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MMK101 Marketing Fundamental

Assignment 1 Ford Australia Analysis

Name : Low Kai Xiang

Student ID : LOWK1D1701

Submission Date: 24 July 2017

Lecture Time : 1.30pm , Friday

Lecturer : Jessica Helmi

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Table of Contents
1.Introduction ......................................................................................................................................................... 3
2.1 Ford Company................................................................................................................................................... 3
2.1.1 Ford Company Background ....................................................................................................................... 3
2.1.2 Size of Ford company ................................................................................................................................. 4
2.1.3 Growth of Ford company ........................................................................................................................... 5
2.1.4 Industry Trends .......................................................................................................................................... 6
2.1.5 Fords Customers ( target market ) ............................................................................................................ 7
2.2 Fords Competition ........................................................................................................................................... 8
2.2.1 Fords Major Competitors .......................................................................................................................... 8
2.2.2 Fords Market Shares ................................................................................................................................. 8
2.2.3 Fords Strategic Model ............................................................................................................................... 9
2.3 Macro-Environment........................................................................................................................................ 10
2.3.1 Political .................................................................................................................................................... 10
2.3.2 Economic ................................................................................................................................................. 10
2.3.3 Social ........................................................................................................................................................ 10
2.3.4 Technological ........................................................................................................................................... 10
2.3.5 Demographic ........................................................................................................................................... 10
2.3.6 Natural ..................................................................................................................................................... 10
2.4 Fords SWOT Analysis ..................................................................................................................................... 11
2.5 Referencing ..................................................................................................................................................... 12

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1.Introduction

The purpose of this report is to analyse the ford companys industry background which includes
growth , size , industrial trend, strategies that Ford has used to compete in a competitive advantage
and will be continue discussing the competitors and macro-environment of the company. (44 words)

2.1 Ford Company


2.1.1 Ford Company Background

Ford Motor company, is a global automotive and mobility company. Henry Ford founded the Ford
motor company on the 16th June 1903. The company has become one the largest and profitable
automobile company. The company has inherited for 100 years as the form of family control
companies in the world . (51 words)

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2.1.2 Size of Ford company

Ford company, the 2rd largest automobile company in the world is known as one of the best
automobile manufacturer in the world with $164B business empire (referenceforbusiness.com,
2017).Besides , Ford also owns a small stake in Mazda and operate more than 62 plants in the world.
Ford company generates 62% of total sales from the US. In 2015, Ford has more than 12,000
dealerships in the world. Ford also has 201,000 number if employees working with them in 2016(Ford
2016 Annual Report,2016). (82 words)

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2.1.3 Growth of Ford company

The share price of Ford has been a downwards trend in the last two years (picture1). Fords
revenue has been growing at the rate of 4.3% , there are slightly little contracting in 2012 and
2014 (picture2). Shvetsov (21Dec2016) said that there is a potential to grow in this company,
Ford. Over the next 5 years , analysts are expecting Ford company to grow earning at the
average annual rate of 12.27%, (Zack 2016) in picture 3. (77 Words)

Picture 1

Picture 2

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Picture 3

2.1.4 Industry Trends

During the past 5 years , the motor vehicle industry is struggling to perform due to huge increase in
the import competition and high demand for fuel-efficient car . Toyota , Ford and GM Holden has
announced their intention to exit the industry by 2017 due to low import tariff rate and high lobour
costs . Besides it is also expected for a drop in industry revenue of 6.8% annualised to 7.7 billion.
Picture 4 shows the motor vehicle industry revenue trends from year 2009 2023 . Picture 5 shows
the new vehicle sale from 2013 2014 . ( 98 words)

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Picture 4

Picture 5

2.1.5 Fords Customers ( target market )


Ford is targeting a younger generations market which is why they innovate or introduce diesel
Territory model in 2011 in order to match customers preference . Ford also target countries like
Mexico , China and India because they think in the future the sales of car in that countries will
increase ( Etherington , 6 April 2017).

