ANALYSIS OF FORD AND THE AUTO INDUSTRY

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ANALYSIS OF FORD AND THE AUTO INDUSTRY

ANALYSIS OF FORD AND THE AUTO INDUSTRY

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Ford operates in a highly dynamic industry that is affected by forces within and without. For efficient strategic management, the company has to understand the forces shaping the industry through the SWOT, PETSEL and Porter’s 5 analyses, and align its strategies with them.

Analysis of the Trends and Issues in the Car Industry

Porter’s Five Forces Analysis (P5F)

The threat from new entrants to the profitability of the car industry is minimal. According to Miller (2007), this threat is low because of the many impediments to market entry such as high capital requirements, government policies and legislation (Porter’s Five Forces Analysis of the Automobile Industry, 2010).

            Buyers bargaining power also affects the car industry’s attractiveness and profitability. A favorable situation for the industry would be if buyers had low bargaining power, (Rothaermel 2009).