Ford - Competitive Analysis

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To start this assignment, I am providing a SWOT analysis of Ford, which will highlight the company's strengths and weaknesses over its competitors in the automobile industry and will also highlight the major challenges faced by the company.

SWOT Analysis of Ford Motor Company:

Strengths:

1) One of the oldest, largest and most admired brands in the world with presence in over 200 different markets across six continents.
2) A very strong portfolio of reputed brands in different segments of the automobile industry, such as Ford, Aston Martin, Jaguar, Lincoln and Volvo.
3) Loyal customer base in product segments such as SUV's and Pickups.

Weaknesses:

1) Extremely high cost of operations as compared to other efficient and leaner car manufacturers like Toyota, resulting in significant pressure on cost related and operational issues. Such issues have forced the company to close many of its plants and lay off a significant portion of its workforce.
2) Declining market share in its major market, ie, USA, due to severe competition from other progressive and efficient foreign car manufacturers like Toyota and Honda.
3) Declining market share has led to overcapacity in many of its plants.
4) Customers shifting their focus from large vehicles such as less fuel efficient SUV's and shifting to smaller and more efficient cars, thereby hurting the growth in one of the most profitable business division of the Ford, ie, its flagship SUV's and pickups.

Opportunities:

1) Growth opportunities in fast growing emerging nations or markets such as India and China due to increasing demand for vehicles by the consumers of these nations, which can be tapped by the company to offset its decline in market share in countries like USA.
2) Opportunities to tap the growing hybrid car segment.

Threats:

1)Extreme competition from other foreign manufacturers like Toyota and Honda that are much more efficient in terms of cost of production and operations and produce much more efficient cars.
2) Declining market share resulting in closure of multiple ...