S. economy. It is clear that in the wake of change, and especially growth of competitive systems profitably tends to decrease in all traditional markets. ("Japan's Car Giants Escape" NA) 4.Which companies are likely to be most successful over the next 5 years?

Emerging markets, i.e. foreign competitors are likely to be most profitable over the next five years and in second any existing corporation who has foreseen the massive changes in auto manufacturing and implemented effective and economical models. When discussing emerging markets one must also consider the fact that the traditional auto industry (mainly in the U.S.) has been historically resistant to the development of ecofriendly autos, short of developing a scrap/recycling industry that has made the raw materials that have gone into cars in the past fodder for huge industry growth.

Ealey, and Troyano-Bermudez 72) for this reason and many others eco-friendly manufacturers have emerged, marketing alternative fuel, all electric and other vehicles in a side market that will likely continue to eat away at traditional sales in the traditional auto industry for many years. These companies, though they have existed for a long time have always been a very low profit eating niche market industry and yet with economic decline and increased demand for alternative fuel vehicles they now have showrooms in major urban areas and are "off the internet" per say, and seeking to become non-direct marketers as they have always been. Traditional market players must respond, basically by demanding the development of such autos, to retain a competitive edge over this niche market and to keep the sales that would have gone to the eco-friendly sellers by offering comparable offerings.

Brown 31)

What should Ford do to improve its profitability over the remainder of the decade?

For ford to retain its profitability, a significant goal, it must become more competitive in the eco-friendly market as well as decrease production...

Ford Motor Company was also a leader in globalization, becoming a Multi-National Corp early in the 1970s and this trend must continue to be active and retain its competitive edge. If this global MNC status wanes, through economic downturn the company will likely feel it globally as well, and therefore trends in economy and local and global standards must be watched closely and responded to almost before they change the market, be it in the positive or the negative.
Studer-Noguez 14) it is clear that Ford has always prided itself on its ability to predict and quickly respond to market trends, hence the example of early globalization, but this has become even more difficult in the last 20 years as the industry has become not a top 10 major company structure but more like a top 25-30 manufacturer market. Ford must also pay close attention to national and international labor fluctuations to retain, or some would say regain its competitive edge. In short the company must innovate not only in vehicles and expansion but in trend watching.

Works Cited

Bidwai, Praful. INDIA: "World's Cheapest Car Environmentally Costly," Jan 16, 2008 http://www.ipsnews.net/news.asp?idnews=40805.

Brown, Lester R. "Planning for the Eco-Economy." USA Today (Society for the Advancement of Education) Mar. 2002: 31.

Ealey, Lance a., and Luis Troyano-Bermudez. "The Automotive Industry: A 30,000-Mile Checkup." The McKinsey Quarterly (2000): 72.

Japan's Car Giants Escape Domestic Woes with New Assault on U.S. Market." Sunday Business (London, England) 12 Jan. 2003: NA.

Klier, Thomas. "Determinants of Supplier Plant Location: Evidence from the Auto Industry." Economic Perspectives (2005): 2.

Rubenstein, James M. The Changing U.S. Auto Industry: A Geographical Analysis. New York: Routledge, 1992.

Studer-Noguez, Isabel. Ford and the Global Strategies of Multinationals: The North American Auto Industry. London: Routledge, 2002.