Ford Competition Essay

1964 words - 8 pages

In a present day of global warming, environmental issues, labor unions, and other impacts, the automobile industry is in an era of instability and change. Ford Motor Company has been traditionally considered one of the "Big Three" in the auto industry, but they are not adapting as well as hoped to the changing industry, and will have to strategize to survive in a struggling industry.

There are many different risk factors for Ford and its competitors. In this paper we will look at two competitors for Ford that are also considered to be members of the "Big Three" and coincidently, are not adapting to changes in the auto industry as quickly as other competitors. These other companies are General Motors (GM) and Daimler Chrysler. We will also look at the general group of foreign car manufacturers who are steadily acquiring market share from the Big Three.

The first major risk for the auto industry in general is that of global warming and a growing concern for environmental issues among consumers. This is a risk that is spread among the entire auto industry, not just Ford Motor Co. Consumers are becoming more aware of the impact the auto industry has on the environment, and making their purchasing decisions with that on the criteria.

Another factor involved with the auto industry, is a pressure on the companies ability to increase prices. Due to excess capacity and the ability of Japanese and Korean auto manufactures to mass produce and thus lower cost prices, many companies in the auto industry are producing vehicles at little to no profit due to the inability to raise prices.

A major risk or concern for North American auto makers is the employee's health care expenses. For Ford, in 2006 their health care expenses for U.S. employees and dependants was $3.1 billion, and with $1.8 of that in postretirement health care. Ford feels that although steps have been taken to lower their health care expenses, the cost to the company will continue to rise for the foreseeable future. Foreign car manufacturers have on average lower health care and employee costs, giving them an advantage over Ford, GM, and Daimler Chrysler. Ford Motor Co is hoping to take steps to offset the costs of employee benefits; however, this could also lead to negative publicity for the company. Foreign auto makers are able to maintain lower costs with non-unionized and on average, younger employees.

The next risk factor for the auto industry is commodity and energy price increases. Steel and resin (plastic) are the two most used commodities for auto manufacturers, and they are products in high demand for many industries. Rising awareness of sustainability and rising demand for these products has lead to recent price increases, and it is estimated to continue this trend. This factor targets all of the auto industry, but again hits the big three and other auto manufacturers harder then it does some of the foreign car manufacturers. Japanese auto makers...

Find Another Essay On Ford Competition

FORD MOTOR COMPANY – ORIGINS AND CURRENT BUSINESSES 2.

684 words - 3 pages Pacific/Africa region. Half of Ford Motor Company’s sales come from North America and the Financing corporation of the company named “Ford Motor Credit” is one of the US's leading auto finance companies In regards to competition Ford and the also famous car company Chevy have been rivals for decades but just recently Ford has announced it will be pursuing the integration of aluminum in their vehicles. “The 2015 F-150 uses so much aluminum that

Managing Product Safety: the Ford Pinto

2547 words - 10 pages this pressure was even greater at Ford. Even though they held the number two spot in market share behind General Motors, they only held a 22.3% market share compared to General Motors at 46.4%, a very significant difference. There was strong competition for Ford in the American small-car market from Volkswagen and several Japanese companies in the 1960's. In order for Ford to stay competitive and fight off competition, they rushed its newest

Ford Motor Company

1859 words - 7 pages itself in term of the five forces of competition. Fords five forces of competition are; competitive rivalry, New Entrants, Substitutes, bargaining power of customers and bargaining power of suppliers. Competitive rivalry; the intense competition in the automobile industry turns to yield low returns; because of the high cost in competition. Nevertheless Ford can drive for competitive advantage over it rivals; the firm has a high technology

Ford motor company: supply chain strategy

734 words - 3 pages HistorySince the Ford Motor Company's incorporation by Henry Ford in 1903, its strategic focus has remained on automobile design and manufacturing. Up until 1970, competition was from the two other manufacturers making up the Big Three Automakers; General Motors and Chrysler. However, starting in the 1970's, foreign competition, mostly from Toyota and Honda, eventually lead to overcapacity within the industry. As more and more developing and

Managing Product Safety: The Ford Pinto

2520 words - 10 pages pressure was even greater at Ford. Even though they held the number two spot in market share behind General Motors, they only held a 22.3% market share compared to General Motors at 46.4%, a very significant difference.There was strong competition for Ford in the American small-car market from Volkswagen and several Japanese companies in the 1960's. In order for Ford to stay competitive and fight off competition, they rushed its newest car the

