SWOT Analysis: A Study on Ford Motors' Business Strategies

This report provides a comprehensive SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis of Ford Motors. It begins with an overview of SWOT analysis as a business tool, emphasizing its importance in evaluating internal and external factors. The report then delves into Ford's strengths, highlighting its strong brand image, global supply chain, innovation processes, new technologies, and strong R&D capabilities. Following this, the report examines Ford's weaknesses, including product recalls, poor performance in emerging markets, and higher costs compared to competitors. The analysis then shifts to opportunities, such as global expansion through market penetration and growth via product development. The report underscores the importance of strategic formulation for Ford Motors to maintain its position and achieve its goals in the competitive automotive industry, emphasizing the need to leverage strengths, mitigate weaknesses, and capitalize on opportunities to address potential threats. The analysis covers various aspects of Ford's operations, from brand image to R&D, and provides insights into the company's current standing and future prospects.

h1: SWOT analysis of Ford Motors
The business environment is very competitive. It has become very hard to survive in the business
environment due to high-level of competition. Therefore, it is essential for the organizations to
analyze their business environment along with their strengths and weaknesses so that they can
develop strategies to maximize their strengths and improve the weaknessess. There are several
tools or framework with the help of which the organization can analyze their strengths and
weaknesses. SWOT analysis is one of the important tools which significantly help the
organization to measure the strengths and weaknesses. So, this article is focused on studying
SWOT analysis in regard to Ford Motors which is an American which offers motor vehicles to
its potential customers. The purpose of this paper is to study and analyze SWOT analysis. Before
looking into the strengths and weaknesses of the selected organization, I am going to present a
brief discription of the SWOT analysis.
SWOT analysis is a very important tool which helps the organization to analyze internal as well
as external environment of the business at the same time. SWOT stands for strengths,
weaknesses, opportunities, and threats. The internal environment of the organization includes
strangths as well as weaknesses whereas the external environment of the organization includes
opportunities and threats. Thus, with the help of SWOT analysis, an organization can easily
analyze both its internal as well as external environment. It is also important to note that SWOT
is also called TOWS analysis. So, the students should not be confused in SWOT and TOWS. It
also helps the organization to develop strategies to improve the performance and productivity of
the organization.
h2: Strengths of Ford Motors

Ford Motors is one of the well-known automobile brand in the world. It is the fifth largest
producer of the vehicle in the world. The organization is focused and determined to maintain its
position and improve gradually to become the global leader in automobile industry. The aim of
Ford Motors is to be the global leader in the automobile sector and hence in order to achieve the
aim the organization is focused on strategic formulation. The following are the major strengths
of Ford Motors;
h3: Strong brand image
The brand image of the Ford Motors is very strong. The people from all around the world are
well-aware of the brand name of the organization. Due to the strong brand image in the world,
the organization has gained loyal customers. The brand image of the organization is not strong in
the USA only but also all over the globe. The strong brand image of the company helps in
increasing the attractiveness of its products as well as loyalty of the customer.
h3: Global supply chain
Ford Motors Company has global supply chain which enhances the ability of the organization to
procure raw material and deliver finished product to the end-users. The supply chain of the
organization is very effective which significantly support the operational activities of the
organization. Smooth operational activities of the organization improve the performance as well
as productivity.
h3: Innovation process
Innovation process is also one of the key strengths of Ford Motors. Innovation process provides
competitive advantages to the organization. Thus, with the help of innovation process Ford

Motors competes with the key competitors in the market. Innovation process enhances the
abilities of the organization.
h3: New technologies
Ford Motors is very keen towards the development in technologies. It always tries to cope with
the technological changes in order to be capable of competing with the competitors. The
organization uses new technologies in its vehicles to equip the vehicles with new features. It
helps in attracting more customers to the organization.
h3: Strong R&D
R&D department of Ford Motors extensively helps the organization to succeed in the market. It
provides input to make effective strategies. As the organization is committed to continous
improvement, it spends a lot on R&D. The major goals of the company are achieving fuel
efficiency, customer satisfaction, safety of the customer, as well as developing new and
innovative products. Through strong R&D, Ford Motors has significantly achieved its goals.
h2: Weaknesses of Ford Motors
It is not necessary that all the things will always go in the favour of Ford Motors. There are
certain things which reduce the abilities of the organization and hence the performance and
productivity of the organization decrease. The business environment is very dynamic and
complex. Hence, it is possible that some things may go against the company. Here are some of
the weaknesses of Ford Motors;
h3: Product fail

In the year 2013-14 Ford Motors recall more than 271000 Ford F-150 vehicles due to safety
reasons. The organization has faced this situation many times. In 2016 as well, the organization
recall its vehicles due to safety reasons. It impacted the image of the organization significanlty.
Due to the failure of the products, the brand image of the organization has been affected
significantly. Such incident harms the brand image and hence the faith of the customer also
reduces on the brand.
h3: Emerging market
Considering the market share of Ford Motors in emerging market, it can be said that the
performance of the organization is poor. Emerging markets have significant potential and the
organization can do excellent job in these market if the company focuses on improving its
performance through strategic strategies.
h3: Higher costs
If compared to the competitors, the overall cost of Ford Motors is higher. The organization is not
effective in controlling the costs and hence the profit margin of the organization is being
affected. The higher costs of the organization also compels the organization to set higher price of
the vehicles as compared to the key competitors. As a result of increase in the price of vehicles,
the sales volume of vehicle reduces.
h2: Opportunities for Ford Motors
The opportunities for Ford Motors are linked to the growth as well as expansion of the
organization. There are several opportunities available to the organization which can help the
organization to grow and expand with the passage of time. Some of the opportunities available to
the organization are the following;

h3: Global expasion
One of the most significant opportunities which Ford Motors can enjoy is the global expansion.
The organization can expand its market in the global market through market penetration. The
organization is investing huge amount of money in transmission plants as well as new engine in
the Mexican states of Guanajuato as well as Chihuahua. It will help the organization to capture
new market. It will also increase the production capacity of Ford Motors by 40%. Thus, it will
drive huge revenue for the company.
h3: Growth with the help of product development
This is also one of the significant opportunities for Ford Motors.