Ford Case Study

GET HELP INSTANTLY

Place Your Question Here

Ford Introduction

Ford Motors is known for the provision of high quality automobiles and various automobile based hardware components. Some of the automobile models may include the Ford Figo, Mustang, Aspire and Freestyle. These automobile products are of significantly high quality and the organisation provides significant support for customers of the brand. On the other hand, the accessories and components provided by the brand includes car batteries, car hoods, GPS enabled navigation systems and many more. This study has been conducted in order to evaluate the effectiveness of Ford in the UK market. The various internal and external market conditions of Ford have been analysed within the study.

Company

Ford Motors

Type of Industry

Automobile Industry

Sales/Revenue

$9.6 Billion

Area Served

Worldwide

Number of Stores

7500 global dealers

Competition

Volkswagen, Honda, Toyota, Peugeot, Renault, Mercedes and BMW

USP

Providing high quality cars and products for higher performances of cars.

Target Group

People with need of personal transportation services

Products

Cars and Car components

Website

https://www.ford.co.uk

Ford SWOT Analysis

Based on the case study of Ford, the following strengths, weaknesses, opportunities, and threats of Ford have been presented:

Strengths

  • Ford has a high brand value and image which contributes to significant brand visibility and sales.
  • Ford is highly effective in the use of modern technologies and innovative ideas leading to major influences on the mindsets of people.

Weaknesses

  • The Ford Company experienced a major decrease in revenue over the years due to product failure issues.
  • Ford is unable to perform effectively in the modern emerging markets due to the availability low market shares which have occurred due to a lack of revenue in recent years.

Opportunities

  • Ford has significantly high opportunities for improving its sales by expanding the brand to various other locations throughout the world.
  • Ford can improve their profits and brand image with the development of cars that operate on solar power and electricity.

Threats

  • The cars developed by Ford motors currently utilise petrol and diesel for operations which leads to increased pollution and environmental concerns.
  • Ford faces major global competition from various other companies such as Volkswagen, Honda, Toyota, Peugeot, Renault, Mercedes and BMW, thus leading to lower than anticipated profits.

Need Full Solution?

Request a FREE quote now!

Ask Now

Ford Analysis

Based on the case study of Ford, it can be stated that the organisation has a high brand image due to the development of specialised cars. The cars provided by the brand are of high quality which contributes to increased customer satisfaction (Amineh and Kosach, 2016). This increase in customer satisfaction leads to the use of word of mouth propagation, thus improving the brand visibility. Additionally, Ford is greatly focused on the provision of products that use innovative ideas and concepts. Some of these innovations include the human interaction machine and the world’s first moving assembly line.

The Ford Company has also faced several problems with product failures that have led to a major decrease in revenue of the organisation. As per the case study of Ford, one of the major issues includes recalling the Ford F-150 vehicles from the market for the replacement of brake master cylinders. As stated by Weber (2015), this issue has led to a decrease in the available budget and revenue values of the brand. This decrease in revenue has also contributed to the ability of Ford to buy significantly low amounts of market shares, thus leading to improper performances in the emerging markets.

As per the case study of Ford, the brand has several opportunities for expanding their brand. The expansion of the brand to various states in Mexico and other Latin American states can have positive effects on their profits and sales (Amineh and Kosach, 2016). Additionally, the brand can also develop cars that operate with the use of renewable energy such as solar power and hydroelectricity or wind-based electricity. The development of electric cars provided with electricity via hydropower can lead to significant positive impacts on the brand value.

Ford automobiles currently use petrol and diesel and only a few cars use CNG. This contributes to major negative effects on the environment, thus leading to lower sales and even may lead to legal backlashes. Additionally, the brand faces major competition from organisations such as Volkswagen and Renault. Therefore, the development of new strategic ideas is necessary for ensuring proper accomplishment of the goals.

Ford PESTLE Analysis

Political

  • The recent problems with Brexit have contributed to major political instability
  • The request of Britain to exit the European Union has led to the unavailability of Free Trade Agreement (FTA)

Economic

  • Decrease in the rate of growth in GDP of UK
  • Decrease in the inflation rate of UK

Social

  • The availability of high cultural diversity in workplaces
  • Increased problems with conflicts in UK

Technological

  • UK-China trade relations for gaining access to various new technologies
  • The implementation of technologies in various sectors in UK.

