Environmental Analysis of the Ford Motor Companys Electric Vehicles

Table of Contents

Introduction
Strengths
Weaknesses
Opportunities
Threats
References

Introduction

Ford is a large automotive vehicle production company that operates in a global market. In line with the latest trends toward a green economy and sustainable development, the company promotes its electric vehicle line. To identify the success of Fords efforts and areas for possible improvements, an investigation of its internal environment is needed. This report provides the findings of a SWOT (strengths, weaknesses, opportunities, and threats) analysis to detect its competitive advantage in the market of electric vehicles.

Strengths

The companys electric vehicle manufacturing is characterized by the following strong features:

Ford adheres to technologically advanced auto production to provide electrified zero-emission automobiles to American consumers (Form 10-K, 2020).
R&D allows for achieving high levels of electric vehicle performance with proper energy sources, operational efficiency, safety, and customer satisfaction (Form 10-K, 2020).
Many models of cars are increasingly including electrified versions (Form 10-K, 2020, p. 1).
Ford is developing a brand-new electric car manufacturing ecosystem by reimagining how electric vehicles and the batteries that power them are created, produced, and recycled (Form 10-K, 2020; Masias et al., 2021).

Weaknesses

Despite numerous strengths, Fords market position, unstable competitive advantage, and reliance on conventional vehicle production are considered weak characteristics. More specifically, they include:

Fords businesses lack motivation and performance emphasis because they are geographically diverse.
Compared to its European and Japanese competitors, Ford has a poor reputation due to the lower quality and affordability of electric vehicles (Ford, 2019).
Fords once-wide range is quickly dwindling as the firm places a stronger emphasis on trucks and Sport Utility Vehicles (SUV). With ambitions to enhance SUV sales in the future, trucks currently account for more than half of Fords overall vehicle sales in the U.S. market (Ford, 2019). Since most customers are concerned about the environment and are turning away from large gas guzzlers, relying on trucks and SUVs is problematic. In this way, electric cars become more suitable in the modern-value world.
The companys scope of electric vehicle production relies on fuel costs and macroeconomic factors, reducing the opportunities for proper advancement of the electrified cars production (Form 10-K, 2020).

Opportunities

In terms of the advancement of electric vehicle production in the future, the company is characterized by such opportunities:

Ford has fruitful opportunities to manufacture electric cars and commercial vehicles that are fuel-efficient and technologically adaptable (Form 10-K, 2020). For instance, they are able to construct electric or hybrid vehicles, which have more alternatives for creating environmentally efficient cars as a result (Form 10-K, 2020).
Ford Motor Company wants to develop a new generation of electric trucks and the batteries that will power future electric Ford and Lincoln automobiles on new, expansive, ecologically conscious, and technically sophisticated campuses for American consumers (Forms 10-K, 2020).
Fords reliance on American markets allows for maximizing digital marketing capabilities in order to increase customer and supplier involvement (Masias et al., 2021).
Ford has a wealth of knowledge in a variety of auto-related fields. The business declared that it would be extending its activities into software, vehicle maintenance, recharging electric cars, and other relevant technology industries (Masias et al., 2021).
The company aims to expand its electric vehicle production throughout volatile markets to reach potential consumers in economically and ecologically challenged areas (Form 10-K, 2020).

Threats

Finally, to maintain its competitive position in the electric vehicle segment, Ford should address the following threats in its environment:

The cost and revenue margin of the company may be immediately impacted by rising steel and steel coil raw material costs.
Due to global environmental advances over the past few years, electric vehicle businesses have faced greater compliance and regulatory risks. Currently, quality and public safety concerns are checked on vehicles. If Ford does not follow the new rules, it could run into big problems.
Non-reliable suppliers in the highly competitive market of electric vehicle manufacturing might serve as a threat to the longevity of Fords electrified cars line (Form 10-K, 2010).