Strengths 1. Ford is the oldest car manufacturer with experience and market reputation 2. Diversity of car models and features to meet demands of customers 3. Exclusive features that are highly acceptable by all targeted segments 4. Investments in green technology as an environment policy 5. With more than 160,000 employees worldwide 6. Has access to major markets with presence in all continents 7. The brand is an active player in major Motorsports events 8. Several payment process options to satisfy all customers | Weaknesses 1. Liability of the company has greatly increased more than its assets 2. Issues of customer satisfaction as reported by its customers 3. Issues of product life cycle wherein product lines only get going until replaced by new ones, thereby cancelling aims of complementary sustainability 4. Inventory problems of distributors and dealers 5. Ford was affected by the Euro crisis and the global market recession 6. Ford is not yet greatly appreciated and active in most emerging markets |
Opportunities 1. Growth and expansion of the automobile industry 2. Improvement of the business environment as the customer base increases or widens 3. Utilization of models that are exclusively targeted for specific markets 4. Increase of "green" car enthusiasts 5. Diversity of its car models allow it to introduce new cars from time to time 6. Strategy of acquisition of car manufacturers and brands that are losing market grip | Threats 1. Growing competition from major car automakers and international brands 2. Increase of the usage of mass public transports and the direct impact of government policies to curb traffic problems 3. Increased fuel cost creating problems for consumers in buying cars 4. Labor and other issues also affecting local plants of Ford 5. Increased car insurance and interest of other financial needs of customers |
Ford has maintained its market strength over the past century of operation. According to Ford Motor Company (2012), the small vehicle mix of the company will continue to grow with the large vehicle mix of the company will remain a great part of the sale volume of the company. With the diverse range of products that Ford produces, there are questions on how well the company can dispose the numbers of cars under its inventory. With the expansion of the global automobile industry and the appreciation of green cars, Ford Motor Company expects to strengthen its positions across market segments that it has stakes on. But this will only be achieved if threats such as the increased of fuel and the plant issues of Ford will be mitigated.
One of the major automobile industry mergers that pushed through (though already divorced back in 2010) is between Mazda and Ford. When Ford merged with Mazda, the question was the merger capable of achieving economies of scale (Dash, 2010). Prior to the merger, Mazda was struggling in penetrating the market. With Ford's introduction into the Mazda operation, Mazda was able to harness the potential of its small-car design and engineering.
On the other hand, to achieve economies of scale, Ford was able to utilize plants of Mazda that in Japan to avoid the high cost of labor in the United States. In the same manner, Ford was able to gain the advantage of using the small-car design of Mazda. In terms of market scale, Ford was able to increase the scope of its products, thus providing cheaper priced cars compared to its mainstream models. This expanded the targeted market of Ford. As a result of this, Ford is able to take advantage of consumer behavior moving toward smaller cars. This also expanded the geographical scope of Ford's market.