Ford Motor Company Porter 's Five Forces Analysis Essay examples
Ford is a well-established American organization that faces many competitors from around the world, such as Toyota, Hyundai, Mazda, and Chevrolet, among other companies. In the Forbes “The Largest Companies in the World” (2016), Ford is in the seventh position. This confirms that Ford is a strong competitor in the car industry since it applies strategies that allow it to be competitive and profitable. Being profitable not only means gain too much in revenues, it also implies to analyze competitive forces. Ford is a profitable company because it has well defined the Porter’s five competitive forces: competitive rivalry, power of negotiation with customers, power of negotiation with suppliers, threat of substitutes, and threat of new entrants.
The first force that has made Ford to become profitable is competitive rivalry. Competition is a strong force for Ford. Ford has maximized its competitive advantage to address Toyota, since this one is constantly innovating its cars, General Motors, and other car companies that do not want to lose their money in closing their business (Ferguson, 2015). Ford has weaken its competitors by producing green products, at low prices, to emit less carbon dioxide. Also, Ford has strengthen its products by doing advertising campaigns focused on its innovative scope, such as gasoline consumption and provisions to facilitate the acquisition of products.