It mainly includes competition analysis and environmental monitoring and forecasting. Firstly, explain the overall competition situation of the automobile industry, and then explain the reaction of the six major companies in the automobile industry to the competition; On the basis of external conditions, the strengths, weaknesses, opportunities and threats of Ford are analyzed by SWOT.
First, the main force of industry competition
In the bargaining power of competitors, new entrants, suppliers and customers and the threat of substitutes, the main force to control industry competition lies in striving for a favorable position.
1. Strive for a favorable position among competitors.
The following companies constitute the main competitors in this industry:
Three American companies-Ford, GM and Chrysler, and three Japanese companies-Honda, Toyota and Nissan.
(1) In the late 1980s and early 1990s, the automobile industry grew slowly, and people used preferential policies such as discounts to stimulate consumption growth.
(2) Japanese companies attract many American customers with better quality and cheaper products.
(3) Compared with the three major American automobile companies, Japanese automobile companies use high technology to control costs. However, the three major American automobile companies have invested heavily in the modernization of production systems and cooperated with foreign companies to improve efficiency. For example, Ford and Mazda jointly produce detectors; ; Chrysler and Renault of France jointly produce mini cars; Chrysler and Hyundai will produce a new medium-sized car.
(4) American companies are taking measures to acquire small companies located in foreign countries in order to diversify their product lines and make use of the independent spirit and creativity of small companies.
(5) Japanese companies invest heavily in American factories to avoid import restrictions; 1992 after the formation of the real European market, European companies are doing similar things to avoid the new strict trading system.
2. The threat of new entrants
(1) At this time, economies of scale restrict any major competitor from joining the automobile industry.
(2) The capital demand for automobile production has greatly increased, and the possibility of entering the market is getting smaller and smaller. The development of robots and other automation technologies is expected to control costs. However, the development and implementation of these automation technologies require huge pre-project costs, research and development costs and complex technicians.
(3) The government's policies on exhaust emissions and fuel consumption will further limit the threat of new entrants entering the market. 1990 the average economic fuel consumption of American cars was 27.5mpg.
3. The bargaining power of suppliers, the single source of supply and the cooperative relationship between users and suppliers in the manufacturing system have maintained an increasing trend.
(1) Major auto parts suppliers from Japan, the United States and Europe have started to build factories in other countries.
(2) It is more and more common to sign long-term contracts with suppliers.
(3) General Motors signed an indefinite long-term agreement with its two major capital equipment suppliers.
(4) Chrysler has signed five-year contracts with several major tool production companies.
4. The bargaining power of customers The following trends are attributed to fierce competition, slow sales and the subsequent high inventory level:
(1) In order to attract customers, manufacturers compete to reduce prices and give discounts.
(2) Customers can bargain to a certain extent on service items such as price and guarantee.
(3) Company managers gradually adopt service levels to measure sales performance. These grades are often used to determine the opportunity of issuing authorization, the criteria for obtaining advertising funds and other economic benefits.
5. The threat of substitute products or services
(1) Major companies cannot provide a suitable market segment like professional car companies.
(2) Faced with the increasing cost of car purchase, insurance, parking and maintenance, residents in big cities have turned to public transportation. In recent ten years, the competition in the automobile industry has become increasingly fierce. The entry of Japanese companies into the American market has prompted the three major American auto companies to re-evaluate their marketing strategies and industry status. Therefore, American and Japanese companies are striving to be more competitive in technology, which will make the products low in cost and high in quality. The competition between the three major American companies and major foreign competitors for market share with high quality and low price products will continue to benefit consumers.
Second, the general situation of competitive countermeasures
According to the data in Table 2-5, Table 2-6 summarizes the competitive reactions of Ford, General Motors, Chrysler, Toyota, Honda and Nissan.
Three. Environmental monitoring and prediction
1 economic environment
There are several economic factors that affect the development of the automobile industry and Ford Motor Company, such as interest rates, rising gasoline prices, the value of the dollar and the overall economic environment in the United States.
In order to predict the economic changes, economists and other economic analysts of Ford Company have analyzed many economic variables or "main indicators", some of which include wholesale and consumer price indices, durable goods orders, consumer debt, GNP growth and interest rates. Usually, in a complex economic forecasting model, these variables are always dependent variables to simulate the economy and accurately predict the economic trend.
Several famous economists of Ford Company predicted that the economy would grow slowly at a rate of 1.5% in 1990. In the first half of the year, inflation and unemployment rate rose, interest rates fell, and the dollar was relatively weak. In the long run, it is expected that gasoline prices will continue to rise, and production costs will be used to ensure safety, control pollution and fuel consumption.
The number of Japanese cars assembled in North America will soon reach 2 million a year, and there will be an oversupply situation, which may threaten the price structure of the American auto market and have a negative impact on the income of various businesses in the American market.
Although most economists think that the American economy will have a downward trend, they have different views on the prospect and possible time of economic recession. The U.S. Department of Commerce predicts that new car sales will decrease by 1.3% in 1990, but will increase year by year thereafter until 1994.
2. Political environment
For automobile manufacturers, the 1990s will mark a new era of increasing government control system and environmental pressure, prompting them to improve fuel efficiency, safety standards and pollution control. The demand for clean air, global warming and the introduction of new fuel consumption standards will cast a shadow over Ford's new product plan. Therefore, some analysts predict that by the year 2000, the fuel consumption standard will reach 40-50 miles per gallon.
