Scribd
Upload
546 views32 pages

Ford Motors

Henry Ford built his first vehicle in 1896 and went on to found the Ford Motor Company in 1903. Ford introduced the affordable and popular Model T in 1908. Today, Ford is the fifth largest automaker globally and generates over $3.7 billion in annual revenue with 175,000 employees worldwide. Ford's vision is to become the leading automotive company through offering exciting and viable vehicles.

Uploaded by

Taha Madni
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
546 views32 pages

Ford Motors

Henry Ford built his first vehicle in 1896 and went on to found the Ford Motor Company in 1903. Ford introduced the affordable and popular Model T in 1908. Today, Ford is the fifth largest automaker globally and generates over $3.7 billion in annual revenue with 175,000 employees worldwide. Ford's vision is to become the leading automotive company through offering exciting and viable vehicles.

Uploaded by

Taha Madni
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 32

History of Ford

 Henry Ford built his first vehicle Quadricycle at his


home in Detroit in 1896.
 In 1901, He founded his own company Henry Ford Co.
 In 1903, Ford & MALCOMSON was reincorporated as
Ford Motor Co.
 Ford manufacture his first racing car Ford
model ‘999’ which give him fame.
 In 1908, Ford Model-T was introduced.
 Ford offer public cars in market at $850 while
other companies selling it to minimum of $1800.
About the Company

 Fifth largest automaker in the world based


on sales.
 Head quartered in Detroit U.S
 Public limited company from 1956.
 Revenue earned in 2018 is US$3.7 million.
 Number of employees 175,000 worldwide.
 Divisions: Ford, Lincoln, Motorcraft-1972.
 Ford have 65 plants worldwide.
Ford Motor
Company

Mission, Vision
Ford’s Vision
To become the world’s leading consumer company for automotive
products & services.

Ford’s Mission
 One Team:
People working together as a lean, global enterprise for automotive
leadership.
 One Plan:
Finance our plan & improve our balance sheet.
 One Goal: An exciting viable Ford delivering profitable growth for all.
Corporate Structure
William Clay Ford, Jr. James P. Hackett
Chairman since 1999. CEO since 2017

 Ford Motor company has 17 board of directors.


 Ford has traditional corporate hierarchy in its organizational structure.
 Ford has three regional geographic divisions in its organizational structure.
1) Americas, 2) Asia pacific, 3) Europe, Middle east & Africa.
 Ford has functional groups in its structure. (e.g legal, finance, communications,
global purchasing, global product development, accounting & some others)
Products Line

 Automobiles
 Trucks
 Buses
 Tractors
 Automotive parts
 Vehicles leasing
Ford Own’s
 Ford Motor Credit Company (LLC) since 1959
(financing products)
 CHANGAN Ford Automobile Corporation Ltd. Since 2012
(Engine & assembly plant)
 Auto Alliance (Thailand) Co. Ltd. Since 1998
(compact trucks ,passenger cars)
 GETRAG Ford Transmissions GmbH since 1935
(German based Produces manual transmission for Ford automobiles.)
 Ford Motor Land Development Corporation. Since 1970
Ford Motors FDI

 Ford of Argentina. (1913 offer Ford Focus & Ranger)


 Ford of Canada. (1904, offer vehicles & leasing, auto parts & finance)
 Ford of India. (1995, automobiles)
 Ford of New Zealand. (1936, automobiles)
 Ford of Philippines. (1997, Automobiles, pickup trucks, SUVs,)
 Ford of south Korea. (1967, partner with Hyundai, automobiles, luxury, parts)
 Ford Lio Ho Motor. (972 in Taiwan, 70% by Ford, 30% by investors in Lio Ho
automotive industrial corporation)
 Ford of Australia. (1925, automobiles)
 Ford of Brazil. (1919, automobiles, focus, ranger, edge, courier)
 Ford of Europe. (1967, automobiles)
Pricing of Ford Models:
Ford Intensive growth strategy

 Market penetration
(selling more product to current customer)

 Product development.
(secondary strategy offer new products to grow sales)

 Market development.
(minor intensive strategy for Ford’s growth because Ford already
has global operations)
SWOT Analysis

Strengths:
 Brand image & Equity (34.92 billion USD)

 Strong R&D (performance, satisfaction, innovation, $8 billion cost)


 Strong manufacturing capabilities. (61 manufacturing facilities)
 Large product portfolio. (SUVs, luxury, commercial, motorcraft,)
 Strong position in US & China market. (2.6 million units, 1.2 million)
 Strong financial position. ($4.6 billion to $7.6 billion profit 2018)
 Strong marketing capabilities. ($4.1 billion expense)
 New technologies. (six speed transmissions, hybrid powertrains ,
cabin technology, to enhance quality)
SWOT Analysis

Weaknesses:
 Product recalls.
(2018 recall 550,000 vehicles due to gear shift problems in escape, fusion
models, safety failures, airbags, brake master cylinders

 Emerging Markets.
(not strong in India as in U.S, In India only 100k units sale)

 Weak brand portfolio.


