SWOT Analysis of Ford

Swot analysis of Ford. The Ford Motor Company is an automotive manufacturing US multinational company. Henry Ford was the founder of Ford Motors, and he laid the foundation of the company on June 16, 1903. The headquarter of the automobile company is in Dearborn, Michigan, USA.

Ford’s main products and services are;

  • Fleet Vehicles,
  • Cars,
  • Future Vehicles,
  • SUVs and Crossovers,
  • Commercial Vehicles,
  • Hybrid and Evs,
  • Trucks & Vans.

According to an estimate, the annual revenue of Ford Motors in 2022 was 151.736 billion dollars, and it has increased by 12.72%. Out of which, the net income of the company was -9.012 billion dollars, and it declined by 213.34%. However, the automobile brand has employed approximately 186,000 employees to manage its various worldwide operations..

Ford’s top competitors are;

  • Maruti,
  • General Motors Company,
  • Geely Group, 
  • Toyota Motors,
  • Group PSA,
  • TATA Motors,
  • Nissan,
  • Daimler,
  • Fiat Chrysler Automobiles,
  • Hyundai Motors,
  • Renault Group, 
  • Honda Motors,
  • Volkswagen,
  • Tesla Motors.

Today, we’ll talk about the swot analysis of Ford. It’s going to analyze the internal and external factors impacting the world’s leading automobile company. Here’s the swot analysis of Ford as follows;

Strengths of Ford 

Global Brand

Ford has a vast global network of manufacturers and distributors in more than 62 countries worldwide. The automobile company follows its methods and procedures while manufacturing vehicles. The brand has employed over 186,000 people to run its various functions worldwide.

Accepting the Change

Ford has always had a flexible attitude toward adopting the latest technology and new trends. It has allowed the automotive brand to develop a vast portfolio in order to target various types of customers. However, it has helped the company to gain a competitive edge. Now, the company is working on powertrain, cabin technology, and lightweight to improve quality and performance.

Product Portfolio

Ford has a diverse product portfolio ranging from Trucks, SUVs, minivans, and cars to hybrid vehicles. It’s to cater to the needs of different types of people in various demographics across the world.

Research & Development

Research and development are one of its top strengths of Ford. According to an estimate, Ford Motors has spent approximately 7.1 billion dollars on research and development. It shows the commitment of the company to innovation and continuously improving the quality of its products in terms of customer satisfaction, safety features, designs, and fuel efficiency.

Recognized Brand

Ford has established a great brand name in the automobile industry through quality, promotion, and market over the years. According to an estimate, the brand value of Ford in 2020 was 12.6 billion dollars.

Market Value

According to an estimate, Ford ranks at the 5th position of the world’s largest vehicle manufacturing company. It’s the 2nd largest in the US market. However, the market value of the automotive company in 2020 was 27 billion dollars. It has dropped from 50 billion dollars during the pandemic crisis.

Weaknesses of Ford 

Relying on the US Market

The US and Europe are the major markets for Ford and the company sells a great number of its vehicles in both markets. However, China and India are the world’s largest consumer markets and many automotive companies are shifting their focus there. It seems like the brand is limiting its growth opportunities.

Negative Reputation

Many customers consider Ford’s vehicles like Lincoln inferior and cheaper as compared to the others brands, especially Germans, English, and Japanese. The negative brand perception drops the sale of the company.

Weak in Asian Market

Ford has indeed reached many geographic areas across the globe, but the performance and productivity aren’t equal in various markets. Ford’s sales and market position are very weak in the Indian and other Asian markets.


Ford recalled approximately 830,000 Lincoln vehicles from the market to fix the faulty door latches. It impacted the company in two ways; increasing costs and negative brand perception. However, the brand also recalled some of its vehicles in 2015 to fix the safety airbags.

Opportunities available to Ford 

Autonomous Vehicles

Ford has invested a lot of resources in AI and self-driving technology. The company plans to launch an autonomous vehicle in 2021. However, Ford has also made an alliance with Postmates and Walmart to optimize the future of delivery service.

Digital Marketing

We’re living in world of digital and social media platforms like Facebook, Google, YouTube, Instagram, TikTok, Twitter, LinkedIn, etc. Many companies have launched their pages on various platforms to connect with their customers. Ford should also increase social media marketing and promotional strategies to expand customer engagement. It would help the company to reach new customers and increase sales.

Developing Markets

Ford should divert its focus to the world’s largest consumer markets like India and China. They have great growth potential. Penetration into these markets would help the company to expand the customers of the automobile brand.

Environmentally Sustainable

Ford has recently launched an electric vehicle by the name of the 2021 Ford Mustang Mach-E SUV. The company has a long way to go to reach the level of Tesla’s electric vehicles. However, it’s a great of the automotive brand towards environmentally friendly modes of transportation.

Threats Ford has to face 


Ford has to comply with various regulations like safety measures, quality control, carbon emission level, and many others. They vary from country to country. The automobile brand could face severe issues in case of failure to meet those demands.

Costly Material

The cost of coil and steel has increased a lot in recent years. They’re the main elements in the production of vehicles. However, the company sells its vehicles at a lower cost. The costly material further narrows down the company’s profit margin.


Honda, Tesla, and Toyota are the main competitors of Ford in the automobile industry. They’re expanding their market and customer market with innovative features. It poses a severe threat to the automotive and makes it difficult for the company to maintain its position.

Canadian Labor Union

The Canadian automotive labor union has a strong influence on the automotive companies that are operating their business in their country. They are forcing the company to safeguard their employment contracts in the long term. Recently, the company invested 1.4 billion dollars in the Windsor Plant as a part of the deal with the union

Conclusion: Ford Swot Analysis Example Company

After a careful study of the swot analysis of Ford, we have concluded that Ford is indeed the world’s leading automobile company. The costly material, recalling, economic recession, and competitors are some of the main challenges. Ford should utilize its resources towards research and development and recheck all of its vehicles before launching them in the market; while keeping in mind the internal strengths weaknesses; external opportunities threats of automobile brand swot analysis example company.

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