Ford Motors Company Market Share: Analysis and Strategic Insights

This report provides a comprehensive analysis of Ford Motors Company's market share, exploring factors influencing its performance over the years. It delves into the use of Decision Support Systems (DSS) in addressing market share challenges, examining data types required for analysis (descriptive, diagnostic, predictive, and prescriptive analytics), and assessing data validity issues. The report also discusses methods for data adjustment, the importance of fresh data, and external factors impacting data collection. Key aspects covered include Ford's gross margin, market share analysis, and the impact of data on decision-making, including capital structures and financial strategies. The analysis highlights market trends, competition, and strategic insights for future growth, supported by references to relevant academic sources.

Running head: FORD MOTORS COMPANY MARKET SHARE
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Ford motors company market share:
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Ford motors company market share
Abstracts
In this article, we shall discuss about the increase in market share of the ford motors company
over many years. Also, we shall discuss various things that affects the ford motors company
which includes the following: How to solve the problem of the market shares, the types of data
which is required in order to analyze market shares, issues that may arise from the data validity,
how data collected about the markets shares meet the characteristics of useful information, ways
of adjusting data about markets shares. We shall also discuss on whether the data which is
required to analyze the markets share should be historical or fresh and lastly, we shall discuss
external factors that might Affect Company in collecting data about the market share.

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Introductions
Decision support system
Decision support systems are defined as a computer based tools that help various
companies in the decision making activity. In the current business environment Decision support
system are greatly known to be management information systems which are computerized which
are created so that it can help the executive and the owners of the business to solve a certain
difficult business problems (Galeazzo, 2019). Decision Support systems which are the best will
assists the people venturing into business in performing various tasks such as improvement of
the product performance, cash flow analysis, analysis for resource allocation and concept
rankings.
The ford motor company can meet the leadership cost by being the lower cost producer industry
in the world. For an industry to gain competitive advantages then the ford motor company should
achieve all the leadership costs they are competing for. And in lowering the costs then there are
many methodology and techniques which the motors company will use. For the business models
and leadership skills to be achieved then ford motor company should use information system
which wills improve the relationship between the suppliers and customers. The graph below
shows price change for the ford company over one month (Blokland, & Lodewijks, 2018).
Ford motor is the second largest company in the US, dealing with the automobile .But in
terms of the market share ford motors is in the sixth position. There are various factors which
have impacted the global market share of the Ford motors company. This factor includes the
following: First is the competition outside North America, since the beginning of the ford
company, North America has been a good market for the Ford motor company (Galeazzo, 2019).
Also, it’s very clear from the current statistics that more than half of the total revenues of the

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Ford motors company are generated from North America. Over years there have been rising in
demand of Ford's products outsides North America thus the company had captured the attention
of the emerging markets as they maintain the North America market shares.
In the past decades, the global market share of the ford company had fallen due to that ford was
facing stiff competition from other companies, specifically companies with the large automobile
markets which include India, Brazil, and china (Vazquez, Sartal, & Lozano-Lozano,2016).
Fords Gross margin
In the year 2015, the ford company reported a gross margin of 15.4% .The fords
experience lower gross margins because they had high wholesales volume with the wholesale
prices to their dealers. The chart below shows how ford margins are gradually expanding. This is
due to the facts that the market share of pickup trucks is high (Papasolomou, Crowther, &
Capaldi, 2016).

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Market shares analysis
The major problem ford Motors Company is trying to solve is the problem concerning the
company’s market share. Now ford Motors Company is increasing its business a strategy
oversees so that they can be among the investors all over the world in terms of market shares.
The ford motors company has a large market share due to that they diversified their products into
different markets from time to time and they will achieve cash and liquidity above the targets
(Zeng, Blokland, Santema, & Lodewijks, 2018). For one year the ford Motors Company had
gained $ 7 billion adjusted operating cash flow, adjusted earnings per shares and pre-tax
profits.This gain was down as compared to the previous years due to varying in the market
shares. Below is the diagram which shows the falling of ford motors operating cash flows, pre-
tax profits and adjusted earnings per shares.

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The types of data which are required to analyze the issues of the market shares in ford Motors
Company are: First is descriptive analytics will answer the questions on what happened. The
fords motors company will analyze the market share of every month depending on how they
sales their products and the number of revenues received from different companies in the market.
Thus the company will be able to decide on the product-focused categories in the markets
depending on the monthly revenue, revenue analysis and income by product groups. By using
descriptive analytics the company can be able to acquire data from various sources to give a
valuable insight into the past about the ford motors company market shares. Second is that
diagnostic analytics can be used in measuring the historical data of the ford company about the
market share of the company and how they have diversified in the various markets (Das &
Kundu, 2018).
Third Is the predictive analytics, the data from this analysis will inform us on what will likely to
happens thus motors company will avoid any financial issues which may reduce the markets
shares. The prescriptive analytics, this type of data will helps motors company in formulating
actions which can be used to solve future problems of decrease in market shares (Shao, Shi,
Choi, & Chae, 2018).
Validity of data when determining the company market shares of ford motors company over
many years will give the accurate information but there is a time when there is an issue with data
validity the issues may arise when the ford company use historical data to predict the future
market trends of the company and lack of diversification into the markets will reduce the market
share of the company and as a results there will be an issue of the validity of the data (Vazquez,
Sartal,& Lozano-Lozano, 2016).

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When we collected data about the market shares of the ford company and analyzed then we find
that the market shares over different years have small changes or small variations then we can
conclude that the data analyzed meets the characteristics of the useful data. To adjust the data for
the ford company then the company will use seasonally adjustment of the data and then divide
every data of the markets shares with seasonal factors for each month.
The data which is required in analyzing the market share of the ford company should be fresh
since fresh data gives the company immediate and accurate results of the company market
shares. Also, the fresh data is more accurate since the modern way of collecting the data is used
when gathering data (Howell, 2017).
There are some of the external factors which may influence the collection and analysis of the
data in the ford motors company. This factor includes the government laws, the company
researchers are required by government to registered under department of statistics which is very
procedural process thus this may end few individual being permitted to collect data thus this my
leads to little information about the data and as a result, the market shares may reduce. Also, the
country standard will affect how the ford motors data is collected thus the market share of the
company will not be well analyzed. Some standards may restrict that data being collected should
not have great variations so that it can be term as accurate data. The data being collected and
analyzed in the company should be in a position of meeting the company compliances (Falát, &
Holubčík, 2017).
The data components importance on ford decision making is that it will help the company in
making the capital structures of the company and financial decisions. The company financing is
limited to the optimal capital structure which is a level where the firms’ costs of capital will be
minimized. The ford company will establish structure when the cost of capital is higher than that

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of its competitors. And in order for the company to establish this structure when their cost of
capital rises beyond that of its competitors there is lack of new investment and little profits.
Conclusion
Ford Motors Company has increased its market shares over the years and this has led to the
growth of the company revenue. Thus due to the increase in market share the motors company
has expanded and their sales have been increased (Park, & Hong 2019).

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References
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