Ford India Case Study

Ford’s Strengths  Firm position in the American auto market.  Ford’s biggest market is the United States, which has been doing better economically than the two other large markets, China and Europe, in recent years.  Very strong financial position.  Proven expertise in manufacturing, research and development and automobile marketing.  Strong network of dealership.

See the statistics below showing sales for VW in 2015 and 2016, the company has done well after changing their strategies. The statistic represents the number of Volkswagen vehicles sold in the United States in March 2015 and March 2016 sorted by segment. In March 2016, the German automaker sold some 119 vehicles under its Bentley brand. Volkswagen Group 's sales declined by around 3.7 percent in March 2016, compared with February 2015 In November 2010, Volkswagen for the first time made more cars than Toyota. However, Toyota still sells more vehicles each year but the gap has narrowed down to less than 1.5 million cars.

In U.S., traditionally known as the core market, GM was selling less and less cars even since 2000 (The New York Times, 2009) and lost one third of its position, covering 28,1% share in 2000 and only 19,8% in 2009 (figures for cars and light trucks sales in U.S., Canis et al. 2010). From today’s point of view it could be surprising that GM still holds its leading position in

The business outlook at Tesla Motors, Inc. (TSLA) is intriguing. While the electric vehicle manufacturer has reported operating losses in every year since its IPO, the company has certainly been exciting auto enthusiasts. Much of the recent interest in the company is due to the introduction of its lower-priced Model 3, a car that could boost the auto maker’s production output by five or even tenfold in the coming years. As an investment, Tesla is an interesting selection, as well. While sales growth has been explosive, the company still isn’t making money.

This shows that Ford Motor Company had a high volume of sales in 2014. Similarly, General Motors Company had sales of 155,929,000,000 and inventory of 13,642,000,000 giving an inventory turnover of 155,929,000,000/13,642,000,000=11.43 (General Motors Company, 2015, pp. 28, 68). General Motors ' inventory turnover is lower than Ford Motor 's but is still pretty good compared to other automotive companies. Profit margin is another important ratio in the world of accounting that looks at the company 's profitability for the given timeframe (Investopedia).

They started out with providing customer satisfaction, which was not the trend in automobile sector during those days. They are credit to have brought a revolution in the sector, to be the first company to be a mass production company, and sell more than a million cars in a year. The company has 2 manufacturing plants in Gurgaon and Manesar, which have a joint production capability of 1.5 million vehicles annually. A third plant is being proposed to be functional very soon in Mandal, Gujarat. The company exports its vehicles to over 120 countries across the globe.

The manufacturing business is a great example of this, “manufacturing in the U.S. grew by 250,000 jobs after NAFTA”(Marketplace). NAFTA has had a beneficial effect on the automotive business, “NAFTA helped the U.S. auto industry survive”(Hanson), without the help of this trade agreement cars would be produced at a much higher opportunity cost. Although now, the U.S. is able to trade with Mexico and Canada who are both making car parts at a lower price while still producing efficiently, “The U.S. auto industry designed a very efficient production network that spanned the U.S., Mexico and Canada.”(Hanson). The trade agreement made products from Mexico and Canada cheaper to import.,“NAFTA increased farm exports because it eliminated high Mexican tariffs”(The Balance). Finally, The North American Free Trade Agreement has caused the U.S. economy to “boost” as much as “.5% each year” (The Balance).

Various initiatives taken by the Government of India and the major automobile players in the Indian market are expected to make India a leader not only in the Two Wheeler market but also in the Four Wheeler market in the world by 2020. Market Size In India Sales of commercial vehicles grew at 5.4 per cent to 52,481 units in the month of January 2015 from a year ago, according to the Society of Indian Automobile Manufacturers

In the year 2011, the company has generated revenue of 204.224 million which has considerably increased to 4.05 billion in 2015 (Marketwatch, 2016). It is expected that the performance of the company would further rise in the future in the automotive industry. However, the company is required to improve their net income in order to increase market share. (Figure 1) Tesla Motors Company has a unique position in the car market which forms the company’s biggest strength. The unique position of Tesla Motors is revealed on the fact that the company not only sells cars but also sells new technologies.

US auto industry is full of auto manufacturing companies, BMW Group, Chrysler/Dodge/Jeep, Ford Motors, General Motors, Honda/Acura, Hyundai/Kia, Mazda, Nissan, Subaru are the main competitors in US Auto market. For 2012 as a whole, automakers sold approximately 14.5 million vehicles in the U.S. Market, a 13 percent increase from 2011 and the highest annual sales total since 2007 marking the third consecutive year of annual sales increases of at least 10 percent. As fuel prices remain high and there is greater concern for the environment, more energy efficient cars are increasing in demand. Global automobile sales forecasts project divergent market penetration rates of approximately 0.6 -0.9% for plugin hybrid electric vehicles (PHEVs) by 2015,