One Ford Strategy
Content
Introduction………………………………………………………………………….3
The effects of the 2008 financial crisis on the global automobile industry……….3
The global strategies of Ford Motor and Nissan after the Recession…………......4
Benefits and limitations of Ford Motor’s and Nissan’s strategies………………...5 Short-term profitability…………………………………………………………..5 Long-run stability……………………………………………………………..6
Conclusion……………………………………………………………………………6
Introduction
The notion of “Global strategy”, in international business literature refers to a company that treats the world as largely one market and one source of supply with little local variation in order to achieve its goal of international expansion (Lynch, 2012). Economic factors, such as the worldwide economy and investment environment sustainability, play an essential part in the change in global strategies of multinational automobile companies. The automobile industry has seriously suffered since the 2008 global economic crisis. Globally, sales volume shrunk significantly and production costs increased rapidly. Therefore, most transnational automobile companies have improved or regulated their global strategies in order to achieve new economies of scale and scope and save localization Research and Development cost. This essay first discusses the severe impacts of the 2008 financial crisis on automobile industry. Second it compares and analyses two world “automobile giants”- Ford and Nissan - to investigate how international automobile companies conduct different global strategies to remain competitive and to keep high level efficiency and effectiveness after the 2008 worldwide economic crisis. Ford Motor’s ‘One Ford’ strategy focused on providing one style to the whole world whilst Nissan transferred their attention to emerging markets like China and the development of high technology green energy vehicles in developed markets like Europe. Thus, the essay concludes on the benefits and limitations of each
Introduction………………………………………………………………………….3
The effects of the 2008 financial crisis on the global automobile industry……….3
The global strategies of Ford Motor and Nissan after the Recession…………......4
Benefits and limitations of Ford Motor’s and Nissan’s strategies………………...5 Short-term profitability…………………………………………………………..5 Long-run stability……………………………………………………………..6
Conclusion……………………………………………………………………………6
Introduction
The notion of “Global strategy”, in international business literature refers to a company that treats the world as largely one market and one source of supply with little local variation in order to achieve its goal of international expansion (Lynch, 2012). Economic factors, such as the worldwide economy and investment environment sustainability, play an essential part in the change in global strategies of multinational automobile companies. The automobile industry has seriously suffered since the 2008 global economic crisis. Globally, sales volume shrunk significantly and production costs increased rapidly. Therefore, most transnational automobile companies have improved or regulated their global strategies in order to achieve new economies of scale and scope and save localization Research and Development cost. This essay first discusses the severe impacts of the 2008 financial crisis on automobile industry. Second it compares and analyses two world “automobile giants”- Ford and Nissan - to investigate how international automobile companies conduct different global strategies to remain competitive and to keep high level efficiency and effectiveness after the 2008 worldwide economic crisis. Ford Motor’s ‘One Ford’ strategy focused on providing one style to the whole world whilst Nissan transferred their attention to emerging markets like China and the development of high technology green energy vehicles in developed markets like Europe. Thus, the essay concludes on the benefits and limitations of each