Legal

  • Development of various rules and regulations within UK
  • Compliance the government laws, rules, regulations and legislations for the prevention of legal backlashes.

Environmental

  • Smart Agricultural Concepts in UK countryside.
  • Pollution issues in various cities in UK.

Ford Analysis

The recent problems with Brexit have led to the rise of political instability due to the unavailability of government support in dealing with major brand concerns (Bbc.com, 2019). As per the case study of Ford, the government is unable to provide proper assistance to the brand due to Brexit issues. Additionally, the unavailability of the Free Trade Agreement with various countries in the European Union has led to decreased potential revenues of Ford. The recent development of trade relations with countries such as China and USA has led to higher levels of decrease in profits due to the imposition of taxes for entry.

UK experienced a significant decrease in the rate of GDP growth over the last few years. The GDP of UK in 2017 was found to be 1.8% which decreased to 1.4% in 2018 (Statista.com, 2019). At this rate of decrease, the UK may experience a major decrease by 2022. On the other hand, the inflation rate has decreased from 2.3% to 2.1% in the first quadrant of 2019. Therefore, it can be stated that Ford can collect raw materials at lower prices for effective operations.

UK offers high cultural diversity and thus Ford can utilise the ideas of people from different cultures and races. These cultural differences lead to major differences in thinking patterns and can have positive impacts on the brand. However, these issues also contribute to major conflicts based on the opinions of people from different backgrounds.

As stated by Wignaraja (2016), UK and China have recently developed trade relations for effective procurement of modern technologies. The use of Management Information Systems (MIS) and Cloud Systems can lead to positive impacts on the operations of Ford. Additionally, various other organisations and education systems have also implemented the use of ICTs for effective employee training or education provision to students.

The development of the Equality Act of UK 2010 (c.15) and the Data Protection Act 2018 (c.12) has led to equality among employees within organisations and the prevention of sharing of personal information of employees within organisations (Legislation, 2019). Organisations such as Ford are highly compliant with these rules and regulations in order to prevent legal backlashes and ensure proper brand operations.

The UK countryside has implemented smart agricultural processes that involve the use of solar energy collection for crop growth during the night and the use of hydroelectric or wind energy for equipment operations. These processes have positive effects on the environmental conditions of UK. On the other hand, major cities in UK such as London experience high levels of pollution due to the high availability of cars (Walton et al. 2015). This may contribute to major health issues of people and even low performances and health concerns of employees at Ford.

Reference List

Amineh, H. and Kosach, N., (2016). Assessment of Consumers' Satisfaction with the Automotive Product Quality. International Journal of Environmental and Science Education, 11(16), pp.8726-8739.

Bbc.com, (2019) EU officials: No basis for further UK Brexit talks Available at: https://www.bbc.com/news/uk-politics-49240809 [Accessed on 04/08/2019]

Legislation, (2019) Equality Act 2010 https://www.legislation.gov.uk/ukpga/2010/15/contents [Accessed on 01/08/2019]

Statista.com, (2019) Gross domestic product (GDP) year-on-year growth in the United Kingdom (UK) from 2000 to 2018 Available at: https://www.statista.com/statistics/281734/gdp-growth-in-the-united-kingdom-uk/ [Accessed on 01/08/2019]

Walton, H., Dajnak, D., Beevers, S., Williams, M., Watkiss, P. and Hunt, A., (2015). Understanding the health impacts of air pollution in London. London: Kings College London, Transport for London and the Greater London Authority, 1(1), pp. 6-14.

Weber, A., (2015). Assembling Ford’s aluminum wonder truck. Assembly (Magazine)58(3), pp. 33-46.

Wignaraja, G., (2016). 18. Why trade with Asia is vital to the UK economy. The impact of the UK's post-Brexit trade policy on development, 4(3), p.65-71.

GET 20% OFF On your first Ford Case Study Order Now

whatsApp
whatsApp