SWOT Analysis of Ford

SWOT Analysis of Fordhttps://bstrategyhub.com/swot-analysis-of-ford-2019-ford-swot-analysis/BackgroundBasic InfoCEOJames HackettYear founded1903HeadquarterDearborn, USANumber of Employees199,000Strengths – Internal Strategic FactorsWeaknesses – Internal Strategic FactorsOpportunities – External Strategic FactorsThreats – External Strategic FactorsProducts & ServicesCars| Suv and Crossovers | Trucks and Vans | Hybrids and Evs | Commercial Vehicles | Future Vehicles | Fleet VehiclesCompetitorsFun FactDid you know that Ford is the second largest family-owned company in the world?General Motors Company | Toyota Motors | Tata Motors | Daimler | Hyundai Motors | Honda Motor Company| Tesla Motors | Volkswagen | Renault Group | Fiat Chrysler Automobiles | Nissan | Group PSA | Geely Group | MarutiGlobal RecognitionFord is a well-known brand in the automobile industry and is also recognized in the global markets because of its success in marketing and advertising. Its brand value is $12.74 billion according to the 2018 report of Statista.Research and DevelopmentFord’s research and development is one of its key strengths because the company is committed to make and develop new products. They are continuously trying to improve the performance of their vehicles. The factors that are evaluated include fuel, efficiency, safety, and customer satisfaction.Diverse OfferingsFord caters to all kinds of demographic groups with their diversified brands and car models. They take care of the needs and wants of their consumers by providing them with more variety of cars and commercial vehicles.AdaptabilityFord has a wide product and services portfolio which gives them strong leverage and less dependency on just one product range. Their commitment to adopting new technologies also gives them a boost in the competitive automobile market. They are also working on light weighting, cabin technology, and powertrain to enhance their product quality.Huge NetworkThe company is also diverse in its operations and distribution, as they have a manufacturing presence in 62 countries across the world. Ford develops its cars on standardized procedures. They also invest heavily in various fuel sources.Product RecallsFord faced a huge loss and their brand image suffered due to the product recalls back in May 2016. They recalled approximately 830,000 Ford and Lincoln vehicles to replace faulty side door latches. It also recalled vehicles in May 2015 because of the safety failures of Takata airbags.Weak FootholdAs Ford’s operations are diversified in many geographical areas, they lack focus in performance and productivity. They do not have a stronghold in emerging markets like India.Poor ReputationFord has a poor reputation compared to its European and Japanese rivals. Lincoln, in particular, is considered an inferior brand as compared to English and German luxury car brands.Dependence on U.S MarketsFord is highly dependent on the U.S and European market. It limits its profits and revenues. Experts predict that the majority of future car sales will come from emerging markets such as China and India.Eco- Friendly VehiclesAs Ford is already trying to be technologically adaptive, they have a fantastic opportunity to produce fuel-efficient cars and commercial vehicles. For example, they can build vehicles that run on different forms of energy. In this way, they have more options in designing eco-friendly vehicles. The 2018’s C-Max and Fusion Hybrid car model can be their most significant opportunity, as they have already captured the market with this new model.Increase Customer BaseFord is already working on penetrating the automobile market in India and China, they have an excellent opportunity to tap into other small countries in the world and grow their customer base.Digital MarketingDigital marketing is prevailing all over the world these days, so Ford has an opportunity to work on their digital marketing skills to grow its customer and supplier engagements.Self-driving carIn 2017, Ford has invested $1 Billion in Artificial intelligence company, Argo AI, to develop its self-driving technology. In addition, Ford has partnered with Walmart and Postmates to test the future of grocery delivery.High CompetitionFord is already facing cut-throat competition from its rival companies like Toyota, Tesla, and Tata. Ford keeps struggling to maintain its innovative position in the industry.Increased Prices of Raw MaterialsThe rising raw material prices of steel and steel coil can directly affect the company’s cost and profit margin.Regulations and complianceThe compliance and regulatory threats for automobile brands have increased in the past years because of environmental improvements going around the world. Vehicles are now inspected for public safety and quality issues. Ford can face serious challenges if it fails to comply with the new regulations.RecommendationsAs Ford is manufacturing in various countries, they should try to improve their operations department by increasing efficiency and hiring the right employees and labor.Ford should start producing more eco-friendly vehicles because the demand for these kinds of vehicles is growing all around the world.Ford can partner up with Uber and other app-based vehicle services to grow its revenue and customer base.