Ford Company Background

2050 words - 8 pages it focus on compact fuel-efficient hybrid and flexible fuel cars that are less attractive when the fuel price is low.Rising raw material prices. Rising prices for raw metals will lift the costs for auto manufacturers and result in squeezed profits for the companies.Intense competition. Ford faces more intense competition from other auto manufacturers more than ever, especially in small cars segment with hybrid engines.Fluctuating exchange rates

Current Market Conditions

1860 words - 7 pages pricing as the competition increases competitive pricing pressures (The Mackinac Center for Public Policy (2001). The non-price strategies Ford suggest to preserve or enhance sales is to focus on customer loyalty, retention, and repeat business. These three areas can lead to lifelong consumers who spend an average of $300k on automobiles in their life time. That figure is far more than the one time customer. The strategy to retain these customers

An examination of the global strategy and cross-border operations of Ford Motor Company with SWOT analysis

2553 words - 10 pages economies.ThreatsHyper competition in industryJapanese competitors have lead in technologyHigh cost of operations vs competitorsRising popularity in small vehicles and alternative fuel technologiesDeclining sales in SUV and truck marketsIncreasingly restrictive legislation requiring more environmentally friendly vehiclesAppendix CProfile of Ford Motor CompanyFord Motor Corporation was founded in 1919, and was incorporated to produce and sell motor

Research on Financial Inclusion

3002 words - 12 pages dealt with directly. Rather than fostering strong price competition among suppliers for individual components, there was a shift toward longer-term relationships with a subset of very capable suppliers who would provide entire vehicle subsystems. These "tier 1" suppliers would manage relationships with a larger base of suppliers of components of subsystems-tier 2 and below suppliers. Ford made its expertise available to assist suppliers

U.s Auto Industrys Market Share And Fluctuations

879 words - 4 pages U.S Auto Industry's Market Share and Fluctuations The U. S. auto industry's share of the market has experienced fluctuations over the past 50 years. These fluctuations have been caused by many reasons, but some of the main reasons include quality, price, and foreign competition. The Ford Motor Company, General Motors Company, and the Chrysler Corporation, a.k.a. "The Big Three", are the three largest manufacturers of automobiles in

Henery Ford

1714 words - 7 pages second car finished in 1898 which was lighter and stronger than most cars around then. Soon enough many automobile companies were looking for somebody like Ford to help get their company going. However, Ford would go into automobile racing and then build his own car company. Ford's years in automobile racing was his way to improve the car and a chance to test it under competition. Soon though, he would get out of racing by a tough minded and

Similar Essays

Ford Motor Company Global Competition Essay

656 words - 3 pages Global Competition Ford has been successful in the business world, in its attempts to gain a competitive advantage in the increasingly competitive world of the automotive industry. Continually growing in size Ford is no longer known as a purely American company. With plants located in the United States, Europe, Asia, Central and South America, as well as a Canadian based division, the company employs thousands of workers and provides

Henry Ford Essay

913 words - 4 pages Industry. Works Cited http://www.biography.com/people/henry-ford-9298747 http://www.biography.com/people/henry-ford-9298747/videos/henry-ford-early-life-20731459711 http://www.biography.com/people/henry-ford-9298747/videos/henry-ford-automobile-competition-20730947714 http://www.deseretnews.com/article/999061/Important-dates-and-events.html?pg=all http://www.nytimes.com/learning/general/onthisday/bday/0730.html http://www.philanthropyroundtable.org/almanac/great_men_and_women/hall_of_fame/henry_ford

Henry Ford: Mobilizing The American Automotive Industry

1934 words - 8 pages service to others. By manufacturing vehicles for all people, whether rich or poor, old or young, male or female, purely out of service to others, Ford displays heroin qualities. Henry Ford also speaks about the basis of his work which is, “(1) An absence of fear of the future or of veneration for the past, (2) a disregard of competition, (3) the putting of service before profit, and (4) manufacturing is nor buying low and selling high” (Ford 273

Swot Analysis: Ford Motor Company

1412 words - 6 pages alternative fuel sources 6. Ford Motor Company invests very heavily in Research and Development in the industry Weaknesses 1. Had tire recalls from Firestone which caused Ford Motors stock price to drop 2. Over the past few years the market shares for Ford Motor Company has declined in the U.S. 3. Ford Motor Company has tough competition with European and Japanese manufacturers, therefore the company did not respond well and suffered 4. The