Automobile firm FORD Essay Example | Topics and Well Written Essays - 3250 words

Automobile firm traverse - Essay ExampleThe rise in taxes in recent years has meant that petrol cars pay more(prenominal) VED. Companies have to take into account other laws such as new car warranties and the laws under the EU treaty such as those regarding location and block exemption.The commercialize is oligopolistic. Ford has a high market share in 3 categories of cars. However, international competition, especially from BRIC countries, is a threat. The Ford trademark has lost its magic spell to the masses and is now termed as an old brand. In the market, there are high barriers to entry from fiscal constraints and regulatory requirements. There is threat of substitutes from environment-friendly cars. Backward integration diminishes the force play of suppliers. Customers have high bargaining power in this durable goods industry. The future strategies of Ford Motors should be focused on slashing prices, improving brand image and technological innovation.The automobile indust ry is perhaps an industry that has suffered the most in the current spherical economic crisis situation. Burdened by the lack of consumer credit and cut bear outs in household expenditures, this durable goods industry has had to function setback in sales growth. Furthermore, the credit crunch has meant that the companies have found hard to draw roof from the pockets of investors. Oil price hikes and increase in credit costs pulled up the costs of manufacturing and put the elephantine manufacturers in the same league as small manufacturers with regard to problems faced. Companies like Chrysler have had to cut back on mathematical product in order to trim their inventories and reduce cost. Revill (2008) reports that Ford will reduce production at its Southampton factory in southern England in 2011 to 35,000 units, less than half of the 75,000 the factory built in 2007.Despite this, the automotive industry has done quite well. According to Auto Industry (2007), in 2006, 1.4 zilli on cars and 208,000 commercial vehicles were produced in the UK. SMMT (2009) reports