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Essay / Research Paper Abstract
This 3 page paper examines the Ford Motor Company using Porters Five Forces Model which is utilized to present some potential strategies for the company. The bibliography cites 5 sources.
Page Count:
3 pages (~225 words per page)
File: TS14_TEford10.rtf
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Unformatted sample text from the term paper:
identify potential strategies for the company. Existing competition is high the firm has three larger competitors; Toyota, General Motors and Volkswagen, but with the bankruptcy of General Motors
in 2009 and their selling of off assets this is likely to change. There are other firms that are rising to prominence, Hyundai and with the divestment of Chrysler from
Daimler there is increased competition for the US market. Poor market conditions, with a recession and liquidity problems causing financing issues for firm with car loans being hard to obtain,
means that competition has been fierce with high levels of discounting to move inventory (Anonymous, 2010). New competitors are potential threats, although these are limited due to the cost of
entry into the market. However, with the openings in the market resulting from the increased demand for cheaper cars and more efficient cars there are market openings. One example of
a new firm entering into Fords core markets is Tata Motors. This Indian based car manufacturer is increasing sales and expanding, with a focus on the budget market, the car
and the first car to retail at under $2,000. The car, officially called the Nano, is also known as the peoples car and was unveiled on the 10th of January
at the New Delhi Auto Expo (Overdorft, 2008). When looking at the power of suppliers the power of the suppliers is
in Western world is relatively limited, where there are short term contracts and firms are likely to be able to switch suppliers relatively easily and as such the power of
Ford over those is limited, but in many instances the suppliers will be smaller and Fords will purchase a high level of their production, giving them asymmetrical power (Grant, 2004).
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