Sunday, June 26, 2011

Ch 8 International Strategies

Over the years Ford has owned many manufacturers like Volvo, Land Rover, Mazda, Mercury, Lincoln, and Aston Martin. With the downturn in the economy over the last few years Ford chose to sell most of them. Mercury is no longer as of early 2011. Ford today owns only Ford Motor Company, and Lincoln. All of the other have been sold. From the early 1960's Ford has been all over the world. Some of their most common places are those of Europe and Asia. Most of the cars here are smaller commuter cars, not the large SUV's we have here in America. Close to 50% of sales of Ford Motor Company came from outside of the US. A very impressive number for anyone. One of their comparative advantages is that people know Ford makes a solid vehicle that will last. Anything American made over the last few decades has a solid report with consumers outside of our borders. Ford has major manufacturing plants all over Europe and Asia. In fact there are even a few in Australia.

The multipoint competition is a part of Ford's international strategy. They do a great job of overcoming various local vehicle manufacturers in various places around the globe. The use of the CAGE framework really comes into play with Ford Motor. Culture of where they are is important because some countries are use to smaller more fuel efficient vehicles while others like the US and Dubai are more luxury based. Administration is well placed with specific manufacturing plants and managing facilities around the world. Geographic comes into play because they are almost everywhere in the world. Economic is important because in order to provide a good product you must show how the product is worth the money spent. And in times of economic tightness, value is a major factor.

I know this is wikipedia, but it has a ton of good info!!
http://en.wikipedia.org/wiki/Ford_Motor_Company

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