Force
Analysis
Strength
Rival
Ford Motor company faces a high threat of rivalry. The automotive industry is
a competitive industry to be apart of. Ford needs to compete with top
companies such as Toyota and Volkswagen. The automotive industry has high
exit barriers. This means companies would rather stay competing instead of
leaving the industry because of high costs and investments.
High
New
Entrant
The threat level of entry is low because of how expensive it is to start up an
automobile company and be able to compete with the top competitors that
have been established for years. Entering and exiting this market is highly
expensive.
Low
Substitute
There is also a moderate threat level of substitutes for this industry. Other
forms of transportations include trains, bikes, and public transportation. While
some people look to these for their transportation, most consumers prefer cars
to get around.
Medium
Supplier
The bargaining power of suppliers are also moderate. Suppliers need to
provide the automobile parts such as the raw materials to build the car. They
need to offer moderate prices so the car companies continue working with
them. Suppliers could opt out of business deals if the buyer offers too high of a
Medium
price, giving them a medium amount of control. But they also need to offer
fair prices, giving them a moderate level of bargaining power.
other car companies could be more expensive. The force is medium because
Ford needs to work hard to maximize customer satisfaction to keep its
customers.
