Ford Motor Company SWOT Analysis

The Ford Motor Company is an American multinational corporation which was founded by Henry Ford in 1903. It is one of the largest auto makers in the world. The company is a producer of cars and trucks and it operates under two segments: Automotive and Financial Services. Ford Motor manufactures or distributes automobiles across six continents. It employees 159,000 people and has 70 plants worldwide. In order to have better understanding of the company’s current position, the SWOT analysis is given below:

Strengths

1. Ford is the pioneer of methods for large-scale management of an industrial workforce and large-scale manufacturing of cars using highly engineered manufacturing chains typified by moving assembly lines.
2. Ford Motors is presently the second biggest automaker in the U.S. and the fourth-biggest in the globe based on number of automobile sold annually.
3. By the end of 2009, Ford Motors was the third biggest automaker in Europe.
4. The company has globally strong presence. It manufactures and distributes vehicle crossways six continents.
5. Ford Motors is one of the heaviest investors in Research & Development within the automobile industry.
6. Ford Motors is the seventh-ranked whole American-based Corporation in the 2008 by Fortune 500 catalog, based on worldwide revenues in 2008 of $146.3 billion.
7. Ford’s distribution network is one of the biggest networks in the world. It is geographically distributed and most diverse in the auto industry by having 45 distribution centers and 9,500 dealers globally.

Weaknesses

1. Ford Motors revenue decreased by approximately 19% in FY09 as compared to FY08.
2. Ford recollected 527,000 Escape sport utility automobiles due to engine fires connected to the anti-lock footbrake connectors. This was a main safety risk for consumers and it also ruined the image of the company.
3. For the last few years Ford Motors market share decline continuously in the United States.
4. Ford Motors is not able to respond well to the competition from European and Japanese manufacturers.
5. Weak financial position after financial and automotive industry crisis also results in low stock prices.
6. Ford was forced to mortgage its factories and even its blue oval logo to borrow more than $23 billion in 2006 and 2007. The payment of this debt is also a burden for the company.

Opportunities

1. Produce fuel-efficient, smaller, and higher-quality models that can attract the consumers.
2. Chinese government condensed automotive taxes in order to encourage declining sales.
3. In February 2009; citing declining manufacturing numbers, the State Bank of India decreased interest rates on automotive loans.
4. Establish or Equip facilities to manufacture ‘advanced technology vehicles’ that would meet up certain fuel economy and emissions standards.
5. One of the big opportunities is to shift manufacturing to other amenities in order to produce in-demand vehicles. Manufacturing could be done in those countries where the labor as well as material cost is low. 
6. Diversification in other related and unrelated products or shifting to the hybrid electric engines.
7. The purchasing power of consumers is increasing due to end of financial crisis 2007-10.

Threats