Question
Hi there, could someone develop a TWOS strategy matrix based on the following SWOT analysis. Strength 1) Ford is able to lean on a history
Hi there, could someone develop a TWOS strategy matrix based on the following SWOT analysis.
Strength 1) Ford is able to lean on a history of being financially capable during the economic crisis. During the 2008 recession, both GM and Chrysler went into government-sanctioned bankruptcy, while Ford was able to navigate the financial landscape more successfully, something they can point to in order to ensure customers during these times (Wayland, 2020)
2) While Ford along with many other Detroit-based auto manufacturers in the United States had to shut down production in March of 2020 due to the pandemic, they were able to get workers back in factories in a timely matter. By installing extra safety/cleaning measures Ford had workers back manufacturing less than two months after shutting down (Boudette, 2020)
| Weakness 1) During the pandemic while all car sales plummeted, electric vehicles were not hit as hard as more traditional ones. There has been a general shift during recent years as more people buy into the idea of owning a hybrid or fully electric vehicle (Boll, 2021). While Ford produces EVs they have not cultivated a brand that makes people think of them as an EV seller, with much of their advertisement, and even the company home page still displaying large traditional trucks (Ford, 2021).
2) Ford operates over 3,000 dealerships in the United States, employing over 170,000 individuals in these dealerships, all these dealerships had to close during the pandemic. They have also become less relevant as more car sales move online. (Ford, 2021)
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Opportunity 1) The pandemic caused many Americans to open up to the idea of moving traditional in-person interactions to a digital platform. Ford can capitalize on this by introducing more sophisticated online car shopping options, a service many customers outside of America have been enjoying for years, and one that domestic customers are now looking for (Blanco, 2021).
2) During the pandemic a positive aspect was cleaner air in many cities, this heightened the awareness of the world population in the importance to go green (Miller, 2021). With more individuals looking for EVs, I believe there is an opportunity for Ford to enter a niche of the EV market, electric trucks. Ford has a long history of producing high-quality trucks and has now begun introducing electric options for many of their vehicles, and in the market, there are not many EV options for trucks (De La Graza, 2021)
| Threat 1) Due to supply chain bottlenecks, specifically with chip shortages making new cars has become far more expensive (Isidore, 2021). Alongside rising costs due to chip shortages is the surging costs of raw materials such as steel, rubber, and aluminum all rising over the last year has caused production costs to rise in that manner as well (Spence, 2021)
3) During the pandemic both work culture and shopping culture has shifted dramatically. More people are embracing working and shopping from home, if these trends continue it could take approximately 14 million cars off the roads in the US, causing a decrease in demand for cars from producers like Ford (Fleming, 2020).
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