(VW 12, GM 11, Toyota 4)
SWOT Analysis
Opportunities:

 Expansion. (investing $2.5 billion in engine, transmission plants in Mexican


states, increase their daily production capacity.

 Electrical vehicles. (Ford created team Edison, joint venture with Zotye in
china, it will grow in near future)

 Digital marketing. (digital channels to engage customers, suppliers)


 autonomous driving. (most brands focusing on it, Ford plans by 2021)
SWOT Analysis

Threats:
 Competition.
( Toyota, G.M, VW, Nissan, Hyundai, Honda)

 Environmental regulations.
(from govt, safety features, how effect environment, fine if
not compliant.

 Global Economy.
(facing slow down, currency fluctuations, Ford needs to keep
prices of vehicles in check)
PESTEL Analysis

Political Factor:
 Governmental support for technological innovation.
(opportunity, governmental incentive, enhance economic condition)
 Increasing international trade agreements.
(opportunity, make it easier to enter in foreign markets)
 Increasing governmental effort for infrastructure in developing
countries.
(opportunity, improving infrastructure increase demand for vehicle)
PESTEL Analysis

Economic Factor:
 Growth of U.S economy.
(opportunity, to grow in biggest market)
 High growth rate of developing markets.
(opportunity, where company still has limited presence)
 Strengthening U.S dollar.
(threat, that reduces profit margin, attractiveness of products, many
firm’s raw material & parts produced in U.S)
PESTEL Analysis

Sociocultural Factor:

 Increasing demand for electric automobiles.


(opportunity, can grow by meeting customer demand)
 Moderate attitude about customer service.
(opportunity, improve its services to attract more customers)

 Increasing wealth gap.


(threat & opportunity, product innovation to meet changing
customer preferences)
PESTEL Analysis
Technological Factors:

 Rising use of mobile computing.


(opportunity, grow through mobile service support & mobile marketing)
 Increasing use of online fulfillment services.
(opportunity, Ford auto parts can be delivered to customers through
these fulfillment services)
 Limited network of alternative fuel stations.
(threat, due to this Ford’s potential growth in providing alternative fuel
vehicles may suffer)
PESTEL Analysis

Ecological Factors:

 Climate change.
(opportunity, Ford can grow through products that help in environmental
conservation)
 Declining oil reserve.
(opportunity, Ford can offer new products that use alternative fuels
or electricity)
PESTEL Analysis

Legal Factors:

 Environmental protection regulation.


(opportunity, can improve business sustainability )
 Increasing safety regulations.
(opportunity, can improve product design)
 Increasing intellectual property laws worldwide.
(opportunity, by creating more protection for their intellectual properties)
Marketing Mix 4P’s
Product
 All the Ford products are localized made with a concept to match
the local driving conditions emphasizing on durability & less
maintenance cost e.g Ford escort in India then change to Icon.
 To satisfy the needs of every consumer the company launched
economy, luxury, sports, vans. Ford Fiesta focus on females &
young generation.
 Ford uses regiocentric approach in USA & Europe. In remaining
portion of world it uses polycentric approach.
Marketing Mix 4P’s
Place

 Ford introduced the concept of manufacturing at large scale


with an industrialized work force.
 Ford’s manufacturing plants are in six continents with worldwide
factories & dealers.
 For the retail market the dealership network has been made
strong and easily accessible. It has world wide auto parts stores
and have Ford parts website.
Marketing Mix 4P’s

Price

 Market oriented pricing strategy.


 Premium pricing strategy
Marketing Mix 4P’s

Promotion:
 Electronic advertising
 Sales promotion
 Public relations
 Personal selling
 Direct selling
Porter’s Model Five Forces

Competitive rivalry
The following are the external factors that contribute to the strong
force of competitive rivalry against Ford:

 High aggressiveness of firms. (strong force)


 High exit barriers. (strong force)
Porter’s Model Five Forces

Bargaining Power of Buyer’s


The external factors that contribute to the moderate bargaining
power of Ford’s customers are as follows:

 Moderate switching cost.


 Moderate size of individual purchases.
 Moderate availability of substitutes.
Porter’s Model Five Forces

Bargaining Power of suppliers


The following external factors contribute to the moderate
bargaining power of suppliers:

 Moderate overall supply


 Moderate population of suppliers
 Low forward vertical integration.
(Ford River Rouge complex, material)
Porter’s Model Five Forces

Threat of substitute
The following external factors contribute to the moderate
threat of substitution against Ford:

 Moderate availability of substitutes


 Moderate switching costs
 Low performance of substitutes
Porter’s Model Five Forces

Threat of new Entrants


The external factors that contribute to the weak threat of
new entrants against Ford are as follows:

 High capital costs


 High cost of doing business
 High cost of brand development
Financial Analysis
CSR

You might also like