Essay Sample on Business Strategy in Auto Motors Industry

Paper Type:  Essay
Pages:  4
Wordcount:  1011 Words
Date:  2022-12-01


Companies dealing with the production of motor vehicles in the world are the leading industries in the universe. Ford Fusion deals with the creation of cars in the United States under the leading company of general motors. Ford Fusion engaged itself with making different models of vehicles that suit customer satisfaction. The nature of Ford Fusion industries in imperfect competition market is as follows:

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Characteristic of Ford Fusion Industry

Presence of a considerable number of buyers and sellers in the sectors. The act implies that the Ford Fusion can be in apposition to control its price output policy in many instances. From the perspective of markets, the fact of any price- production policy of the industry will not get a retort from other industries that follow the independent price strategy. Free entry and exits of corporations is another nature of Ford Fusion. Entering and existing makes the industry to make super-normal profits (Pereira, 2017). With the kind of entry and exit, Ford Fusion has the advantage of an increase in supply that reduces the price of motors hence remaining as the existing industry with healthy profits. Similarly, if the existing firms are nourishing damages, some of the borderline industries will withdraw. It will reduce the amount due to which price would growth and the standing firms will be left only with reasonable profit.

Presence of product differentiation where buyers of the product differentiate the artefact with other competitors in motor industries. In the markets, the products of diverse vehicles industries are not altogether different but considerably different from others (Chuang & Zhao, 2019). Ford Fusion has real product differentiation as the design, material used to make the motors and the skills utilized are incredibly different from other vehicle industries. Ford Fusion has imaginary product differentiation as it advertises its products in all social media platforms and the trademark it uses has a unique sense of feeling.

Another feature of Fraud Fusion industry is how it deals with the selling cost. The industry tries to endorse its product by different type of outlays. Fraud Fusion advertises its motors as the essential component of the trade cost which disturbs ultimatum as well as the selling price of the product. The primary purpose of Fraud Fusion is to make profits, and it's essential for the industry to regulate the outflow accordingly (Eui-Chun, Kwon, & Pyo, 2018). The above helps the industry to succeed. The feature of less mobility reveals itself in the industry as the motors and factors of production are not perfectly mobile. More elastic demand reveals as another feature in Ford Fusion as the demand curve is more variable in many instances. For the industry to register a good sale of motors, the industry must reduce the price. Lack of perfect knowledge in Ford Fusion industry this makes the buyers go for the engines which are near their home where they have specific knowledge about the motors.

Strategies Applied in General Motors

General Motors are the largest automaker in the United States of America. General motors apply procedures to clear a path of success in the industry. Studying the completion outside the general engines helps them to understand the rival products and services offered by the competitors (Chuang & Zhao, 2019). The knowledge from the competitor will promote the general motors to rebrand the goods and services for them to stand out. The weakness got from the competitors helps general engines as an advantage in their industry. Conserving the cash from the industry no matter how the business is fairing perfectly in the market constitutes a strategy applied. The act of saving money helps general motors company to deal with rough patches that rise in some instances. The unforeseen circumstances that sometimes arises mostly are sorted by the money saved in the bank for several months.

The strategy of searching for new products and services all over the horizon helps General motors to improve the operation. With the help of the technology, General motor gets updates of new commodities in the market of auto motors (Eui-Chun, Kwon, & Pyo, 2018). Grabbing the modern products attracts many buyers as it suits their preference of getting brand new engines. General motors apply the strategy of not tackling the massive market at first. General motors avoid expanding its operation into a large market at the initial stage.

General motors listen to customer's feedback keenly. They put this in mind that their business will keep evolving when they look to the input to customer's feedback. Sometimes, one customer might not like the motors in the industry, but if it turns out that many customers don't want the commodity and requesting for another model of a vehicle, the industry listens and adapt to the changes required (Chuang & Zhao, 2019). General motors apply the strategy of accepting the changes and adopting the business operation accordingly. Being flexible helps General motors industry to maintain the customers, high profits and fewer business failures. The world keeps evolving. Hence changes are expected to pop out, and this helps the general motors to adopt the changes.


In conclusion, Ford Fusion is a monopoly company that deals with the production of vehicles in the United States of America. It operates under the General Motors. In Ford Fusion, there are many buyers and sellers, exit and entry of firms, prioritization of selling cost, lack of perfect knowledge and less mobility of goods and services. Strategies used by General motors to path their succession: studying the competition, conserving cash, researching on new products and services, listening to customer feedback and responding to the change.


Chuang, C. H., & Zhao, Y. (2019). Demand stimulation in finished-goods inventory management. International Journal of Production Economics, 208-220. Retrieved from

Eui-Chun, L., Kwon, S. O., & Pyo, H. J. (2018). Thermal and Electrical Characteristics of EV Traction Motor Considering AC Resistance of MSO Coil. IEEE . Retrieved from

Pereira, P. J. (2017). Valuation of Ford Motor Company and a study of its industry. Doctoral dissertation. Retrieved from

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