(52 words)

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2.2 Fords Competition
2.2.1 Fords Major Competitors
Ford is a top company in the world. In Australia , there are a lot of competitor that compete with them
such as Volvo , GM Holden , Toyota , Honda and etc . Those competitors are fighting for latest
technology and innovation to improve their product and to stay in a competitive advantage . Ford is
currently ranked top 4 in Australia in motor vehicle industry . (68 words)

2.2.2 Fords Market Shares


Picture 6 shows the market shares in percentage of Ford and other company in Australia . It shows
that Ford has the least market share compare to other major players in the industry (5.6%) . The
reason why there market share is low is because of a high AUS in the past 5 years which makes Ford
hard to export their products . Not only that , a higher demand on fuel-efficient car has hurt Fords
large motor vehicles. ( 79 words)

Picture 6

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2.2.3 Fords Strategic Model

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2.3 Macro-Environment

2.3.1 Political
Australian government are increasingly supporting innovation technology to sharpen the Australias economy .
Therefore , it provides an opportunity for Ford to use government incentives for innovation , sustainable and
environmental friendly products .

2.3.2 Economic
If Australia Dollar is doing too well , it will decrease the export of Ford in Australia . This is because
the price of the vehicle is now higher than before due to exchange rate . On the other hand, it will
increase more vehicle from exports due to cheaper price . Which will hurt Ford Australias revenue .

2.3.3 Social
In recent years , social and culture of people nowadays demands more for hybrid and electric automobiles.
Ford has to take advantage of it by innovating towards current customers demand onto vehicle so that they
can make a lot of profit .

2.3.4 Technological
The rising of mobile computing creates opportunity for Ford Australia to grow by enhancing online
fulfilment service . Besides , with a greater technology , human workers nowadays has been replaced
by machines to decrease their labour cost .

2.3.5 Demographic
With the help of search engine online , its easy to know which customer you are targeting . Not only
that , it is important too to know your target customers area . Ford must not focus in places which
does not gives any interest on their brand .

2.3.6 Natural
Shortage of raw material and resources will limit Fords business expansion as well . Besides , natural
disaster will have high impact on Ford as well as the whole industry .

(254 words)

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2.4 Fords SWOT Analysis

(805 total words for this assignment)

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2.5 Referencing

1. Ford social ,2017 , Predicting the future: The 2017 Ford Trend Report , retrieved 18 July
2017 , available at < https://social.ford.com/en_US/story/ford-
community/community/predicting-the-future-the-2017-ford-trend-report.html >
2. Ball , J 2017 , Millennials are abandoning cars for bike will it stick? , New Republic ,
retrieved 23 July 2017 ,Available at < https://newrepublic.com/article/116993/millennials-are-
abandoning-cars-bikes-carshare-will-it-stick > .
3. Pestle analysis , 4 Nov 2017 , Swot analysis of Ford Motor Company , Pestle analysis ,
retrieved 23 July 2017 available at < http://pestleanalysis.com/swot-analysis-of-ford/ >.
4. Ford Australia , 2017 , Ford cars, SUVs , Utes and Commercial Vehicles , Ford Australia ,
retrieved 24 July 2017 available at < https://www.ford.com.au/ >.
5. Value Based Management , 2017 , Summary of the BCG matrix , abstract , retrieved 24 Julu
2017 , available at < http://www.valuebasedmanagement.net/methods_bcgmatrix.html >.
6. Panmore institute , 2017 , Ford Motor Company PESTEL/PESTLE Analysis panmore
institute , retrieved 24 July 2017 , available at < http://panmore.com/ford-motor-company-
pestel-pestle-analysis >.
7. Shvetsov , D 21 Dec 2016 , Ford : Potential to Grow , seeking Alpha , retrieved 22 July 2017
available at < https://seekingalpha.com/article/4031938-ford-potential-grow > .
8. Meyer , P 5 Feb 2017 , Ford Motor Company : Genetic & incentive growth strategies ,
panmore institute , retrieved 23 July 2017 available at < http://panmore.com/ford-motor-
company-generic-intensive-growth-strategies > .
9. Vault , 2016 , Ford Motor Company profile , vault , retrieved 20 July 2017 , available at <
http://www.vault.com/company-profiles/auto/ford-motor-company/company-
overview.aspx >.
10. Global Megatrend sustainability report 2014/15 Ford Motor Company , 2017 , Global
Megatrend sustainability report , Ford Motor Company , retrieved 24 July 2017 available at <
https://corporate.ford.com/microsites/sustainability-report-2014-15/strategy-
megatrends.html > .
11. Etherington , D 6 April 2017 , Ford to bring plug-in hybrid to China in 2018 targeting mostly
electrified lineup by 2025 , TC , retrieved 24 July 2017 ,available at <
https://techcrunch.com/2017/04/06/ford-to-bring-plug-in-hybrid-to-china-in-2018-targeting-
mostly-electrified-lineup-by-2025/ >.

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