Ford Motors: Argument supporting the niche market strategy

Global niche strategy Ford management may have gone through some extensive discussion and argument to arrive at the point of acquisitions ("My assumption"). Mr. Nasser believed and argued that there was a shift in car demand; the world is shifting towards niche car markets. Ford motors needed to differentiates their cars to fascinate and capture the niche market. Differentiation occurs when the products of an organization meet the needs of some customers in the market …

…- By definition, the niche is small and may not be large enough to justify attention. - Cost focus may be difficult if economies of scale are important in an industry such as the car industry. - The niche is clearly specialist in nature and may disappear over time. Some small and medium-sized companies have found that this is the most useful strategic area to explore because none of the problems listed above are insurmountable.