However, there will be greater changes in the world, such as the expected 1992 European economic unification, the great changes in Eastern Europe, the economic development of the former Soviet Union, and the great potential of China's market economy. In Europe and Australia, Ford has huge market potential, sales network all over the mainland, and assembly plants in Britain, Germany, Belgium and Spain. In order to prepare for the development in Europe after 1992, the company acquired Jaguar Limited in the early 1990s, and intends to acquire the shares of Saab Automobile Company in Sweden.
A summary of the competitive countermeasures of the six major automobile manufacturers
Ford also owns a 25% stake in Mazda Motor Company of Japan. With the automobile industry becoming a truly international industry, Ford will also seek joint venture partners abroad.
The political changes in Eastern Europe may have opened up a huge untapped automobile market, and the labor market is also very favorable, and the opportunities for trade, investment and sales will be improved. But there are still a few people who think that things will not develop so fast, because the political situation is still unstable, the infrastructure is not perfect, and the lack of money is also a problem. However, American, European and Japanese companies are already planning to negotiate with officials from Eastern Europe and the former Soviet Union to share market share.
In China, the development prospect of the automobile industry is not very clear, and Ford has not taken any obvious action in China. GM abandoned its plan to establish a joint venture with Fuji Motor Company in China. Most analysts always think that many industries in China market are profitable, but because of the underdeveloped economy in China, the profit of automobile industry may be slower.
3. Social environment
The research on social and economic trends in the 1990s shows that there will always be a large number of buyers in the automobile industry, who are inclined to buy and have the financial resources to buy new cars. Among them, three groups of people are of special significance to the automobile industry, namely, people born during the period of rapid population growth, women and the elderly.
The first group will have more free income to buy cars, and quite a few people will buy luxury cars or sports cars. Their demand for recreational vehicles and the elderly will also increase, while the demand for vans and minivans will decrease because their families are mature. However, the blue-collar market segment in the first group prefers American cars and domestic minivans.
More and more women will buy new cars and are expected to show the same purchasing power as men in the automobile market. The success of the automobile market in the 1990s will lie in advertising such women.
The last important group is the elderly over 55, who account for 25% of new car consumers, and this proportion will increase. Older buyers tend to drive safely and conveniently, including electronic systems to warn drivers who want to sleep, inconspicuous dials and simplified electronic control devices.
4. Technical environment
The future cars will be easier to operate and equipped with intelligent systems: fast and agile computers will make the engine and transmission system run more efficiently; Electronic suspension system and radar obstacle scanning system will help drivers avoid car accidents; The navigation system displays various alternative routes on the screen to help drivers avoid traffic jams. Automatic color-changing glass and infrared system can improve visibility at night, and anti-lock braking system, airbag and traction control will be standard.
The use of plastic will increase because it is light, cheaper than steel and will not corrode. Using computers to design models and prototypes will become the future trend. In the next five years, there will be 1 10,000 electric vehicles in Southern California.
In production, the use of robot technology will be more extensive. In the 1990s, automobile manufacturers will develop cars using alternative fuels.
Fourth, the SWOT matrix analysis of Ford Motor Company
Based on the analysis of Ford's external environment, the following SWOT matrix analysis can be drawn:
1. Advantages
Ford is the second largest automobile and truck manufacturer in the world.
(2) 1988, Ford's revenue reached the highest level in history ($5.3 billion, or $0.96 per share), which was also the highest among all automobile companies.
(3) Ford's mass production capacity enables it to achieve economies of scale.
(4) Ford's business organization is very balanced, and the diversification of its financial services and product production can make it resist any downward trend of automobile sales.
(5) Ford Company implements vertical integration strategy. Taking the Group as an example, Ford Glass Company produces all the glass used by Ford cars and trucks in North America, and Ford Credit Company provides funds for 6,543,800 vehicles at 1988, and provides credit to dealers and mass consumers.
(6) Ford has successfully cooperated with foreign companies to diversify products, update manufacturers' technology and improve product quality.
(7) Through cooperation with Mazda and Nissan, Ford reduced the cost and improved the quality.
(8) Most Ford products are designed and produced by means of computer aided design (CAD) and computer aided manufacturing (CAM).
2. Deficiencies
(1) Compared with Japanese competitors, Ford Company spends more income on pensions and salary benefits.
(2) Ford did not use all robots and other cutting-edge technologies in production.
(3) Ford must export products to meet government regulations: technically, it does not meet the fuel efficiency standard of 27.5 miles per gallon. Legally, cars with a localization rate below 75% are considered as imported products.
Step 3: Opportunity
(1) has a manufacturing plant in Japan.
(2) There are ways to reduce the cost in the production and sales of automobiles, which are called Alpha Project.
(3) Cars that produce alternative fuels to meet air purification recommendations.
(4) Benefiting from the re-established product quality, "quality first".
(5) With the help of technology and overall efforts, the joint venture can achieve the best quality.
(6) European economic integration has increased the global market potential.
threaten
(1) Imported cars occupy a large market share.
(2) The sales of the automobile industry are slow.
(3) the exchange rate between the Japanese yen and the US dollar.
(4) Japanese manufacturers enter the luxury car market.
(5) Increase government restrictions.