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Ford Finance Finance Case

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Excerpt from Term Paper:

Ford Finance Finance Case

download word file, 4 pages (28KB)

Document Type: Term Paper
General Topic: Accounting - Corporate Finance
Citation Style: APA
School Level: College Sophomore (2nd year)
Sources: 0
Views: 72
Words: 1235
Pages: 4
Paper #: 22966337

...... There are also some very key strategic advantages to choosing this option. Aside from the financial benefits, Ford has devoted significant amounts of revenue to their current line of cars in capturing brand equity. Creating a more efficient powertrain will seamlessly increase this brand equity without having to spend millions of marketing dollars to re-brand or recapture equity. Such a option also shows that Ford is continually making improvements to their current vehicles, and engenders greater trust from customers. Moreover, an efficient powertrain will impact several different product lines at once, which means that the risk of implosion is diversified significantly more than if Ford were to put all of their marbles into one product line. With the introduction of a new product line, Ford will have to convince consumers of the viability of this option through carefully structured marketing. Since Ford does not currently have the reputation of being a fuel efficient provider, it will be extremely hard to make this product extremely successful on the domestic market. There are significant room for both error and risk involved in such a step. Ford can also instead chose to improve an existing vehicle to compete with the likes of

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