Threat of substitute goods implies that there can be chances that buyers switch from buying Ford vehicles and opt to purchase vehicles of competitors like GM, Mitsubishi etc. In Australia, buyers willing to purchase cars have ample choices to purchase any vehicle and this shows that the environment in the industry remains competitive with substitute goods available for customers to chose ((Lewis, 2003, p. 104).
Bargaining power of suppliers shows how reliant are the suppliers on the automakers. As suppliers and manufacturers need each other but the suppliers tend to be smaller, they are often asking help from the automakers. Same case exists in Australia for the Ford Company as the bargaining power is not as low as it may appear.
Lastly, rivalry among the competitors is another point in Porters 5 forces model that shows how competitive the industry is. For Ford Australia, the competitive rivalry exists currently as cars from GM, Honda and Toyota have started entering Australian Market in large number creating massive competitive rivalry in the Automotive Sector.
SWOT analysis is another important analysis which is primarily used for analyzing organization’s internal strength, weaknesses, opportunities and threats. In terms of Ford motor Company; this analysis carries significant importance as it can highlight the areas where the company can perform well and overcome its weaker areas. The strengths for Ford motor company in Australia remains the fact that the company has a rich history and has been well known all over the world. It is truly the pioneer in automotive industry and customers buying the cars have a strong image in their sight about ford due to which they prefer going for the brand. With continuous new models of automobiles coming into the market and Ford fulfilling expectations of various segments of customers remains as strong strength for the company.
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