Ford and the World Automobile Industry Case Analysis
Autor: mucerio • February 12, 2017 • Case Study • 1,241 Words (5 Pages) • 1,513 Views
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Ford[a] and the World Automobile Industry [b]in 2012
HongRui Mao
Park University
Ford and the World Automobile Industry Case Analysis
Following the prices of crude oil increased, Ford and the world automobile industry was starting to have challenges in 2004. The market demanded are looking for the smaller and more fuel efficient vehicles. However, the automobile industry product line was primarily focused on the sport utility vehicles and trucks which are gas guzzlers. The gas guzzlers have high profit margin but it’s not suitable for the current market demand. This condition made the US automobile industry to be weak, because their main production is gas guzzlers. The US automobile industry couldn’t forecast the effects of oil prices which created the challenges to all automobiles [c]industries[d].
Porter’s(1980) five forces framework which focuses on the industry outlook as a way of assessing a firm’s competitiveness was used to analyze Ford’s external environment. The five forces framework could find the competitive rivalry, threat of substitute products, threat of supplier, threat [e]of buyers, and threat of new entrants.
Competiti[f]ve rivalry
Ford has many competitors in the auto industry. Toyota, GM, Nissan, Chrysler, and Honda, they are Ford’s biggest competitors in the global market. According to the currently market demand, customers are looking for smaller vehicles with high oil efficiency. Honda, Nissan and Toyota, they already created the low prices and better quality products especially by manufacturing small vehicles with increased fuel efficiency. These productions let the Ford to loss of the market share, Ford has the different product strategy, they are focused on the SUV and trucks, and [g]little effort on smaller vehicles. But Ford still has the strong market share in the UK and U.S., their vehicles are sharing the local markets. However, the strong competition will affect Ford’s international market share, and also will change their future strategies.
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