Ford Motor Company is an American publicly trading company which manufactures automobiles. It sells cars and commercial vehicles under two main brands, Ford and Lincoln for luxury cars. The company came into existence as of June 16, 1903. Today, it covers most countries in the world. The company’s vision is to make people work together as a lean global enterprise for automotive leadership; its mission is to have one team, one plan, and one goal. Thus, it measures its leadership by the degree of satisfaction of its customers, investors, suppliers, and employees.
Analysis, Composition and Evaluation
The main purpose of the company is to provide manufacturing, servicing, financing and marketing Ford cars. The company’s accessories, parts, vehicles and other equipment are sold through a wide range of dealers and distributors in various countries. The company sells it vehicles to commercial fleet customers, daily rental cars corporations, and government (Cao, Myers, and Omer). It also provides service contracts to dealers and customers. The company has various intellectual patents worldwide.
As for the financial sector, the company provides financial services through its owned subsidiary known as FORD Motor Credit Company LLC, or directly Ford credit. This credit avails automotive financing products to and through automotive distributors and dealers worldwide. The main share of this company’s credit comprises the financing of the company’s vehicles and extending support to the traders. The company gets its revenue from the payment that is made under the retail installment sales and lease contracts, which accrue from the purchases, support payments from the company, interest rates, and subsidiaries.
The company’s strength is a geographically diversified revenue stream. A large amount of this endeavor’s revenue comes from North America, where there is an established market. It is approximated that about 52% of the Ford revenue comes from this area. Moreover, outside the domestic market, the company also has a well-diversified revenue stream as compared to its competitors.
The company’s has good opportunities to grow and expand through market penetration. This is because it employs improved marketing techniques and engages more distributors and dealers. With this, an opportunity appears to improve its financial standings through expanding its supply so as to achieve better economies of scale and reduce the production of costs (“Reception Booster). This further gives the company a competitive advantage over its rivals, since it can produce its products at a lower cost than the other players in the market.
Ford Company has also a good sustainability strategy through its quality control management, which ensures that there are no mistakes in the manufacturing process (West). This shows high safety standards of the company, as the company is building its reputation for safe vehicles.
However, Ford Motor Company has faced some major threats as well. For instance, it is slow in adopting the innovations. The scope of its production network combined with the present competition level, when not addressed appropriately, may lead to its failure. Rapid and aggressive innovation strategies are needed to curb this problem so as to remain in the market for a long time. The company is also faced with the threat that its inventories are not adequately monitored due to its large size. This inability will directly affect the financial capability of the company which may result in substantial losses.
The Importance of Social Media
Due to stiff competition in the market, every organization devices new ways to reach its customers and attract more potential clients. Recently, the Internet and social media have become one of the best ways through which the business entities advertise their products. This is because it brings people of different ages, cultures and status together, making it thereby a good point for advertisement.
