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Ford Motor (SWOT Analysis)

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“SWOT is an acronym for the internal Strengths and Weaknesses of a firm and the environmental Opportunities and Threats facing that firm. SWOT analysis is a widely used technique through which managers create a quick overview of a company’s strategic situation. The technique is based on the assumption that an effective strategy derives from a sound “fit” between a firm’s internal resources (strengths and weaknesses) and its external situation (opportunities and threats). A good fit maximizes a firm’s strengths and opportunities and minimizes its weaknesses and threats. Accurately applied, this simple assumption has powerful implications for the design of a successful strategy.”

Ford Motor 

Ford Motor Company (Ford) is one of the largest automotive manufacturers in the world. The company's premier automotive brands include Aston Martin, Ford, Lincoln, Mazda, Mercury and Volvo. The company manufactures and distributes automobiles in over 200 markets across six continents. The company's strong brand portfolio gives it a significant competitive advantage. However, sluggish light vehicle production in developed markets would reduce demand for the company’s products, thus negatively impacting its financial performance.

Strengths, Weaknesses, Opportunities and Threats (SWOT)

 

Location of Factor

TYPE OF FACTOR

Favorable

Unfavorable

Internal

Strengths

  • Strong brand portfolio
  • Strong engineering capability
  • Wide network of distributors and dealers
  • High employee productivity

Weaknesses

  • Continued decline in market share
  • Product recall
  • Declining operating efficiency and weak returns

External

Opportunities

  • Opportunities in India and China
  • Launch of new models Hybrid vehicles
  • Increasing demand for dual fuel vehicles

Threats

  • Sluggish light vehicle production in developed markets
  • European Union vehicle regulations
  • Economic slowdown in the US and Eurozone
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