1. MGT 4380 Blake Preston Mason
Ford Market Analysis
MGT 4380
Blake
Preston
Mason

2. Getting to know Ford Motor Company
Founded by Henry Ford in 1903
Headquartered in Dearborn, Michigan
Assembly line and vertical integration have been major keys to success
Over 212,000 employees at plants and facilities worldwide

3. P.E.S.T. Analysis
Political - Governmental Support / International Trade Agreements
Economic - Growth of U.S. Economy / Strengthening of U.S. Dollar
Social - Inc. Demand for Electric & Hybrids / Increasing Wealth Gap
Technological - Technological Enhancement / Alternative Fuel Network

4. P.E.S.T. - Political Governments aim to retain and grow industries
Political stability usually means economic stability
Government attitudes
Government regulations
Changes in design
Increased cost
Safety features
Fuel economy standards
Emission standards
Government bailouts

5. P.E.S.T. - Economic
The automotive industry is an important influencer on economy
Economic growth means more automobile buyers
Higher sales in developed countries
Inflation and rising interest rates are deterring average consumers
Oil dependency
Infrastructural development

6. P.E.S.T. - Social Trends Cultural forces Environmental impact
Brand power
Demographics
Impact on lives
Help in the development of nations

7. P.E.S.T. - Technological
The automotive industry is a leader in innovation
Development of electric cars and the decreasing cost of electric car batteries
Autonomous driving technology
Environmentally friendly technology
Creating safer vehicles

8. Industry Description and Outlook
Large and highly competitive industry
Few majors players control large shares of the markets
Rapid expansion following the recession
Steady decline beginning in 2017
Rise in auto loan delinquency rates
Marketing shift to high wealth individuals
Sales of trucks, suvs, hybrid, and electric vehicles rising
Industry thought to decline in 2019

10. Target Market / Size / Trends
Ford does business in 62 different countries
Ford offers a variety of different vehicle options to suit the lifestyle and needs of consumers around the globe
Technology is a major area of focus
Second Largest US based automaker
Ford F-Series is top selling vehicle in the U.S.
Ford Mustang and Focus only car/sedan available after 2018

11. Competitive Analysis
Direct competitors - Other big name brand automotive companies
Fiat Chrysler Automobiles
General Motors Company
Toyota Motor Corporation
Indirect Competitors - Substitute automobiles / transportation
Uber
Different style vehicles

12. Competitors Strengths
Market Share
Research and Development
Wide Product Portfolio

13. Competitors Weaknesses
Dependence on US market
Rigid hierarchical structure

14. Ford S.W.O.T Analysis Strength:
Market share in cars and light trucks was 14.8% August 2015, making it number two to General Motors
Research and Development Ford is allowed a big budget to work on new technology.
Ford’s market share was 7.2% in 2015
Strong financial position reported free cash flow of $3.477 billion in June 2015.

15. S.W.O.T Analysis Weakness: Product failures
Inability to match the production capabilities or sales volume of the top five automakers
Heavy dependence on U.S. and European markets.
Poor performance in emerging markets.
Blue collar/middle-class brand, makes it hard to market it to luxury buyers

16. S.W.O.T Analysis Opportunity: Self driving/autonomous cars
Alternate fuel source; such as their existing C-Max Electric
Emerging markets like China, India, and Mexico

17. S.W.O.T Analysis
Threat:
Increasing pressure from German and Japanese companies
Competing companies have head start on alternative fuel source
Reduction in amount younger generation is driving
Uber, Lyft, and other ride sharing companies

18. Barriers to Entry / Regulations
-Funding
-Years of Research
-Volume / Cost of Production
-Channels of manufacturing / distribution

19. Projections NADA Slight decrease in sales in 2019
New Age of Automobiles
In 2020 Ford plans to release hybrid F-series
Fully electric, autonomous, and other hybrid cars

20. Citations
Balan, Valery. “PEST Analysis on the Automobile Industry.” Academia.edu - Share Research,
Britannica, The Editors of Encyclopaedia. “Ford Motor Company.” Encyclopædia Britannica, Encyclopædia Britannica,
Inc., 3 Jan. 2019, britannica.com/topic/Ford-Motor-Company.
“Global Car Sales ” Statista, Statista,
Investopedia. “How Much Impact Does Government Regulation Have on the Automotive Sector?” Investopedia, Investopedia, 29 Mar. 2018,
Pratap, Abhijeet. “Automotive Industry PESTEL/PESTLE/PEST Analysis by Cheshnotes.” Cheshnotes, 9 Mar. 2018,
Pratap, Abhijeet. “PESTEL ANALYSIS OF FORD MOTORS.” Cheshnotes, 20 Feb. 2019,
“2018 Automobile Industry Outlook | Prevedere BI Insights.” Prevedere, prevedere.com/insights/webinars/2018-automobile-industry-outlook/.
“2019 Automotive Industry Outlook - Webinar.” Prevedere, prevedere.com/insights/webinars/2019-automotive-industry-outlook-webinar-thank-you/.