Company & Industrial Analysis

SWOT Analysis

STRENGTH

Track record of innovation - Even though most players in the Technology &
Operations strive to innovate, Ford's Supply has successful record at consumer
driven innovation.

Success of new product mix - Ford's Supply provides exhaustive product mix
options to its customers. It helps the company in catering to various customers
segments in the Technology & Operations industry.

Strong brand recognition - Ford's Supply products have strong brand recognition in
the Technology & Operations industry. This has enabled the company to charge a
premium compare to its competitors in Supply chain industry.

Talent management at Ford's Supply and skill development of the employees -

Human resources are integral to the success of Ford's Supply in Technology &
Operations industry.

WEAKNESS

Gross Margins and Operating Margins which could be improved and going
forward may put pressure on the Ford's Supply financial statement.

High turnover of employees at the lower levels is also a concern for the Ford's
Supply . It can lead to higher salaries to maintain the talent within the firm.

Declining per unit revenue for Ford's Supply - competitiveness in the industryname
industry is putting downward pressure on the profitability
Extra cost of building new supply chain and logistics network - Internet and
Artificial Intelligence has significantly altered the business model in the Supply
chain industry and given the decreasing significance of the dealer network Ford's
Supply has to build a new robust supply chain network.

OPPORTUNITIES

Customer preferences are fast changing - Driven by rising disposable incomes,

easy access to information, and fast adoption of technological products, customers
today are more willing to experiment / try new products in the market

Accelerated technological innovations and advances are improving industrial

productivity, allowing suppliers to manufacture vast array of products and services

Rapid Expansion of Economy As the US economy is improving faster than any

other developed economy, it will provide Ford's Supply an opportunity to expand
into the US market.

THREAT

Trade Relation between US and China can affect Ford's Supply growth plans - This
can lead to full scale trade war which can hamper the potential of Ford's Supply to
expand operations in China.

Changing political environment with US and China trade war, Brexit impacting
European Union, and overall instability in the middle east can impact Ford's
Supply business both in local market and in international market.

Competitors catching up with the product development - Even though at present

the Ford's Supply is still leader in product innovation in the Technology &
Operations segmen
PESTEL Analysis

Political Factors

Changing policies with new government – We can make an inference after reading
the Ford Motor Co.: Supply Chain Strategy that there can be a transition of
government in near future in most prominent market

Governance System – The present governance system in the industry is facing

challenges and Ford's Supply has to keep a close eye on the change in policies

Armed Conflict – Based on the evidences provided in Ford Motor Co.: Supply
Chain Strategy case study, there is very little change of armed conflict impacting
Ford's Supply business.

ECONOMIC Factors
Availability of core infrastructure – Based on data provided in Ford Motor Co.:
Supply Chain Strategy case study, the government has increased the investment in
developing core infrastructure to facilitate and improve business environment.
Ford's Supply can use it to penetrate tier 2 and tier 3 markets.

Increasing liberalization of trade policy can help Ford's Supply to invest further
into the regions which are so far off limits to the firm.

Efficiency of financial markets – Ford's Supply can access vibrant financial

markets and easy availability of liquidity in the equity market to expand further
globally.

SOCIAL Factors

Education level – The education level is high in the Ford's Supply existing
markets. Based on evidences in Ford Motor Co.: Supply Chain Strategy case study
Gender roles – The gender roles are evolving in the country. Ford's Supply can test
various concepts to cater to and support these evolving gender roles in the local
market

Demographics – For the Technology & Operations sector, Ford's Supply has
demographics on its side

TECHNOLOGICAL Factors
Research and development investment at both macro level and micro level in
Technology & Operations is increasing

Lowering cost of production – The latest technology is fast lowering production

and servicing cost in the Technology & Operations sector. Ford's Supply has to
restructure its supply chain to bring in more flexibility to meet both customer needs
and cost structures

ENVIRONMENTAL Factors
Regular scrutiny by environmental agencies is also adding to the cost of operations
of the Ford's Supply.

Customer activism – Greater awareness among customers have also put

environmental factors at the center of Ford's Supply strategy. Customers expects
Ford's Supply to adhere to not only legal standards but also to exceed them to
become responsible stakeholder in the community

Regular scrutiny by environmental agencies is also adding to the cost of operations

of the Ford's Supply

Paris Climate Agreement has put real targets for the national governments. This
can result in greater scrutiny of environmental standards for Ford's Supply in both
developed and emerging markets.
LEGAL Factors
Business Laws – The business laws procedure that government follows. Are these
norms consistent with international institutions such as World Trading
Organization, European Union etc

Environment Laws and guides – The level of environmental laws in the country
and what Ford's Supply needs to do to meet those laws and regulations.

Legal protection of intellectual property, patents, copyrights, and other IPR rights
in various countries.

PORTER’S FIVE FORCES ANALYSIS

Bargaining power of suppliers of Ford's Supply (weak) - If suppliers have

strong bargaining power then they will extract higher price from the Ford's Supply.

Bargaining power of buyers of Ford's Supply (Moderately high) – If the buyers

have strong bargaining power then they usually tend to drive price down thus
limiting the potential of the Ford's Supply to earn sustainable profits.

Threat of substitute products and services (High) - If the threat of substitute is

high then Ford's Supply has to either continuously invest into R&D or it risks
losing out to disruptors in the industry.

Threat of new entrants ( weak) - If there is strong threat of new entrants then
current players will be willing to earn less profits to reduce the threats.

Rivalry among existing players (High) – If competition is intense then it

becomes difficult for existing players such as Ford's Supply to earn sustainable
profits