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Competitive cost structures

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Competitive cost structures
The company has adopted a strategy that minimizes on the production costs and the
operational costs that spun from product generation to maturity. Although the
partnerships are strategically different modes of achieving the primary objectives, it
remains a related element to the aspects of enabling a competitive cost structure with
an ability to sustain the evolving product image of the company.
To ensure sustainable pricing of its products, Ford has demonstrated its ability to
maintain a low-cost production plan that will enable customer-oriented prices. This
strategy aims at establishing Ford as a company that leads in respect of price in relation
to other competitors in the automobile industry. As a price leader, Ford will be able to
induce other market features that remain advantageous to its operations on the global
market.
Growth strategy
Ford believes in the strength of growing its product portfolio in order to achieve its
objective of maintaining strong market autonomy. Initially, Ford produced heavy
automobile as compared to its immediate competitors such as Toyota, Honda, and
Hyundai. To ensure that it reaches its target segments, it has formulated a strategic
expansion aiming at producing products that address the varied needs of its growing
clientele.
Because of the growing needs for light vehicles, the company has tended to shift from
the heavy automobile toward light-vehicles and other automobiles that consider the
economies of consumption and costs (Shafer et al., 2005).
This strategy favors the ongoing challenges of the skyrocketing fuel prices and declining
availability of oil in the market. To cope with these market realities, Ford Company has
ventured into utilizing the automobile technology that embraces these market-driven
dynamics (Shafer et al., 2005).

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Competitive cost structures The company has adopted a strategy that minimizes on the production costs and the operational costs that spun from product generation to maturity. Although the partnerships are strategically different modes of achieving the primary objectives, it remains a related element to the aspects of enabling a competitive cost structure with an ability to sustain the evolving product image of the company. To ensure sustainable pricing of its products, Ford has demonstrated its ability to maintain a low-cost production plan that will enable customer-oriented prices. This strat ...
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