{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Ford’s Wholly Owned Subsidiary in Russia.docx

Ford’s Wholly Owned Subsidiary in Russia.docx - Fords...

Info icon This preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
“Ford’s Wholly Owned Subsidiary in Russia” 4-30-2017 According to the Case Study Ford & General Motors in Russia “Ford was motivated in part by a desire to gain a foothold in the Russian car market. Although car ownership levels in Russia are very low by international standards—120 cars per 1,000 people compared to 580 per 1,000 in Western Europe— car sales have been rising by 7 to 8 percent a year. In 2002, about 1.5 million new and used cars were bought in Russia, about 1 million of which were Russian cars. New Russian models sell for $5,000 to $8,000. Ford intends to sell its locally produced Ford Focus for about $10,900, a price premium that Ford believes is justified given the poor reputation of Russian cars.” There are very few domestic automotive component manufacturers that can compete with western companies. Local firms suffer with ineffective management, outdated technologies and equipment and lack of financing for modernization. Their only competitive advantages are low prices and barter agreements with customers. The main reason they did not postpone investment until the market got bigger is because of the First mover advantage: as seen from above data there is a huge opportunity in the Russian market so whosoever enters first into the market have market share and can have advantage over the late entrants. After Political and economic crisis Russia is now consider as a stable market for
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern