FordMotor Company (Ford) is based in America and was originated in June 16th,1903 by Henry Ford with eleven (11) associate investors. In 1919 the companywas reincorporated, with Ford, his wife and his son obtaining completeownership of the business. Henry Ford’s first car was assembled at the MackAvenue plant in July 1903.
In the 1911 he established the U.S. branch andopened the first foreign production plant in England in 1913. The brand includes Ford, Aston Martin, Jaguar, Lincoln, Mazda, Mercury,Land Rover and Volvo. Ford is a multinational enterprise with approximately 300,000employees and 108 plants worldwide including the United States, China, Mexico,Canada, the United Kingdom, Germany and many other countries. The company designsand manufactures a line of Ford cars, sport utility vehicles, trucks, tractors,as well as service parts and accessories across the world.
Ford maincompetitors are General Motors Company, Toyota Motor, Honda Motor Company andTesla Motors. The company sells its dealership for retail sale, car rentalcompanies and government organizations. Ford aim is to develop products thatserves the changing needs of people globally in the automotive industry. One of the external factors affecting the autoindustry is the way in which government is involved in business. Theirinvolvement can negatively impact the profitability and sustainability of theorganization. In some regions government has increased taxes on luxury vehicleswhich can significantly impact the profits that some of these companies makeand as such, can lead to a competitive disadvantage.
This can affect customersin an adverse way resulting in higher prices for vehicles. However, there havebeen implications for Ford. Ford makes it more affordable by offering consumersa build and price model based on their budget.The economicclimate also affects the decision making of the auto industry. Economic upturn,downturn and recession can affect the purchasing power and spending habits ofconsumers.
When the economy is in a recession, consumers are spending less anddemanding more value. Ford has introduced a new line of cars such as the hybridthat can be more affordable for consumers and beneficial for the environment.The hybrid electrical vehicle saves the customer the expense of purchasing gasresulting in a competitive advantage. Ford and Toyota jointly develop thehybrid vehicle and split the cost of research and development.The threats of substitutes in the auto industry isconsidered to be high when there are alternative products and services withlower prices and superior performance. In some regions the gas prices has increasedand people are now switching to public modes of transportation. This will significantlyimpact the level of sales in the auto industry but not reverse them resultingin a competitive disadvantage.
In order to minimize this threat, Ford offers