Ford and the World Automobile Industry
Ford and The World Automobile Industry
The automobile industry is constantly changing. An automobile manufacturer has to keep up with the trend of vehicles and customer demand. Falling behind will cause the manufacturer to lose its share of market. Manufacturers have to implement strategies to compete and reman relevant in the automobile industry. Some strategies include acquisitions, mergers and alliances, and some cost-reducing measures.
Synopsis of the Case
The automobile industry began in the 1900s. In 1903 Henry Ford began his goal of mass-producing cars, starting with the assembly of Model T, which reduced man-hours to produce and set the standard for the other automobiles (Ford, 2015). In the years to come, production improved when Toyota’s lean production was incorporated into the manufacturing process. New manufacturers came into the automobile industry and began competing, which caused the market to constantly change.
Relevant Factual Information about the Problem or Decision the Organization Faced
The 2008 recession took a massive toll on the automobile industry. The manufacturers in the automobile industry kept their processes running with the assistance of government bail outs and filling for bankruptcy. Although Ford Motor Company, unlike all other manufacturers, did not file bankruptcy (Grant, 2013) the company continues to struggle for survival just as the others do. In order to keep up with the trend of vehicles and customer demand and not continue to fall behind automobile manufacturers were producing millions of cars across the industry. As sales were growing annually, supply began to outweigh the demand. Some companies would have to keep producing even if they dont sell their automobiles, causing more losses for companies such as Ford.
Explanation of Relevant Concepts, Theories and Applications Derived from Course Materials
A SWOT analysis would show that Ford Motor Company has a strong position in US market. It would show that the company is the second largest automobile manufacturer in US, and the second largest vehicle market in the world (Ford, 2015). The analysis