Ford Motor Company has been negatively impacted by the technological environment in the following manner: it has to adapt to complex integrated digital solutions in the majority of modern cars. This effect is apparent if Ford is put up for comparison with Tesla, Inc. According to the article by Fosse (2022), “Tesla will make and sell more vehicles than Ford in a little more than a year” (para. 9). Despite Ford’s immensely long history of success in the automobile market, technological progress pushes classic cars away from the spotlight. At the same time, the number of digital features integrated into vehicles increases annually as chips become more complex and new software for automobiles achieves unimaginable heights. However, Ford struggles to match its competitor’s pace due to chip shortages and disruptions in the company’s supply chain (Fosse, 2022). This issue indicates that the firm was not prepared adequately for this technological shift. Moreover, the financial burden of an electric car is significantly lower than that of one that runs on gas or diesel, especially considering their soaring prices (Fosse, 2022). At the same time, with the expansion of manufacturing facilities that focus on electric cars or hybrids and the increased availability of charging stations, this type of automobile will continue its takeover. In conclusion, the technological environment is prone to rapid changes that can force even major companies to change their perspective on the industry. Disruptive innovation is a common method for modern companies to establish their presence in the market. Ford Motor Company suffers from its lagging innovative capabilities that do not match Tesla’s growth rates, proving that the technological environment is paramount for companies of any size.
Work Cited
Fosse, P. (2022). Why Tesla’s revenue will pass Ford’s within 6 months.CleanTechnica.