets such as Mitsubishi with air conditioners. Another way it can continue to survive and thrive is by downsizing and becoming even more lean and building better quality vehicles. Ford has started down that path with its new line of small automobiles. Alternative solutions would be to develop innovative technologies with new fuels, new engines, and lighter composites. Also, buy back its older models and recycle them into new vehicles that are environmentally friendly. Still another is to build really compact electric vehicles for large city use and extend its reach by building electric recharging stations. Definite changes to the current way that it does business, Ford can continue to change for the better. Ford had to change its conduct of business, restructure itself, and follow the technological trends that its main competitor, Toyota, has employed in order to regain its competitive advantage (Grant, 2010). Ford came into profitability by employing new technologies, reducing operational costs, and changing its culture, which has proven very successful (Grant, 2010). Moreover, today, it is still operating in the black and competing with the global automobile