Evaluation Of The Current Situation Essay
1. External Audit
a. The Competition
The level of competition within auto industry is intense. Automakers compete primarily on the basis of price, fuel economy, reliability, styling and utility. Barriers for entry are high and steady. The list of top performers includes General Motors, Toyota and Ford.
General Motors (GM) has been Ford’s competitor since 1920’s. Corporation is headquartered in Detroit and operates in about 157 countries, employing close to 207,000 people. Its most notable industry brands include Chevrolet, GMC, Buick and Cadillac. In 2011, GM reclaimed the title of world 's largest automaker from Toyota, based on its vehicle unit sales throughout the year. GM generated roughly $155.9 billion in global revenue during 2014.
Toyota Motor Corporation is one of the leading automakers operating in the market, in terms of revenue. The company is headquartered in Japan. Toyota employs more than 300,000 workers in its 50 manufacturing facilities across the globe, and the company 's vehicles are sold in more than 170 countries. For its 2014 fiscal year, Toyota generated about $256.4 billion in global revenue through all of its operating segments. Toyota’s competitive advantage is that it is known as “very reliable” brand and it works hard on maintaining high quality of its product.
The Competitive Profile Matrix (Appendix C) compares Ford to its rivals (GM and Toyota) and reveals their relative strength and weaknesses. The…