ECO 365 University of Phoenix
The Ford Motor Company is one of the most storied and traditional companies America has to offer. Since its advent in 1903, Ford has established itself as one of the preeminent motor companies worldwide and has had considerable success selling their products. From a microeconomics lens, Ford is a fascinating study as well. Because of economic ups and downs, Ford has been forced to sustain successes while adjusting to various economic conditions that the last 109 years have offered.
Henry Ford founded the Ford Motor Company and is headquartered in Detroit, Michigan. His company quickly became a staple of American life, as the success of their vehicles abounded in the company’s early years. It successfully survived the Great Depression and grew exponentially throughout the 20th century.
In the 1990’s, Ford’s stock continued to soar as the economic conditions were favorable and gas prices were cheap. However, as the year 2000 approached, the company began experiencing difficulties because of economic sliding. Ford lost its market share 10 years in a row (1996 – 2005) and lost its place as America’s best-selling vehicle brand to Chevrolet. In response, Ford was forced to make cuts. 30,000 jobs were cut and 14 plants have been shut down since 2006.
As a whole, the auto industry has experienced some of the same negativity that Ford has over the past decade plus. From 1997 to 2010, the industry as a whole dipped 26% due to poor economic conditions. However, more recently the industry has rebounded quite well. 2011 was the best year for the industry in quite some time, although international markets succeeded better than American ones, particularly in China.
The Market in Which Ford Operates
Ford Motor Company is one of the largest automobile manufacturers in the world. Ford operates in both the manufacturing and financial aspects of...