Degree of Globalisation of Ford Motor Company

3667 WordsDec 4, 201015 Pages
In this report i do an analysis of the degree of globalisation of the automotive industry with special interest in Ford motor company. This analysis begins with an introduction to the automotive industry then it covers industrialisation of the automotive industry, also globalisation of the automotive industry and lastly global integration of the automotive industry. Secondly we focus more on a case study of ford motor company which covers a brief background of Ford, then i consider the challenges of competing globally and end with product differentiation as an appropriate competitive strategy for the Ford Motor company. The Automotive Industry Global vehicle production has more than doubled since 1975, from 33 to nearly 73 million in…show more content…
Japanese automakers have instituted innovative production methods by modifying the U.S. manufacturing model. They are also capable of adapting and utilizing technology to enhance production and increase product competition. Starkey,K. & McKinlay, A(2007:75) argues that the rising competition and increasing global trade are the major factors in improving the global distribution system and has forced many auto-giants such as General Motors, Ford, Toyota, Honda, Volkswagen, and Daimler Chrysler, to shift their production bases in different developing countries which help them operate efficiently in a globally competitive marketplace. Globalisation of the automotive industry Firms globalize when they attempt to integrate key day-to-day functions on a global scale, such as component sourcing, vehicle development, new model introduction (the Big Three’s investments in Mexico are a good example). From a geographic point of view, the world automotive industry is in the midst of a profound transition. Since the mid-1980s, it has, like many other industries, been shifting from a series of discrete national industries to a more integrated global industry. Global integration embeds firms in larger regional and global-scale systems of production, consumption, innovation, sourcing, command and control. These global ties have been accompanied by

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