Competitive Analysis between Ford and GM

Discuss the competitive rivalry between the two companies
The auto industry is one of the most competitive industries in the world, with more and more classes and types of vehicles being manufactured and unveiled every year. Two of the leading companies in this industry include General Motors and Ford. The intense rivalry between Ford and General Motors is considered to be the mother of all competitions, with the rivalry starting out as early as 1908. The two companies have been contesting it out for returns, market share, and also boasting rights. In the contemporary business setting, these two major firms in the auto industry are battling a serious content over market share. In particular, General Motors is presently the leader in general, however there continues to be debate as to who is the actual winner. In accordance to statistics, General Motors has a market capitalization of $50.9 billion whereas Ford has a market capitalization of $44.8 billion. With respect to revenues, the competition between the two companies is all the more intense with GM having sales of $166.4 billion whereas Ford generated $151.8 billion in revenues. With regard to the net incomes generated in the latest financial year, Ford had $4.6 billion in profits whereas GM generated $9.4 billion (Dunn, 2017).
How do these firms interact with one another in the competitive environment?
Without a doubt, General Motors and Ford interact with one another in the competitive environment. One of the ways in which this takes place is the pursuit of economies of scale. Being in the automotive industry, the evolution has been steered by the endeavor to find scale economies. This is owing to the reason that the relationship between market share and return on investment for the companies is stronger in industries that are mature compared to industries that are emerging. Another significant manner in which the two companies interact in competition encompasses differentiation. Imperatively, selecting a particular market segment can be a fundamental determinant of dissimilarities in the performances of the firms within the similar industry, such as GM and Ford. For instance, in the present day market, both companies are incessantly trying to escape the serious level of competition in the marketplace through crossover vehicles that are dissimilar from the prevailing market segments. The companies are constantly attempting to satisfy consumers with their needs and come up with features that are not only appealing to them but also beneficial (Grant, 1995).
Would you prefer one company over the other? Why?
Between the two companies, I would have a preference for General Motors. This is largely for the reason that GM is best suited and positioned to seize growth prospects and opportunities. To begin with, General Motors has retailed its Vauxhall together with its Opel brands as an inclusion of its tactic to exit a post-Brexit Europe. In the contemporary world, the company has started tapping into the market in China and as perceived, the sales for Cadillac brand increased by 90 percent in the nation and 11 percent across the globe. Moreover, in the auto market, the most significant growth continues to emanate from sales of trucks, owing to the reason that key manufacturers offer better fuel economy with every model. In particular, General Motors boasts of having 35 percent of the truck market whereas Ford has 30 percent. Most of all, GM can be considered to be more preferable over Ford because the company reported strong growth in revenues and earnings for the last two financial years. In the 2017 financial year, the earnings registered in the first financial quarter rose 33.5 percent on sales. In the past financial year, the stock of the company has increased by 19 percent to sell at $34.90 by mid-way 2017 financial year (Seeking Alpha, 2017).

References
Dunn, J. (2017). Tesla is valued as high as Ford and GM — but that has nothing to do with what it's done so far (TSLA). Business Insider.
Grant, R. M. (1995). Contemporary Strategy Analysis: Concepts, Techniques, Applications. Blackwell.
Seeking Alpha. (2017). GM Vs. Ford: Which Is Best Positioned To Seize Growth Opportunities? Retrieved from: https://seekingalpha.com/article/4086461-gm-vs-ford-best-positioned-seize-growth-opportunities