• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Ford’s Pricing Strategy.

Extracts from this document...


Ford’s Pricing Strategy.


Ford Motor Company may be the world's No. 1auto makers, but they seem to have run out of gas in Europe. They are steadily losing market share and are marginally profitable at best. Ford showed just how bad things were on February 18th when it launched a drastic restructuring programme. This resulted in layoffs and plant closings, the company also slashed its European production capacity by up to 25%--or 525,000 cars a year.

Fords Aim

We are a global, diverse family with a proud heritage passionately committed to providing outstanding products and services that improve people's lives.
Our Values. The customer is number one. We do the right thing for our people, our environment and our society.

...read more.


Declining profits and market share

It's about time Ford attacked its cost problems. The company earned only $28 million in the region last year on sales of $30 billion, while its market share fell to 9.5%, from 11.7% in 1995. This result suggests that Ford have a profit problem of serious magnitude. Ford has the capacity to make about 2.25 million vehicles in Europe but sold only 1.7 million there last year.

How to gain success

A key to cutting the increasing loss will be to cut 1,500 jobs at its largest British plant in Dagenham, where it makes the Fiesta, and

...read more.


The company has also spent an estimated £400,000 on newspaper advertisements to try and promote the car and brand and attract new customers.

New Pricing Strategy

Due to the overwhelming pressure faced in the ever-growing car market ford have reluctantly been forced to produce a new pricing strategy. This has now meant that they have been forced to reduced prices in Britain aligning them somewhat to those prices experienced on the continent.


A change in pricing sttaretgy for ford seems long overdue as the company has to in some way stop its falling market share.

...read more.

This student written piece of work is one of many that can be found in our GCSE Gary's (and other) Car Sales section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE Gary's (and other) Car Sales essays

  1. Used Cards - find which factors will influence the price of a second hand ...

    28 5 12500 5 23 -18 324 178 5 12500 5 23 -18 324 75 8 22000 16.5 26 -9.5 90.25 Total Sum = 2528.75 Method - Spearman's 6 x 2528.75 = 15172.5 19 squared = 361 19 x 361 = 6859 15172.5 1 - 6859 1 - 2.2120572 Rank

  2. Ford Motor Company

    Plus they have looked at removing the upper and middle management's annual bonuses to further reduce costs. In terms of reducing variable costs the company aim to reduce raw material costs between 2001 and 2004 by 10%. (European Business Review, 15(2), 77 - 86).

  1. Legal and Ethical Analysis of Ford Pinto

    Negligence, legally it means that the defendant has acted contrary to the way that a prudent person would have in similar circumstances. In negligence cases, the plaintiff must show that the defendant had a duty to exercise reasonable care and failed in that duty, resulting in injury to the plaintiff (LII).

  2. Marketing Strategy Of Ford

    They are transforming themselves into a consumer focused team. They are changing their attitudes, behaviors, and culture so they can put the consumer first. The company is learning to view their business from a customer's perspective to dramatically improve their products and services and start new businesses.

  1. Maths Coursework: Car Sales

    size * No strong correlation at all between the present price and the engine size * There is no correlation between the decrease in the price of the car per year and the engine size * The engine size does not affect the depreciation of the cars much more than

  2. Ford Motor Company

    (European Business Review 2003 Volume: 15 Number: 2 Page: 77 - 86). This excess capacity harmed Ford as they had to offer discounts and other attractions to gain customers to maintain their market share; this reduced their profit per unit of output.

  1. Used car prices.

    18 - 4 = �14k The mean can be found by dividing the number of cars by means of the number of makes. This can be written as the following: Mean = ? Frequency � Mid-interval ? Frequency Mean = 21 + 45 + 11 + 39 + 30 +

  2. Used second hand cars

    These smaller groups are called clusters. One or more clusters are chosen using random sampling. This is called cluster sampling. The sample is then every member of the clusters chosen. Cluster sampling is very cheap but it can be biased if the clusters are different.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work