Ford Motor Company Competitive Analysis Group 6 Blake

Ford Motor Company Competitive Analysis Group 6: Blake Hardy Preston Womack Mason Fletcher MGT 4380 -S 01 April, 17 th 2019

About the Industry ● Highly labor and raw material dependent ● Manufacturing of cars, parts, machinery, etc. ● Always adjusting to new trends, and ideas ● Companies are now branching in vehicle renting/ ride sharing ● OEM and Aftermarket manufacturing of accessories ● Beginning to slow down in the compact car/ sedan sales

What Influences Change in the Industry? ● New generation of customers ● New generation of Technology ● Outside forces ○ Ride sharing applications/ services ○ New vehicle trends (Truck/ SUV) ○ Government regulations of emissions ● Financial status of target consumers ● Fluctuations in environment for raw materials

Identify Your Competitors 1. General Motors Company a. b. c. d. e. Most of the competition stays in the United States Countless sub companies such as Chevrolet, Buick, Cadillac, Holden, and Wuling Have similar vehicles in their line-ups GMC and Chevrolet sell trucks that compete with Fords number 1 selling F-series trucks Largest market share in US; $1570 in 2018 income 2. Toyota Motors a. Largest world market share percentage b. One of the only non-US based companies to compete with Ford’s F-series c. Large investment in research and development helps keep an advantage 3. Chrysler a. One of the “Big Three” in US automotive industry b. Competes with Ford on sedans and Trucks through ownership of Dodge

Secondary Competitors 1. Daimler (Mercedes-Benz/ AMG, Smart) a. b. c. d. High quality Advanced Technology Luxury vehicles Sedans, Crossovers, Sports cars, & soon Trucks 2. BMW (Rolls-Royce, Mini) a. High Quality b. Sedans, Crossovers, Sports cars 3. Tesla a. All electric b. Luxury vehicles c. Sedans, Crossovers, soon Sports cars, & Trucks

Who Is Selling What You Sell? ● Oligopolistic market ● Top 10 automakers control over 70% of market ● 14 major corporations control a combined 62 auto brands ● Actions of one automaker significantly affect the decisions of others

Geographic Competition ● Ford competes in over 200 markets globally ● All Ford products are localized ● The United States is the world’s largest auto market ● Compete primarily on cost ● The “Big Three” ● Foreign competitors

Who Are Your Competitors Targeting? ● General Motor’s ○ ○ Has a wide range of product mixers Numerous brands such as GMC, Buick, Chevrolet, and Cadillac which target markets worldwide GMC and Chevrolet are companies geared toward a working individual Buick, and Cadillac are geared towards the more business, or family style automobiles, luxury type cars ● Toyota ○ ○ ○ Personal selling is done through the dealership and potential/actual buyers Advertising is utilized through mainstream media such as TV, radio, and other forms but also social media Corporate public relations is done through company sponsoring worthwhile or charitable organizations like the Toyota Together. Green program that supports environment initiatives

Ford SWOT Analysis ● Strength ○ ○ ○ Ford’s strength is derived from their brand, global operations, as well as their R&D Market share in cars and light trucks was 14. 8% in August 2015, making it number two to General Motors Their strong brand image is due to the fact they are one of the top players in the global market. ● Weakness ○ ○ Limited scope on their global production this limits them in their market expansion and market utilization Product failures Poor performance in emerging markets Had to shut down some of their plants within Europe ● Opportunity ○ ○ ○ Expand their market share by penetrating with more dealerships Improve market strategy Increase innovation and make it more efficient ● Threat ○ ○ Competitors hold a larger market share both globally and domestically Slow innovation

GMC SWOT Analysis ● Strength ○ The company's ability to accurately and effectively utilize the economies of scale ○ Production capacity which allows them to address/meet market demands ○ Development of new technology ○ Strong brand portfolio ● Weakness ○ Dependency on the U. S market ● Opportunity ○ Increase presence in developing and emerging countries ○ Utilize their subsidiaries ● Threat ○ ○ Government regulations and backing of alternative modes of transportation Competitors using new and emerging technology

Toyota SWOT Analysis ● Strength ○ ○ Research and Development which has led to some of the most innovative automobiles in the world Great brand awareness, between 7 th-9 th most valuable brand in the world ● Weakness ○ The company enforces a strict global hierarchy meaning all regional heads must report back to the organization’s global headquarters in Japan. ● Opportunity ○ ○ Expanding and increasing their presence within developing and emerging countries is a key opportunity to seize Toyota can increase their focus on fuel efficiency and began developing and incorporating new technology to aid with fuel efficiency. ● Threat ○ ○ Market threat by new companies that have lower cost production and automotive costs from companies in countries like Korea and China Rapid innovation creep from major competitors like GM and Ford leading to them being overtaken through innovation

Income Levels ● Marketing shift among industry ● Prices and interest rates rising ● New car sales falling ● Gap between new and used vehicles ● Pinpointing consumers with disposable income ● Ford’s product lines ● Lincoln brand ● Targeting strategy

Online Sales ● Buying an automobile is a painstaking process ● Tesla leading the charge ● Ready Shop Go ● Find Your Ford

Determine Where You Can Add Value. ● Focus resources on what part of the company is thriving ○ SUV’s ○ Trucks ○ Fuel-economy ○ Technology ● Looking into the future for advancements in products ○ Fully electric vehicles

Summary ● Many branches within the automotive industry; Vast market in each ● Significant research goes into each automaker’s vehicles to better compete ● Even unrelated vehicles can compete with each other in some way ● Always adapting to new generation of technology, and norms

Citations The Wall Street Journal, Dow Jones & Company, www. wsj. com/mdc/public/page/2_3022 -autosales. html. “Automotive. ” Competitive Analytics, competitiveanalytics. com/automotive. “Car Sales Market Share by Country, Manufacturer and Quarter. ” CSIMarket, csimarket. com/economy/Market_Share. php. “General Motors - Vehicle Sales Market Share in the U. S. 2018 | Statistic. ” Statista, www. statista. com/statistics/239607/vehicle-salesmarket-share-of-general-motors-in-the-united-states/. Gould, Skye. “These 14 Companies Dominate the World's Auto Industry. ” Business Insider, 15 Feb. 2018, www. businessinsider. com/biggest-car-companies-in-the-world-details-2018 -2. “U. S. Market Share of Automobile Industry. ” Statista, www. statista. com/statistics/249375/us-market-share-of-selected-automobilemanufacturers/.

Citations “U. S. Market Share of Automobile Industry. ” Statista, www. statista. com/statistics/249375/us-market-share-of-selected-automobilemanufacturers/. Bhasin, Hitesh. "Marketing Mix Of Ford Motor Company". Marketing 91, 2019, https: //www. marketing 91. com/marketing-mix-of-fordmotor-company-ford-marketing-mix/. "Competition In The Global Automobile Industry". Academicwritersbureau. Com, 2019, https: //www. academicwritersbureau. com/samples/221 -competition-in-the-global-automobile-industry. "Competitive Market Analysis And Positioning - Strategic Management: Ford". Sites. Google. Com, 2019, https: //sites. google. com/site/buad 467 ford/home/competitive-market-analysis.