Ford Motor Company's business strategies evolve with the ever changing market place of automobiles. Ford operates much like the Pacific Cycle company that is mentioned at the beginning of chapter 5. They have taken on or bought out many different types of car manufacturers over the years in order to reach a wide array of customers all across the world. One of Ford's strengths is that of their integrated position in terms of their low-cost leadership and differentiation. They do a good job of both at Ford Motor. Their scope of Arenas however would be classified as broad. As was mentioned earlier their footprint is broad and wide throughout the industry. Though there are some threats of integrated positioning like straddling, Ford does a good job of maintaining a balance throughout their production.
One of the phrases that is highlighted in this chapter is economy of scale. With all the production going on at Ford, their economy of scale is important. With the more they produce the cheaper it is to produce. This sounds good at first, but it is a balancing act for Ford. They do not want to produce more cars just to make them cheaper because what if those cars don't sell? They are then stuck with cheap cars that are staying on their books. At Ford, they make sure that they produce just enough vehicles to keep the main costs low while ensuring the vehicles they produce have somewhere to go. This is called minimum efficient scale.
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