Group Members : Himanshu Leel A04

Vivek Tyagi A10

Ravi Ranjan A17

Raj Kumar Gupta A18

Chirag Khare A19

THE WRECKING CREW

Ford

Innovative strategy

Implementation of assembly line

Ford’s World Car

Introduction

Introduction Of Ford’s Model-T

Low cost of product key for competition

Fall of Demand during 1926-27

Substitution of Second hand Car

History

Meaning of World Car.

Only Volkswagen’s classic beetle and Toyota’s corolla have come close to succeeding.

Introduction of Ford’s World Car. Failure faced by the company.

Ford’s World Car

1st attempt in 1960 Ford Star liner

It comes before the entrance of globalization Most cars were produced for domestic markets

Innovative but not successful

Expensive because of bulk size

Ford towards world car

2nd attempt in 1981

Introduction of Escort model all over the world.

Although successful, it was not a world car.

Reason- Only two minor parts were Identical in the European and North American versions.

Ford towards world car

1960 First attempt to build a world car1981 Second attempt, Ford Escort Two versions 1986 Third attempt is started One U.S.-

European engineering team1993 Production and sales in Europe1994 Production and sales in U.S.

3rd attempt in 1986 Ford was European leader in 1984. Slipped to 5th position in 1992.

Ford towards world car

Introduction of Mondeo In European Market.

Introduction of Mystique-Contour.

Sales were quite good from the beginning.

470,000 units in first 15 months

chosen as the European car of the year in 1994.

Mystique-Contour-Mondeo

Mondeo in Europe

Mystique in U.S.

90% of the elements are Similar.

Seat belts and air bags had to be adapted to the local markets.

Comparison between Mondeo And Mystique

To optimize the scale of production.

As One Menu is working for McDonalds.

Economies of Scale.

According to ford,25% of production cost could be saved.

Why World car project ?

Ford’s Estimation: Cost of supplies reduced by $150 a car.

Economies of scale

7 to 8 years to develop the car.

Only 10% of the Mondeo was different from Contour and Mercury Mystique.

This 10% raised the cost level of the car to $6 billion.

Also, delayed its introduction in North America.

Analysis

Earlier reports: $150 savings per car .

In actual, Ford had to make $200 extra investment per car.

Table: no of unit sold by Mondeo and its European market share in medium sized car segment.

Analysis Continued..

All firms that internationalize their operations at one time or the other are confronted with conflicting demands.

Coca-Cola is a global brand.

However, the taste of the beverage varies regionally.

Even McDonalds adapt its menu to local demand.

Conclusion

References: http://www.ai-online.com/news/120500FordMondeo.htm http://www.anx.com/downloads/ford.pdf http://www.justauto.com/features_print.asp?art=305

Thank you !!