Analysis of Ford and the World Automobile Industry in 2007
History of Ford and the world Automobile Industry:
STEEP ANALYSIS:
1.Sociocultural: A few sociocultural factors have led back the automobile industry. Ford had suffered 10% fall in unit sales year on year with sharp declines in sales due to inaffective execution of the companies strartegies. The survival of ford depends critically on yhe state of the world auto industry.
2. Technological: Earlier horseless carriages were used as a source of conveyance. With the upgradation of technology the Ford Model T was introduced in the market. It was the first dominant design in automobiles. With the passage of time more new designs like VW Beetle with its rear, air cooled engine, the citrogen 2-CV and its idiosyncratic braking and suspension system, and many more inventions. The automotive engineering’s main advances were multi-valvecylinders, traction control systems, all-wheel drive,electronic fuel injection, variable suspensios and intercooled turbos. Earlier it took 23 man hours to assemble a Model T, just after 14 months later it took only four man hours.
3. Economic: To lower costs and to increase flexibility outsourcing of materials, components, subassemblies were increased. In Ford’s giant river Rouge plant, iron ore entered at one end, Model Ts emerged at the other. Ford even owed a rubber plantation in the Amazon basin. The advancement of technology leads to fall in the price of cars.
4. Ecological: The fuel efficiency was increased and more environment friendly vehicles like hybrid cars were introduced to increase upward pressure on product development budgets.
5. Political: Due to liberalization there was a major shift in the political opinion which resulted in demand for less government regulation and greater reliance on market forces. This led to greater completion as there were competitors in large number and ultimately there was and downfall in the prices and the fares.
PORTER’S APPROACH:
Barriers to new entrants
STEEP ANALYSIS:
1.Sociocultural: A few sociocultural factors have led back the automobile industry. Ford had suffered 10% fall in unit sales year on year with sharp declines in sales due to inaffective execution of the companies strartegies. The survival of ford depends critically on yhe state of the world auto industry.
2. Technological: Earlier horseless carriages were used as a source of conveyance. With the upgradation of technology the Ford Model T was introduced in the market. It was the first dominant design in automobiles. With the passage of time more new designs like VW Beetle with its rear, air cooled engine, the citrogen 2-CV and its idiosyncratic braking and suspension system, and many more inventions. The automotive engineering’s main advances were multi-valvecylinders, traction control systems, all-wheel drive,electronic fuel injection, variable suspensios and intercooled turbos. Earlier it took 23 man hours to assemble a Model T, just after 14 months later it took only four man hours.
3. Economic: To lower costs and to increase flexibility outsourcing of materials, components, subassemblies were increased. In Ford’s giant river Rouge plant, iron ore entered at one end, Model Ts emerged at the other. Ford even owed a rubber plantation in the Amazon basin. The advancement of technology leads to fall in the price of cars.
4. Ecological: The fuel efficiency was increased and more environment friendly vehicles like hybrid cars were introduced to increase upward pressure on product development budgets.
5. Political: Due to liberalization there was a major shift in the political opinion which resulted in demand for less government regulation and greater reliance on market forces. This led to greater completion as there were competitors in large number and ultimately there was and downfall in the prices and the fares.
PORTER’S APPROACH:
Barriers to new entrants