Ford Case

Introduction

I/ Ford Company's presentation

Lincoln was Ford’s first acquired brand (1922). It offers consumers few evolving lines of luxury cars.

Mercury was created by Ford to reach a new consumers’ segment, and its product is between economical Fords and luxury Lincolns.

Volvo has been offering standard safety car’s models since 1927 and was acquired by Ford in March 1999.

The main products and services offered by Ford are: mainstream performance vehicles, automotive parts, automotive finance, and vehicle leasing and vehicle service.

Ford owns a financial subsidiary: Ford Motor Credit Company, which provides financial services for customers who buy cars, such as credits, payment options and also insurances.

Ford‘s global revenue reached $146.3 billion in 2008, and produced 5,532 billion cars.

II/ External analysis

Macro-environment analysis

PEST analysis

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The PEST analysis is a strategic tool used to analyze the macro-environment in which a company operates. PEST factors play an important role in the opportunities for value creation strategy. However, they are usually beyond the businesses control and must normally be considered as threats or opportunities. The model's factors will vary in importance to a given company based on its industry and the goods it produces.

Political & Legal factors Firstly, the companies have to cope with legal restraints on competition such as tariff barriers, quotas and custom duties… These restrictions vary from one country to another.

Government subsidies have an impact on the automotive industry. In fact, governments are trying to help or protect their industries by giving public funds to local companies. It can be seen as an unfair trade practice for competitors.

Economic factors

Socio-cultural factors

As the purchase power is increasing in Asia, more people can afford to buy a car in...