SWOT MATRIX

Strengths Weaknesses
1. Increased in revenue to 6%
(i.e. $87.62 B) in June 30,
2007.
1. Net income of the company
was negative $16B in 2006.
2. Production of hybrid
energy vehicles.
2. Revenues decreased by 9% in
2006.
3. Fords credit division
achieved an increase of
$16.5B in 2006.
3. Fords revenue from North
America decreased by 10% in
2006.
4. Strong brand recognition as
affordable and safe vehicle.
4. EPS of -3.723 reflecting the
company is facing huge losses.
5. Increase in PAG division
from $ 8.0 8.6 B in 2006.
5. Profit margin declined from
18% - 7% in 2006.
6. Effective distribution and
manufacturing channels
covering 17.5% of market
share in the automotive
industry.
6. Ford does not provide
financial incentive to dealers.
7. Worlds largest loving roof
in Michigan.
7. Organizations morale
decreased due to downsizing.
8. Running worlds largest
finance company.
9. Opening of research and
engineering centre in China.
10. Operate throughout the 6
continents with 108 plants
globally.
Opportunities SO WO
1. Demand and trend for hybrid energy
vehicles.
1. Produce hybrid energy
vehicles with British
petroleum.( S2,O1,O5)
1.Use of competitive intelligence
information for restructuring of
production processes to produce
attractive and economical
products.(W3,W2,W5,O3,O2,O6)
2. China, a vibrant market for
automotive industry.
2. Produce innovative and
economical vehicles through
detailed market research.
( S3,S8,O2,O6)
2. Fulfilling of existing demand
through strong brand image and
applying retrenchment strategies
in production and vehicle cost.
( W1,W3,W4,O1,O4,O6,O7)
3. Reduction of GM sales due to
perceived lower quality and fuel
efficiency.
3. Production of fuel efficient
Cars ( S5,S9,O4,O6,O3)
4.Demand of fuel efficient cars.
5. Alliance with the British Petroleum
to develop hydrogen power.
6. High expectations of consumers.
7. Fords S-Max Car of the year in
Europe in 2006.
Threats ST WT
1. Excessive sales to rental car
agencies affecting the brand image and
resale values.
1. Apply market penetration
strategies globally A) sponsor
events related to sports,
entertainment etc B)
Partnership with a television
channel that will display ads
of ford motors in different
intervals C) Developing of
Ford's Blog
(S3,S5,S9,T3,T8,T9)
1. Alliance with competitors or
horizontal integration should be
applied.
( W2,W3,W4,W5,T2,T3,T4)
2. Strict standard of CO2 emission
result in increasing the manufacturing
cost to produce engines.
2. Seek Cost effective
strategies utilizing alternative
energy in production and use
Backward integration
technique to overcome high
costs.(S6,S8,S9,T2,T4,T6)
2 Providing monetary packages to
dealers or providing some percent
of company's share (W6,T6)
3. New entrants i.e.: Honda, Toyota
and Nissan result in tough competition.
4. Currency rate fluctuation and
increased cost of raw materials effect
the production and sales.
5. Car financing sector facing financial
hardship due to increasing mortgage
rates.
6. Lack of desired vehicles available
on the dealers lot.
7. Rising cost of health care and
pension will effect the future
investment.
8. Toyota selling vehicles through Ecommerce
(Gazoo.com).
9. Chinese auto firms gaining strength
and soon to enter in the US markets.