Ford Market Analysis MGT 4380 Blake Preston Mason

Getting to know Ford Motor Company ● Founded by Henry Ford in 1903 ● Headquartered in Dearborn, Michigan ● Assembly line and vertical integration have been major keys to success ● Over 212, 000 employees at plants and facilities worldwide

P. E. S. T. Analysis Political - Governmental Support / International Trade Agreements Economic - Growth of U. S. Economy / Strengthening of U. S. Dollar Social - Inc. Demand for Electric & Hybrids / Increasing Wealth Gap Technological - Technological Enhancement / Alternative Fuel Network

P. E. S. T. - Political ● ● Governments aim to retain and grow industries Political stability usually means economic stability Government attitudes Government regulations ○ ○ ● ● Changes in design Increased cost Safety features Fuel economy standards Emission standards Government bailouts

P. E. S. T. - Economic ● ● ● The automotive industry is an important influencer on economy Economic growth means more automobile buyers Higher sales in developed countries Inflation and rising interest rates are deterring average consumers Oil dependency Infrastructural development

P. E. S. T. - Social ● ● ● ● Trends Cultural forces Environmental impact Brand power Demographics Impact on lives Help in the development of nations

P. E. S. T. - Technological ● The automotive industry is a leader in innovation ● Development of electric cars and the decreasing cost of electric car batteries ● Autonomous driving technology ● Environmentally friendly technology ● Creating safer vehicles

Industry Description and Outlook ● ● ● ● Large and highly competitive industry Few majors players control large shares of the markets Rapid expansion following the 2008 - 2009 recession Steady decline beginning in 2017 Rise in auto loan delinquency rates Marketing shift to high wealth individuals Sales of trucks, suvs, hybrid, and electric vehicles rising Industry thought to decline in 2019

Target Market / Size / Trends ● Ford does business in 62 different countries ● Ford offers a variety of different vehicle options to suit the lifestyle and needs of consumers around the globe ● Technology is a major area of focus ● Second Largest US based automaker ● Ford F-Series is top selling vehicle in the U. S. ● Ford Mustang and Focus only car/sedan available after 2018

Competitive Analysis Direct competitors - Other big name brand automotive companies - Fiat Chrysler Automobiles General Motors Company Toyota Motor Corporation Indirect Competitors - Substitute automobiles / transportation - Uber Different style vehicles

Competitors Strengths Market Share Research and Development Wide Product Portfolio

Competitors Weaknesses Dependence on US market Rigid hierarchical structure

Ford S. W. O. T Analysis Strength: ● Market share in cars and light trucks was 14. 8% August 2015, making it number two to General Motors ● Research and Development Ford is allowed a big budget to work on new technology. ● Ford’s market share was 7. 2% in 2015 ● Strong financial position reported free cash flow of $3. 477 billion in June 2015.

S. W. O. T Analysis Weakness: ● Product failures ● Inability to match the production capabilities or sales volume of the top five automakers ● Heavy dependence on U. S. and European markets. ● Poor performance in emerging markets. ● Blue collar/middle-class brand, makes it hard to market it to luxury buyers

S. W. O. T Analysis Opportunity: ● Self driving/autonomous cars ● Alternate fuel source; such as their existing C-Max Electric ● Emerging markets like China, India, and Mexico

S. W. O. T Analysis Threat: ● ● Increasing pressure from German and Japanese companies Competing companies have head start on alternative fuel source Reduction in amount younger generation is driving Uber, Lyft, and other ride sharing companies

Barriers to Entry / Regulations -Funding -Years of Research -Volume / Cost of Production -Channels of manufacturing / distribution

Projections NADA - Slight decrease in sales in 2019 New Age of Automobiles - In 2020 Ford plans to release hybrid F-series Fully electric, autonomous, and other hybrid cars

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