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Swot Analysis for Ford Motor Company

Essay by   •  December 4, 2011  •  Case Study  •  1,320 Words (6 Pages)  •  2,708 Views

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Brief History of Ford Motor Company

The Ford Motor Company makes and sells many types of vehicles throughout

the world. According to New York Times (2011), "The Ford Motor Company, founded in 1903

by Henry Ford, is one of the largest auto makers in the world. During a time of crisis throughout

the auto industry in recent years, Ford emerged as the sole American automaker in a position to

survive the steepest sales downturn in decades without a government bailout. That helped the

company improve its reputation and win new customers."

Strengths

Ford has made numerous strengths to target an eco-friendly environment. "Ford is very

focused on improving its fuel-efficient portfolio as it looks to gain higher market share. It has

partnered with Toyota to co-develop hybrid vehicles. The hybrid vehicles will provide greater

fuel efficiency without compromising on performance, as well as develop in-car telematics and

Internet based services that can lead to a spike in car sales" (Team, 2011, Para. 4).

Ford has also partnered up with famous Entourage actor and co-founder of SHFT. Com,

Adrian Grenier to revolutionize the green movement. According to SHFT.com (2011), "SHFT is

a multi-media platform. Our mission is to convey a more sustainable approach to the way we

live through video, design, art, and culture." Ford and SHFT.com want to step it up and give an

opportunity to Americans to live eco-friendly and save money at the same time. According to

SHFT.com, "As part of the collaboration, Ford will sponsor a new SHFT web series that will

profile innovators and game-changers in the green movement.

The new electric Ford Focus will help lead the revolution toward automotive

sustainability. The electric Ford Focus is an amazing car that runs on electricity. The

interiors of the car are created bio-waste, mushrooms, and denim." This innovative electrical

car is an amazing step toward a healthier future.

Weaknesses

One of Ford's weaknesses for this year was vehicle recalls. "This year, Ford had to

recall more than 1 million pickup trucks. The purpose of the recall is that it has corrosion issues.

The corrosion issues can cause the vehicles to catch fire. The specific models that are affected

are the 1997-2003 Ford F-150, the 2004 F-150 Heritage, the 1997 to 1997 F-250, and the 2002 to

2003 Lincoln Blackwood. The recall affected customers in 21 states, Washington, D.C and

Canada. The vehicle recalls are in cold regions where the corrosion from road salt occurs a lot

more often" (Khouri, 2011, Para. 1-6).

Aside from corrosion issues recall, Ford had to recall also vehicles for airbag issues.

"Ford had to recall its popular F-150 pickup truck. The total amount of vehicles that had to be

recalled was about 1.2 million. The recalled vehicles had front-seat airbags that could inflate

without the vehicle being involved in a collision. Federal safety regulators reported at least 269

incidents. Unfortunately, more than a third of incidents resulted in injuries. These incidents made

it the most ever recorded in any inadvertent airbag deployment investigation or recall in the

history of the National Highway Traffic Safety Administration" (Hirsch, 2011, Para. 1-2).

Opportunities

There are many ways to invest opportunities with Ford Motor Company. According to

Forbes (2011), "Ford's car sales in North America has benefited from the global recovery in the

automotive industry as well as from its One Ford vision, which entails a focus on producing

more fuel-efficient products with better designs and launching them in global markets. These

steps have resulted in 22% year-over-year increase in Ford's Q1 2011 earnings and have also

boosted its market share. Year-to-date, Ford is the best-selling brand of vehicles in America with

sales totaling 1,700,618, up 17 percent. With this performance, the Ford brand is now on track to

increase its market share this year by about 1 percentage point - which would mark market share

gains for three consecutive years." Not only do customers have the opportunity to invest in

market share, but they also have the opportunity to live eco-friendly and save money on fuel-

efficient vehicles.

Threats

Ford always faces the threat of competition. Unfortunately, Ford is currently facing a new

competition. Ford's competition is the U.S. government. According to Sequim and Port Angeles

News Online (2011), "During the weak economy, Ford has actually managed well enough to

begin to survive a major recession without standing at the watering trough of Federal

government

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