LO-2: Distinguish Between Standardization and Adaptation
Whenever a company opts for standardization, it is offering to produce similar products for all its targeted customers. As illustrated by Lado et al. (2016), this gives a company the advantage of economies of scale, which then results in a globalized brand image for its product. On the other hand, adaptation bases its arguments on following a market’s needs, thus adapting to the changes demanded by the market. Both standardization and adaptation have their advantages and downsides. For that reason, most companies are mixing up the two concepts in their global strategies. A perfect example is the Ford Motor Company.
Initially, Ford Motors focused more on the adaptation strategy; however, after incurring high production costs, the company decided to shift and adapt the standardization formula. As a result, the company has recorded increased annual profits (O’Rourke, 2017). After launching its One Ford plan, the company shut down a few production plants, and in the process merged some of its departments as a way of standardizing the firm. The company then created synergies of its various business units, whereby they worked towards one marketing goal. The advantage of this strategy was to reduce operational costs while enhancing profitability.
LO-3: Describe How New Products Are Developed and How Existing Products Are Managed For International Markets
Ford Motor Company develops new products through a strategy of diversification. Here, the firm has introduced the One Ford Plan, which helps in presenting new and smaller cars, battery-powered vehicles, plug-in hybrids, as well as environmentally friendly vehicles. Therefore, Ford Motors must consider cost-effectiveness when creating these new cars. At the same time, the company is required to take into considerations aspects of reliability compared to its competitors (O’Rourke, 2017). It is worth noting that diversification is a high-risk strategy, and thus the need to carry out thorough and extensive market research.
As embedded in the One Ford Plan, market penetration is the other strategy of introducing new cars. Ford’s global marketing has always involved all-encompassing market research for more comfortable and faster market penetration. The procedure involves high-quality communication, particularly about its newly developed cars. Better yet, Ford Motors further expands cost-effective cars with the intentions of targeting all classes, from the lower to middle classes (Cooper & Kleinschmidt, 2015). Compared to diversification, this strategy is less risky, thus enabling Ford Motors to feel optimistic over its plans.
LO-7: Discuss Aspects of Customer Service Required For Goods and Services That Are Globally Marketed
One aspect of customer service is differentiation, whereby Ford Company is defining a new range of cars in terms of fuel efficiency, aesthetics, and the latest technologies. For instance, the motor company has adopted most of its top safety features such as break support radar and roll stability (Lado et al., 2016). Moreover, the firm is developing technologies like Navigator, Active Park Assistant, and improved interiors.
The other aspect of customer service offered by Ford Motors as a global strategy is ‘Focus,’ whereby the company specializes in improving its products. For instance, the company is implementing its One Ford vision with the objective to enhance its cost-saving strategy. The company has been expanding its licensed merchandise across the world as a means of augmenting the Ford brand.
Cooper, R., & Kleinschmidt, E. (2015). The Impact of Export Strategy on Export Sales Performance. Journal Of International Business Studies, 16(1), 37-55. doi: 10.1057/palgrave.jibs.8490441: Retrievable at https://bit.ly/2HeUEOJ
Lado, N., Martínez‐Ros, E., & Valenzuela, A. (2016). Identifying successful marketing strategies by regional export destination. International Marketing Review, 21(6), 573-597. doi: 10.1108/02651330410568024: Retrievable at https://bit.ly/2XFIAvJ
O’Rourke, J. (2017). Bridgestone/Firestone, Inc. and Ford Motor Company: How a Product Safety Crisis Ended a Hundred-Year Relationship. Corporate Reputation Review, 4(3), 255-264. doi: 10.1057/palgrave.crr.1540147: Retrievable at https://bit.ly/2H22ZGf
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