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Case Study: Mondeo As Tmodel

897 Words4 Pages

Ford always wanted to have a global car that has the same platform, features and parts all around the world. They tried to go globally three times, 1960, 1981 and 1984. This case talks about the benefits and drawbacks of going universally. One of the big challenges for going globally is choosing the right location. Going globally means producing in higher quantities, which means it will be good as achieving better economies of scale. The firm can have one factory that will source the whole world. On the other hand, going for local market will make the manufacturer have better connections with the environment, local people and local market. Ford has introduced Mondeo in year 1993 as the “World Car “. Ford decided to go globally for many reasons, such as: economies of scale, higher flexibility and to have a global image. Economies of scale, as we discussed earlier, make better profit margin through producing more. Flexibility means to have more flexibility in suppliers and producing. Global image is to have unique identity and image just like Coca-Cola, …show more content…

Why? No, Ford Mondeo cannot be successful as a global car as the T-Model, Due to many reasons such as: • Nowadays, each country has its own rules and regulations, so it is hard to have a standard for the whole world. • Nowadays, customer preferences differ from a country to another. • There is a lot of challenges to achieve the same quality among different factories in the world. • Geographical terrain differs from a country to another, for example: in Europe they prefer manual transmission while in united states they prefer auto. • The difference between the savings by economy of scale and the spending by the development effort is $50 for each car, so the Mondeo is not efficient in the price as the T-model. Ford has faced many challenges to make the Mondeo car as a global car, what are these challenges? (1-3

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