Ford Motors: Argument supporting the niche market strategy

Global niche dodge Ford management may have gone finished some extensive intervention and argument to arrive at the point of acquisitions (My assumption). Mr. Nasser believed and argued that in that location was a shift in gondola charter; the world is shifting towards niche simple machine sustenance marketplaces. Ford motors needed to differentiates their cars to fascinate and capture the niche market. specialization occurs when the results of an brass instrument meet the needs of some customers in the market view better than others. A differentiation epitome was impossible for Ford motors to be across the broad put of the market e.g. producing volumes of cars and capturing niche market customers. The cost of differentiation sequence serving the mass market of customers (volumes cars) may be similarly high: if the differentiation involves quality, it may not be believable to offer high-quality and cheap product under the same brandmark name. So a red-hot brand name has to be developed and supported. Then the boldness is compelled to adopt a outline called focus strategy. In the geek of Ford motors, to meet the variations of charter they embarked on the acquisition strategy to gain competitive favour in its target segments.

However, there be some cognize problems about the niche strategy (sometime called focus strategy) and they listed below: - By definition, the niche is small and may not be adult enough to justify attention. - comprise focus may be difficult if economies of scale are important in an constancy such as the car industry. - The niche is clearly specializer in nature and may disappear over time. somewhat small a! nd medium-sized companies have found that this is the nearly useful strategic area to explore because none of the problems listed in a higher(prenominal) place are insurmountable. If you want to get a sufficient essay, regularise it on our website: BestEssayCheap.com

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