Automobile Industry
Introduction
Ford is the second largest company in the sale of automobiles in the United States and ranked as the fifth company globally in the sale of vehicles during the year 2010. With its Headquarters in Michigan, Ford Company is one of the leading multinational corporations in America and specializes in making automobiles. It was founded by Henry Ford and basically it sells automobiles and vehicles by the brand Ford and sells luxurious cars as well by the brand Lincoln. Ford Company is in the process of going green with the aim of conserving the environment and the natural resources as well. The company has introduced vehicles which consume gasoline and natural gas instead of carbon fuels which are not environmental friendly. The company has come up with vehicles which consume ethanol but it is a challenge to people who got these vehicles since the fuel stations are less compared to petrol and diesel stations. This makes customers prefer vehicles which use carbon fuels since the fuel stations are readily available and accessible at any given place. The company together with Toyota has come up with electric hybrid vehicles which can use both electricity and gasoline and are environmentally friendly though very expensive thus discouraging customers from purchasing them. The vehicles have low costs of maintaining them but the rate of sales is low compared to sales of vehicles which use the carbon fuels. Therefore this paper aims at studying automobiles in relation to the ford company focusing mainly on the production of electric cars and how the production of these green cars have impacted on the productivity and of the company.
SWOT analysis of Ford Company
The SWOT analysis of Ford Company is accessible to all investors so that they can understand Ford more and the automotive industry at large. Ford has a number of strengths which include it has a strong position in the American automobile industry. It is the second largest organization after General Motors (Anderson & Anderson, 2005). In addition the company has a number of car models which are not common in other companies such as Explorer SUV. Ford has proven to be an industry which carries out research and is an expertise in marketing and manufacturing thus its vehicles reach a wide range of people. It is therefore known for manufacturing the best vans which are mainly used for commercial purposes all over the world. Vans are being demanded lately since companies need to deliver services because the economy is growing at a high rate. The financial position of Ford is strong therefore indicating the company makes good profits and provides employment opportunities to most people all over the world.
The company has several weaknesses which have denied it the position of being the leading company in sale of vehicles globally. Ford has not been able to meet the sales made by its major competitors who are above it. Toyota and Volkswagen produce more sales compared to Ford indicating that the company is still lagging behind its major competitors. American auto products are considered inferior compared to automobiles manufactured by Japanese and Europe industries. Thus Lincoln is therefore considered to be poor quality compared to those cars from Japan and Europe (Anderson & Anderson, 2005). The company suffers since it does not relate well with the investors thus the company does not raise enough capital. In addition the company relies mostly on sales made from pickups unlike its competitors who are all round and sell all car types.
Ford has several opportunities which if carried out well will ensure the company outdoes its competitors. Ford has not been hit by the diesel consuming cars scandal which hit Volkswagen in America. Thus Volkswagen will lose its customers and on the other hand Ford will gain more customers since it will be trusted as a good company unlike Volkswagen which is hit by the scandal. Ford is growing its markets in countries such as China and India which previously relied on Japanese and European vehicles. Ford uses app based services such as Uber which will ensure its vehicles are marketable (Anderson & Anderson, 2005). E commerce is on the rise thus commercial cars such as vans are on demand indicating that Ford manufactures and delivers these types of vehicles.
Ford faces a number of threats which include the popularity of Japanese and German vehicles which are more preferred. Nissan is currently competing with Ford in the sale of commercial cars such as the vans (Westbrook & Institution of Electrical Engineer, 2001). In addition Volkswagen is popular in production of the best electric vehicles compared to Ford thus many people would prefer purchasing the cars from Volkswagen instead of Ford. When fuel prices become low, manufactures of electric cars will suffer losses since people would prefer using vehicles consuming cheaper carbon fuels and this will affect Ford. Most people currently do not prefer using private vehicles therefore the sale of vehicles will be low thus affecting manufacturing companies such as Ford. From the research carried out, new technologies such as Uber will overtake the automobile industries thus the demand for vehicles will definitely become low which indicates loses to the car manufacturing industries.
Production and manufacturing of electric vehicles will decrease growth and productivity of Ford since most people prefer electric cars manufactured by Volkswagen which is a Germany company. The sales of the electric cars are less compare to the production costs which indicates that losses can easily be incurred. Electric vehicles are the best vehicles since they do not cause environmental pollution but they are not affordable and accessible to all people because they are expensive. The fuel stations for natural gas and gasoline are rare thus people prefer vehicles which pollute the environment because they are cheaper and fuel stations are readily available (Anderson & Anderson, 2005). The vehicles inconvenience people at times since if they are not well charged, they can end up breaking down due to power problems.
Effects of industry issues and trends on Ford
Most of the automobile industries are now manufacturing carbon free vehicles as one way of promoting and ensuring sustainable development through conserving the environment. Volkswagen started manufacturing the carbon free vehicles earlier than Ford did thus it has established its markets globally unlike Ford. Many customers prefer buying the Volkswagen vehicles which is a German company rather than purchasing the American industry vehicles manufactured by Ford. This affects the image of Ford to the public since Ford will definitely make fewer sales compared to Volkswagen which people prefer most. Ford therefore needs to establish itself well in the global market if it wants to outdo its main competitors who customers prefer most. Unlike Ford, Volkswagen was involved in the diesel car scandal which was a win to Ford since most people would shift and purchase Ford carbon free vehicles since it was not involved in the scandal. The current generation is not much into purchasing vehicles thus the trend will affect sales of vehicles which will impact negatively on the profits generated by Ford. In addition, most people would prefer purchasing cheaper cars which consume carbon fuels rather than purchasing electric cars which are expensive and need to be charged from home which is an inconvenience to most people.
Ford’s key strategies
Ford ensures that it manufactures unique cars which are relatively lower in price compared to Volkswagens prices which are a little higher (Bryan, 2002). Coming up with unique electric cars is a strategy that has enabled Ford make good sales. Ensuring that the cars are of good quality has attracted new customers and retained the existing ones who now believe in the cars manufactured by Ford. Ford ensures it has qualified employees thus customers are served in the best way possible and the organization is run by skilled and qualified top management who are able to make the best decisions which promote generation of profits to the organization. Ford manufactures hybrid electric vehicles unlike other companies which are environmental friendly and are unique. C-Max is the latest model Ford is currently marketing since it is a hybrid electric vehicle which is unique and is not suspicious unlike models manufactured by Volkswagen (Kimes, 2004). The vehicles help curb air pollution since they are environmentally friendly thus does not pollute the environment compared to those vehicles that use carbon fuels.
Conclusion
From the discussion above, it is therefore right to conclude that production of electric vehicles has ensured that Ford remains successful as it competes with its main competitors. The company manufactures unique cars which are purchased by people globally who believe in environmental conservation and sustainable development at large. Regardless of Fords threats and weaknesses it still remains a leading company since it has good opportunities and strengths which help overcome the weaknesses and ensure it remains successful in the manufacture and sale of vehicles, especially the electric cars.
References
Westbrook, M. H., & Institution of Electrical Engineers. (2001). The electric car: Development and future of battery, hybrid and fuel-cell cars. London: Institution of Electrical Engineers.
Anderson, C. D., & Anderson, J. (2005). Electric and hybrid cars: A history. Jefferson, N.C: McFarland.
Kimes, B. R. (2004). The cars that Henry Ford built: A commemorative tribute to America's most remembered automobiles. New Albany, In: Automobile Heritage Pub. and Communications.
Bryan, F. R. (2002). Friends, families & forays: Scenes from the life and times of Henry Ford. Dearborn, Mich: Ford Books.
