Fords Motor -World car Case study Mondeo and Mystique

2. Group Members :
 Himanshu Leel A04
 Vivek Tyagi A10
 Ravi Ranjan A17
 Raj Kumar Gupta A18
 Chirag Khare A19

3.  Ford
 Innovative strategy
 Implementation of assembly line
 Ford’s World Car

5.  Introduction Of Ford’s Model-T
 Low cost of product key for competition
 Fall of Demand during 1926-27
 Substitution of Second hand Car

6.  Meaning of World Car.
 Only Volkswagen’s classic beetle and Toyota’s corolla
have come close to succeeding.
 Introduction of Ford’s World Car.
 Failure faced by the company.

7. 1st attempt in 1960
 Ford Star liner
 It comes before the entrance of globalization
 Most cars were produced for domestic markets
 Innovative but not successful
 Expensive because of bulk size

8. 2nd attempt in 1981
 Introduction of Escort model all over the world.
 Although successful, it was not a world car.
 Reason-
Only two minor parts were
Identical in the European and
North American versions.

9. 1960 First attempt to build a world car
1981 Second attempt, Ford Escort Two versions
1986 Third attempt is started One U.S.-European
engineering team
1993 Production and sales in Europe
1994 Production and sales in U.S.
3rd attempt in 1986
 Ford was European leader in 1984.
 Slipped to 5th position in 1992.

10.  Introduction of Mondeo In European Market.
 Introduction of Mystique-Contour.
 Sales were quite good from the beginning.
 470,000 units in first 15 months
 chosen as the European car of the year in 1994.

11.  Mondeo in Europe
 Mystique in U.S.
 90% of the elements are Similar.
 Seat belts and air bags had to be adapted to the local
markets.

12.  To optimize the scale of production.
 As One Menu is working for McDonalds.
 Economies of Scale.
 According to ford,25% of production cost could be saved.

13.  Ford’s Estimation: Cost of supplies reduced by $150 a
car.

14.  7 to 8 years to develop the car.
 Only 10% of the Mondeo was different from Contour
and Mercury Mystique.
 This 10% raised the cost level of the car to $6 billion.
 Also, delayed its introduction in North America.

15.  Earlier reports: $150 savings per car .
 In actual, Ford had to make $200 extra investment per car.
Table: no of unit sold by Mondeo and its European market share in medium
sized car segment.

16.  All firms that internationalize their operations at one time or
the other are confronted with conflicting demands.
 Coca-Cola is a global brand.
 However, the taste of the beverage varies regionally.
 Even McDonalds adapt its menu to local demand.

17.  References:
 http://www.ai-online.com/news/120500FordMondeo.htm
 http://www.anx.com/downloads/ford.pdf
 http://www.justauto.com/features_print.asp?art=305