Ford Motor Company Competitive Analysis

1. Ford Motor Company Competitive Analysis MGT 4380-S01 April, 17th 2019 Group 6: Blake Hardy Preston Womack Mason Fletcher

2. About the Industry • Highly labor and raw material dependent • Manufacturing of cars, parts, machinery, etc. • Always adjusting to new trends, and ideas • Companies are now branching in vehicle renting/ ride sharing • OEM and Aftermarket manufacturing of accessories • Beginning to slow down in the compact car/ sedan sales

3. What Influences Change in the Industry? • New generation of customers • New generation of Technology • Outside forces • Ride sharing applications/ services • New vehicle trends (Truck/ SUV) • Government regulations of emissions • Financial status of target consumers • Fluctuations in environment for raw materials

4. Identify Your Competitors • General Motors Company • Most of the competition stays in the United States • Countless sub companies such as Chevrolet, Buick, Cadillac, Holden, and Wuling • Have similar vehicles in their line-ups • GMC and Chevrolet sell trucks that compete with Fords number 1 selling F-series trucks • Largest market share in US; $1570 in 2018 income • Toyota Motors • Largest world market share percentage • One of the only non-US based companies to compete with Ford’s F-series • Large investment in research and development helps keep an advantage • Chrysler • One of the “Big Three” in US automotive industry • Competes with Ford on sedans and Trucks through ownership of Dodge

9. Secondary Competitors • Daimler (Mercedes-Benz/ AMG, Smart) • High quality • Advanced Technology • Luxury vehicles • Sedans, Crossovers, Sports cars, & soon Trucks • BMW (Rolls-Royce, Mini) • High Quality • Sedans, Crossovers, Sports cars • Tesla • All electric • Luxury vehicles • Sedans, Crossovers, soon Sports cars, & Trucks

10. Who Is Selling What You Sell? • Oligopolistic market • Top 10 automakers control over 70% of market • 14 major corporations control a combined 62 auto brands • Actions of one automaker significantly affect the decisions of others

12. Geographic Competition • Ford competes in over 200 markets globally • All Ford products are localized • The United States is the world’s largest auto market • Compete primarily on cost • The “Big Three” • Foreign competitors

13. Who Are Your Competitors Targeting? • General Motor’s • Has a wide range of product mixers • Numerous brands such as GMC, Buick, Chevrolet, and Cadillac which target markets worldwide • GMC and Chevrolet are companies geared toward a working individual • Buick, and Cadillac are geared towards the more business, or family style automobiles, luxury type cars • Toyota • Personal selling is done through the dealership and potential/actual buyers • Advertising is utilized through mainstream media such as TV, radio, and other forms but also social media • Corporate public relations is done through company sponsoring worthwhile or charitable organizations like the Toyota TogetherGreen program that supports environment initiatives

14. Ford SWOT Analysis • Strength • Ford’s strength is derived from their brand, global operations, as well as their R&D • Market share in cars and light trucks was 14.8% in August 2015, making it number two to General Motors • Their strong brand image is due to the fact they are one of the top players in the global market. • Weakness • Limited scope on their global production this limits them in their market expansion and market utilization • Product failures • Poor performance in emerging markets • Had to shut down some of their plants within Europe • Opportunity • Expand their market share by penetrating with more dealerships • Improve market strategy • Increase innovation and make it more efficient • Threat • Competitors hold a larger market share both globally and domestically • Slow innovation

15. GMC SWOT Analysis • Strength • The company's ability to accurately and effectively utilize the economies of scale • Production capacity which allows them to address/meet market demands • Development of new technology • Strong brand portfolio • Weakness • Dependency on the U.S market • Opportunity • Increase presence in developing and emerging countries • Utilize their subsidiaries • Threat • Government regulations and backing of alternative modes of transportation • Competitors using new and emerging technology

16. Toyota SWOT Analysis • Strength • Research and Development which has led to some of the most innovative automobiles in the world • Great brand awareness, between 7th-9th most valuable brand in the world • Weakness • The company enforces a strict global hierarchy meaning all regional heads must report back to the organization’s global headquarters in Japan. • Opportunity • Expanding and increasing their presence within developing and emerging countries is a key opportunity to seize • Toyota can increase their focus on fuel efficiency and began developing and incorporating new technology to aid with fuel efficiency. • Threat • Market threat by new companies that have lower cost production and automotive costs from companies in countries like Korea and China • Rapid innovation creep from major competitors like GM and Ford leading to them being overtaken through innovation

17. Income Levels • Marketing shift among industry • Prices and interest rates rising • New car sales falling • Gap between new and used vehicles • Pinpointing consumers with disposable income • Ford’s product lines • Lincoln brand • Targeting strategy

18. Online Sales • Buying an automobile is a painstaking process • Tesla leading the charge • Ready Shop Go • Find Your Ford

19. Determine Where You Can Add Value. • Focus resources on what part of the company is thriving • SUV’s • Trucks • Fuel-economy • Technology • Looking into the future for advancements in products • Fully electric vehicles

20. Summary • Many branches within the automotive industry; Vast market in each • Significant research goes into each automaker’s vehicles to better compete • Even unrelated vehicles can compete with each other in some way • Always adapting to new generation of technology, and norms

21. Citations The Wall Street Journal, Dow Jones & Company, www.wsj.com/mdc/public/page/2_3022-autosales.html. “Automotive.” Competitive Analytics, competitiveanalytics.com/automotive. “Car Sales Market Share by Country, Manufacturer and Quarter.” CSIMarket, csimarket.com/economy/Market_Share.php. “General Motors - Vehicle Sales Market Share in the U.S. 2018 | Statistic.” Statista, www.statista.com/statistics/239607/vehicle-sales-market-share-of-general-motors-in-the-united-states/. Gould, Skye. “These 14 Companies Dominate the World's Auto Industry.” Business Insider, Business Insider, 15 Feb. 2018, www.businessinsider.com/biggest-car-companies-in-the-world-details-2018-2. “U.S. Market Share of Automobile Industry.” Statista, www.statista.com/statistics/249375/us-market-share-of-selected-automobile-manufacturers/. Bhasin, Hitesh. "Marketing Mix Of Ford Motor Company". Marketing91, 2019, https://www.marketing91.com/marketing-mix-of-ford-motor-company-ford-marketing-mix/. "Competition In The Global Automobile Industry". Academicwritersbureau.Com, 2019, https://www.academicwritersbureau.com/samples/221-competition-in-the-global-automobile-industry. "Competitive Market Analysis And Positioning - Strategic Management: Ford". Sites.Google.Com, 2019, https://sites.google.com/site/buad467ford/home/competitive-market-analysis.

22. Citations “U.S. Market Share of Automobile Industry.” Statista, www.statista.com/statistics/249375/us-market-share-of-selected-automobile-manufacturers/. Bhasin, Hitesh. "Marketing Mix Of Ford Motor Company". Marketing91, 2019, https://www.marketing91.com/marketing-mix-of-ford-motor-company-ford-marketing-mix/. "Competition In The Global Automobile Industry". Academicwritersbureau.Com, 2019, https://www.academicwritersbureau.com/samples/221-competition-in-the-global-automobile-industry. "Competitive Market Analysis And Positioning - Strategic Management: Ford". Sites.Google.Com, 2019, https://sites.google.com/site/buad467ford/home/competitive-market-analysis.