THE EXTERNAL ANALYSIS OF FORD MOTOR COMPANY
External Factors and Economic Environment
1) Market and Customers
Between 22% and 23% (average over past five years) of Ford’s customers are defined as fleet customers as described above. The residual 77%to 78% of customers are private individuals who purchase Ford vehicles through licensed dealers. Ford customers come from all demographic strata given the diverse brand lineup and product mix, and Ford’s products are purchased and driven the world over.
Argus Research estimates that the car market will decrease 3.8% in terms of units sold during 2003, and that light truck sales will increase 0.2%. The company predicts an decrease of 3.9% in car sales and an increase of 0.7% in light truck sales for the company during 2003.
2) Relevant Demographic and Social Trends
Again, because Ford is so diversified across its product and brand base, it is rarely impacted by demographic and social trends. Nevertheless, some trends may impact Ford’s sales mix. For example, as gas prices continue to increase worldwide, consumers are switching from gas guzzling trucks and SUVs to more compact vehicles such as the Ford Focus, Mondeo and Export. And, as the American and European populations continue to age older consumers are buying more traditional models such as the Sabre and the Taurus. But because the company’s product mix is both broad and deep, the company can capture sales lost in one segment by increasing marketing and sales efforts in another. The flexibility of modern production lines also allows the company to rapidly switch from one model to another in order to quickly meet changing consumer demand patterns.
3) Impact of Innovation and Te ...