Running Head: ford author note



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Financial Position
We must first consider the fact that Ford's profitability is eroding, while its competitors have strengthened their financial position. The company's latest sales report states that its new vehicle sales are down over six percent (-6.6%) from January 2017 with new passenger car sales down over twenty-three percent (-23.3%) (Merkle, 2018). Furthermore, the company's recent credit downgrade by Moody's Investor Services (2018) stands as a clear warning sign for the company's short-term future (Moody's Investor Services, 2018). On the other hand, Toyota and General Motors are experiencing significant increases in the fortunes.

FORD
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Reasoning
Today, the company needs to make a choice. The fact that strategic changes can lead to new markets is a well-known fact, but so is the risk of making incorrect assumptions. The advent of electrical vehicles is creating ripples in an industry long dominated by unions and traditional production methods. Whilst, new competitors, have completely skipped traditional retail channels by introducing direct and online sales platforms that bypass traditional dealer networks.


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