FORD AUTOMOBILE INDUSTRY (CASE STUDY) Brief about ford: Automobile production changed drastically in 20 th century from a horse

pull carriage to a rear wheel Drive. Ford Started its automobile production in 1908 .Even Before the financial Crisis hit, between 1990 and 2008 the worlds five biggest automobile makers (Toyota, Daimler Chysler, Volkswagen, GM)who were the Industry competitors of ford had earned a net margin and failed to cover their cost of capital. Ford turn around after the fall of 2007-2008 have been remarkable. Bob Shanks Ford Motor Company controller attributes these to three factors in the automobile industry. 1) Governments of North America and Europe stimulated the demands through incentives for scrapping old cars and subsidies for purchasing new fuel efficient models. 2) Recovery of demand in major markets like China , India, etc for automobiles. 3) Fords own restructuring. Ford new safety and environmental standards brought the demand of creating new models especially for All electric car Model. Ford case study using porters five forces of five force frame work. Ford - porters five forces of five force frame work:

Bosh,Denso,Johnson controls and Delphi Suppliers

Stronger orientation to design

Subsidies

Chinese and Indian automobiles Potential Entrants

Industry Competitors of ford(Toyota, DaimlerChysler, Volkswagen, GM)

Global purchase from 1980 even though it started from 1920 Buyers

Industry competitors: Rivalry among the existing companies. production of the automobiles of the revival companies like Toyota, Daimler-Chysler, Volkswagen, GM produce more number of automobiles. As the years passed by Ford increased production but the competitors also increased their productivity(company website).Ford Sold few of its automobiles to different companies (example: Jagur cars to Tata India) to with stand its industrial market.

Suppliers: Ford suppliers have grown in size and reached global status . Ford had different suppliers which were big enough to start producing themselves Henry ford system of mass production was supported by intensive backward integration. Ford owned rubber plantation and in search of low cost materials, components and services resulted in ford massive outsourcing. Due to the increase demand of technology such as transmission and breaking system. . Bosh, Denso, Johnson controls and Delphi these are few of the Ford Supplier in terms of technology. Potential Entrants: Their were markets in India and China which were growing fast and gave a competition for the ford . Nano model in India with 2,200 dollars gave a tuff fight for the entire automobile industries including Ford. But the Model could not Survive and the company that developed this model took Jagur cars in India. Buyers: Ford went global from the year 1920 but due to geographical boundaries most of the countries already had the Automobile industries, which gave a tuff competition to Ford Expansion globally. Subsidies: Henry Ford has the vision of supplying Affordable mass-production automobiles. Small cars were not giving the profit to the automobile Industry. Once the BMW mini was a hit, the demand to the production of the small cars came in the automobile industry. small cars were also being produced by Ford using better design. Conclusion: Ford though it has faced many problems globally the sales increased that can be seen in the sales of the Ford Industry from 42 billion dollars to 136 billion dollars a sharp increase during (1980-2011) while the Ford Competitors had the fluctuations in their company sales. (Companies financial statement :Hoovers )