Ford Motor Company has been a leader in the automotive industry for over a century, but in recent years, they have made a strategic shift in their business approach that is boosting sales globally. In this article, we will explore how Ford’s new approach is paying off and what it means for the future of the company.
One of the key areas where Ford has made changes is in their product line. They have shifted their focus from traditional car models to trucks and SUVs, which have higher profit margins. This change has allowed Ford to increase its average transaction price, resulting in higher revenues per vehicle sold.
Another strategy that Ford has implemented is a renewed emphasis on quality and innovation. This has allowed Ford to differentiate themselves from competitors and attract customers who are looking for the latest technology and safety features. For example, Ford’s SYNC 3 technology allows drivers to control many aspects of their vehicle using voice commands, which has been a hit with customers.
A more recent strategy that has helped Ford’s sales is their focus on electric vehicles. Ford has recently announced plans to invest $11.5 billion into electric vehicle production by 2022. This is a smart move, as electric vehicles are predicted to comprise 10% of new vehicle sales in the United States by 2025.
In addition to their new electric vehicle focus, Ford has also expanded into new markets. In 2019, Ford announced that they would be bringing a line of SUVs to China. China is the world’s largest automotive market, and Ford believes that this move will help them gain market share in the country.
Overall, Ford’s strategic shift in business approach has allowed them to increase sales globally. By focusing on higher profit margin products, quality and innovation, and expanding into new markets, Ford has set itself up for continued success in the future. As the automotive industry continues to evolve, it will be interesting to see how Ford adapts and innovates to stay ahead of the curve.
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