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Ford Motor Company and Mitsubishi Motor Corporation - Essay Example

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Summary to essay on topic "Ford Motor Company and Mitsubishi Motor Corporation"
I have chosen to investigate that whether Ford is more Competitive than Mitsubishi. Competitiveness is a company's share of world markets for its products. When a firm sustains profits that exceed the average for its industry, the company is said to have the competitive advantage over its rivals…
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Ford Motor Company and Mitsubishi Motor Corporation
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Download file "Ford Motor Company and Mitsubishi Motor Corporation" to see previous pages... More and more consumers are buying automobiles and development of better infrastructure in terms of road networks has yielded more usage of automobiles by the consumers. Ford has a market share of 18% in the global market whereas Mitsubishi Motors has a market share of around 1 to 2%. There is a lot of competition in the automobile market with big giants of US car manufacturers,
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Japan car manufacturers and European car manufacturers across the world. The other competitors include Chrysler, General Motors Corporation, Toyota Motors, Nissan, Honda, Mercedes, and BMW.
To answer my question I've used variety or research methods: Primary research methods and Secondary research methods. Primary research involves obtaining original data directly about the product and market. Primary research data is data that does not exist before, this data is accumulated to answer specific question. I used this research method because it provides the actual date directly from the market and analysis or this data can give accurate results. Secondary research methods include gathering data that has already been produced from relevant sources. Less effort is required in gathering this information and hence more concentration can be done on analyzing this information. The results from research are attached as Appendix-A
Ford Motor Company holds a competitive edge over Mitsubishi Motors as it has captured a market share of 18% world wide as appose to Mitsubishi Motors 1.5% only. Other than North America, Ford Motor Company sales are higher and are steadily growing. Mitsubishi Motors apart from Russian markets has failed to capture any significant sales.
Ford Motor Company has shown profit for the third consecutive year amounting to $2 billion or 1.04 per share giving rich dividend to the investors and gaining trust of investors thereby hoping to get more investments in the next year. Mitsubishi motors trying to survive have suffered an operating loss of 13.8 Billion yen for the first quarter of 2005 alone. Significant root cause being the loss of revenue due to fewer sales in North American markets. Ford Motors Company had a Sales Revenue of $178.1 Billion in 2005 as appose to $171.7 billion in 2004 significantly indicating the increase in the sales world wide. Mitsubishi motors had generated Sales revenue of 485.8 billion yen, down 71.8 billion yen from the same period last year (557.6 billion yen), indicating a downward trend in the sales of Mitsubishi vehicles world wide.
Questionnaires and interviews with the different people have yielded a sure case of popularity of Ford brand names as oppose to the Mitsubishi brand names. Mitsubishi has one ...Download file "Ford Motor Company and Mitsubishi Motor Corporation" to see next pagesRead More
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