Abstract

The motor industry has been one of the most robust sectors in the recent economies. Stiff competition has been order of the day in this sector. The most notable motor providers include ford, general motors, Chrysler and Volkswagen. According to the recent report, general motors had the largest market share in United States with 18.7%. It was followed by Ford motors, Toyota Corp, Honda and Nissan motors with 15.9%, 15.1% and 11.3% respectively. However, it is essential to note that Toyota Corporation has the largest global market share in this sector(Kurtz, 2012). The rate of competition has resulted in major fluctuation in prices as well as improved motor models to fit the increasing demand for the motor products. In this report, the industry forecast will vividly outline the Ford Motors Co.

Ford Motors

Ford motor company is among the leading auto companies in the world. It has its headquarters in Dearborn Michigan which was founded by henry ford. The company was incorporated on 16^th June 1903. Over the years, the company has been providing automobiles and commercial vehicles under the brand name of Ford and Lincoln brand for the more luxurious vehicles (Kurtz, 2012). The range of vehicles produced by this company include; heavy commercial vehicle, tractors, personal cars and other automotive components.

Firm forecast

In order to make a proper forecast of a firm, it is essential for us to understand the current position of the firm. For instance, Ford is ranked second in automaker in United States and ranked fifth largest globally based on its recorded sales. According to the 2010 Fortune 500 list, the company is ranked eighth in the overall American based companies. It is also vita to outline the major macro and micro environmental factors that are critical to the growth and sustainability of the company. This can be realized through effective SWOT and PESTLE analysis.

Within the next five years, the company is expected to have a major increase in sales. This can be attributed to the strong brand portfolio which the company greatly enjoys. The company is known to produce premier automotive brands such as Aston Martin, Lincoln, Mercury, Volvo and others which have attracted a lot of passion to the products faithful’s. This has enabled the company to have a competitive advantage. Strong brand portfolio is essential for ensuring that the consumer loyalty is achieved which will lead to significant increase in sales. The company’s profits have been increasing every year and it is expected to be over $ 30 billion within the next five years (Kurtz, 2012).

Another pivotal strength of the company is the strong engineering ability associated with the company. Ford Motors Company has over the years enjoyed great expertize which has been critical to its success. Highly skilled personnel and capability of producing high quality automotive components has been vital to the successful marketing of these products.  The company also enjoys a good network of distributors who have immensely promoted the company’s products in various parts of the globe.

The company has also employed effective and efficient marketing and promotion exercises which will make the company among the leading auto dealers. For instance, the company has for the past years engaged in motorsports such as rallies, formula one, cars and sponsoring of major events. Most of these events have live TV coverage which has been critical n advertising the products. A continued exercise will make the brand recognition to go beyond boundaries thus further increasing the company’s market shares (Kurtz, 2012).

The company is also faced with major opportunities for growth if they are maximized on. For instance, the automobile sector is expanding every year. This is as a result of the increased demand for auto products even in the third world continents. Ford Motors Corporation has already ventured in the new market opportunities present in India and china. There are also likely hood that by the next five years, ford products could have penetrated in all the six continents thus giving it a global face.  This will be a major boost to the success of the company since its market share is likely to increase significantly. Since it is a multinational company, it is important to abide with the rules and regulations in the different countries so that its internationalization strategy is effectively realized.

The increasing demand for dual fuel vehicles is another great opportunity for the company to grow. This is because the company has good taste for innovation which has resulted to launching of new hybrid vehicles. Ford Motors is also known to constantly produce new vehicles which match competition especially from Toyota Corporation.  This has been critical in ensuring maximum consumer satisfaction thus increased loyalty (Kurtz, 2012).

However, the growth of this company may not be a walk in the park. This is because there are various limitations which could be detrimental to the prospective growth of the company. For instance, the economic meltdown experienced in United States and in the Eurozone can have serious implications to the growth of the company. This is because this region offers the company with a reliable market hence an economic slowdown is detrimental to the company’s sales. This will be occasioned by the continued decline in the market share.

Change of laws and regulations can also be a very serious factor to consider in a forecasting exercise. For instance, the set European Union vehicle regulation will have significant effect in the production process of the Ford Motors Corporation(Kurtz, 2012). The presence of sluggish light vehicle I developed market also forms another important threat to the growth of the ford company which has true taste to quality and excellence. Other internal factors such as declining operating efficiency and weak returns may hinder the expected growth of the Ford Company.

Conclusion

The forecast of the Ford Motors Corporation will be defined by its SWOT analysis which includes strengths, opportunities, weaknesses and threats. The SWOT analysis for Ford Motors is summarized below

References

Gondek, C. (2011). The product Ford Fiesta: A Marketing Analysis – Part I & Part II. München: GRIN Verlag GmbH.

Kurtz, D. L. (2012). Boone & Kurtz contemporary marketing / David L. Kurtz (15th ed.). Mason, OH: South-Western Cengage Learning.

Paul, J. (2011). International business (5th ed.). New Delhi: PHI Learning.

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