Ford Motor Company Swot Analysis

pass over Motor Company SWOT Analysis Strengths Timely acquisition of working capital makes get across more financially sound than the different Big leash carmakers. Product pull back is respected by industry experts and is qualitatively seen to be a step above many of its competitors. Recent surveys place ford in a tie with Toyota for greatest customer satisfaction, a operative improvement from five years ago. Have a global tradeplace front end, with worldwide brand recognition and a particularly strong presence in Europe. Is perceived to be a thoroughly American brand, which helps hybridization among certain groups of consumers. U. S. market partake in, after years of decline, has stabilized in young years. The hybridisation F-series pickup tolerates the most respected commercial truck available despite demand shifts, profitability on this line should remain high. Ford has had great success, particularly when compared to its competitors, at renegotiating labor con tracts with the UAW. Weaknesses Poor profitability Ford still loses money on many gondola lines, particularly within the United States. Importance of single components source (Visteon). The automotive market is highly competitive with large fixed costs. In addition, the market demands unceasing long term planning and research and development. Very little market penetration within china and India. Global excess capacity for the automobile industry is estimated to average 30. 5 million vehicles per year from 2009-2011. 9 Ford is selling a durable good during the most severe sparing downturn in recent history. Opportunities Ford has recognized the importance of small, raise efficient vehicles and is actively transitioning into this market.Of particular interest is Fords EcoBoost technology, which the caller-up claims will result in 20% greater fuel efficacy and 15% fewer CO2 emissions. The One Ford deal has the fate to generate significant margin increases for Fords smaller l ine of vehicles. Of particular importance is the Ford Fiesta, which was recently released in Europe and China and is slated for an early 2010 release in North America. The One Ford vision appears to be a coherent strategy for Ford to adopt apt(p) its changed role within the industry. Ford is perceived to be the most abiding American car manufacturer because it has not been forced to take bailout money, guide to slight increases in market share. GM and Chrysler flexibility is limited by government involvement in their debt situation, putting Ford as a competitive advantage. In the event of a GM or Chrysler bankruptcy, Ford has placed itself in a position to steal market shareat least in the short term. Threats objet dart not in need of a government bailout, poor financial results are whirl Fords capital.Cash burn continues unabated, and estimates indicate Ford may be forced to seek government financing by early 2010 unless gross revenue stabilize. While Ford is readjusting exer tion, truck sales are falling promptly and Ford may not be able to shift production quickly enough to meet changing demand. Bankruptcy of Visteon or other parts supplier could cause severe disruption of supply chain. While Ford has likewise many dealers at this time, it should remain wary of too many closures. In addition, because Ford Credit provides financing for most dealers it essential be careful to avoid holding the bag when dealerships close.