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Swot Analysis Of Ford

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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.
 Ford is excellent in the manufacture and marketing of light weight commercial vehicles, particularly vans. The demand for commercial vans is growing because of the elevating demand for delivery service created by growing e-commerce.

Ford’s Weaknesses
 Failure to match the production capabilities or sales volume of the top five automakers: Toyota, Volkswagen, General Motors, …show more content…

These could create newly markets for vehicles.
 Increased levels of e-commerce, which would elevate the demand for light commercial vehicles that are used for delivery purposes. Ford manufactures one of the most popular delivery vehicles: the Transit Connect work van.

Threats to Ford
 The growing presence of German automakers in the important North American auto market, particularly Volkswagen and Toyota. Toyota is now competing directly with Ford in the pickup truck market, and Volkswagen is considering entering that market. Mercedes and Nissan are now fighting directly with Ford in the commercial van market.
 Some companies have an advantage in alternative fuel vehicles. Toyota and Honda are ahead in the production of fuel cell vehicles. Volkswagen has more expertise in electric cars.
 Widespread adoption of electric vehicles could force costly upgrades to plants and costly changes to dealerships. This could reduce Ford’s profits.
 Lesser fuel prices could limit demand for costlier alternative fuel vehicles such as hybrids and electrics.
 The Volkswagen fraud could limit the demand for diesel-powered vehicles, including the Ford …show more content…

Ford Motor Company’s SWOT Analysis – Recommendations
The main issues highlighted in this SWOT analysis of Ford are limitations in speed of innovation and scope of its production network as well as much competition with existing firms and new entrants. Ford needs to improve on its research and development investments and elevate its innovation speed to address tough competition and the entry of high-tech firms in the industry. Also, Ford needs to expand its production network to increase economies of scale, which can lessen the costs and prices to make Ford automobiles more

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