Ford Motor Company Elasticity/Consumer Behavior and Market Competitiveness

2368 Words Jun 25th, 2011 10 Pages
Consumer behavior or elasticity is a consumer’s response to a change in price of a good or service. Consumer behavior allows a consumer to rank and prioritize purchases according to their elasticity of certain goods and their dependence on others (Managerial Economics, 2010). When consumers recognize a change in price and respond strongly, they can adjust their consumption and therefore have their demand for that item become elastic. Automobiles tend to have elasticity in them in regards to make, model, and features that the consumer is willing to pay for. Basic models and good fuel mileage become important as income goes down and elasticity for automobiles goes up. Merriam-Webster defines competition in business as "the effort of two or …show more content…
Ford has also created an electric car which is capable of going 80-100 miles on a full charge.
In 2009, in a strategic marketing move, Ford realigned their company and introduced their ONE Ford initiative. This plan enhanced their 2007 move of creating “a single global product development organization to maximize economies of scale and share best practices and ideas” (2009 Annual Report). The concept of ONE Ford is One Team, One Plan, One Goal. “ONE Team emphasizes the importance of working together as one team…. ONE PLAN: The company’s four-point plan consists of: balancing our cost structure with our revenue and market share; accelerating development of new vehicles that customers want and value; financing our plan and rebuilding our balance sheet; and working together to leverage our resources around the world. ONE GOAL: The goal of ONE Ford is to create an exciting and viable company with profitable growth for all” (Ford 2009 Annual Report). Ford is truly putting customer’s expectation and demand at the forefront of their decision making processes. Ford is capitalizing on their market competitiveness and creating a loyal customer base that will buy their brand for years to come.
Ford started 2010 with a 24% increase in sales. New products are the drive behind Ford’s brand favorability (Ford Motor Company 2011). The market competitiveness was evident when Ford swept the North

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