SWOT Analysis - Case Study Example

Ford Motor Company SWOT Analysis Ford Motor Company SWOT Analysis Strengths Ford has the strongest market share in the U.S. and set to rise to 18% in 2018 (Detroit free express, 2014).The brand name of Ford is accepted globally for the quality of the motor vehicles they make.The company has existed and served its customer for a long time since its inception by Hendry Ford in 1903.The company has had history of good financial performance and has not received any bailout from the government (Guenette, 2012).

WeaknessesThe company’s operations in parts of Europe are not profitable. It is estimated to have lost £1.1 billion due to fall of sales by 15.5%. The loss is due to the economic crisis that hit parts of Europe (daily express 2013).The company maintains high cost of structure than any other automaker in the U.S. due to high compensation to its employees (Guenette, 2012).OpportunitiesThe customers are well aware of environmental degradation brought by pollution caused by fuel inefficient automobiles.

The company is encouraging a move to greener technology by creation of fuel efficient cars.Ford motor company is present in emerging markets especially parts of Asia. This will give them a significant growth in years to come due to demand of automobiles by middle class in the emerging markets. The recall of motor vehicle by GM is an opportunity for Ford motor vehicles to gain more market share. GM recalled 8.4 million vehicles with faulty ignition key (General Motors, 2014).Increasing cost of Fuel is an opportunity for Ford to create fuel efficient vehicles such as the ford fiesta.

Ford partnership with Asian automakers increases its competitive advantage and increase of market share (Guenette, 2012).ThreatsThere is high competition from Asian automakers such as Toyota that makes cheap and fuel efficient vehicles.The company is faced by increasing cost of raw material. High cost of raw materials is affecting the profits. The move by population to public means of transport such as buses and trains due to increasing cost of fuel (Guenette, 2012).Ford Motor Company Competitive AdvantageThe company has gained more trust from customers and increased market share because unlike its competitors, Ford has not received any funding from the government.

Ford motor company is focusing on production of fuel efficient vehicles such as Ford Focus ECOnetic. The move will increase sales from the customers who are already moving away due to the high cost of fuel. The most significant elements on SWOT for future marketing strategies are greener technology and engineering of the most fuel efficient automobiles. The above elements will motivate customers to buy the company’s cars because they are environmentally safe and use cheaper fuel.ReferencesDaily Express. (2013). Poor European sales dent Ford.

Retrieved from http://www.express.co.uk/finance/city/374408/Poor-European-sales-dent-FordDetroit Express. (2014). Report: Ford will gain market share; GM, Chrysler will stay flat through 2018. Retrieved from Guenette, R. (2012). Ford: Strengths, Weaknesses, Opportunities, Threats. Retrieved from