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  • Essay / Ford Competition - 1805

    In today's era of global warming, environmental issues, labor unions and other impacts, the auto industry finds itself in an era of instability and change. Ford Motor Company is traditionally considered one of the "big three" in the auto industry, but it is not adapting as well as hoped to the changing industry and will need to strategize to survive in a sector in difficulty. There are many different risks. factors for Ford and its competitors. In this article, we will look at two Ford competitors that are also considered members of the "Big Three" and who, coincidentally, 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 automakers who are gradually gaining market share from the Big Three. The first major risk for the automotive industry in general is that of global warming and growing consumer concern for environmental issues. This is a risk that extends to the entire auto industry, not just Ford Motor Co. Consumers are increasingly aware of the auto industry's impact on environment and make their purchasing decisions based on these criteria. Another factor involved in the automobile industry is putting pressure on the ability of companies to increase their prices. Due to excess capacity and the ability of Japanese and Korean automobile manufacturers to mass produce and therefore reduce cost prices, many companies in the automobile industry produce vehicles at little or no profit due to the inability to raise prices. A major risk or concern for North American automakers is covering employee health expenses. For Ford, in 2006, their healthcare spending... middle of paper ... understanding the process and the ins and outs of what is needed and wanted for a car, which also has good business sense. So what does this say about the future of Ford and the auto industry? If Ford wants to survive beyond the next ten years, restructuring is crucial. The risk factors described turn out to be risks, but they are factors that can be overcome. Companies that have overcome most of these factors (foreign companies) have higher profits and outperform traditional automakers. If Ford can act quickly, strategize and eliminate these factors, they may be able to regain their position at the top, but they must not rely on their brand and pay more attention to what the company wants and needs. consumer needs.