On the NY Stock Exchange, the Ford Motor Company stock price has almost doubled during the past year, and it is certainly a bullish sign not only for the auto company itself but also for the whole industry. However, it can be said that the stock market is not the only interest that the company has as of the moment. The auto maker is definitely tapping a cloud-based prediction market scheme in order to have a good grip on any new ideas that it would pursue.
Simulated Stock Market
More or less, the company has a simulated stock market, which is utilized by 1,300 Ford workers and employees not only in the US, but also in the European continent. It encourages all members to give important comments on different issues and topics via stock market type of trading. The company is utilizing a cloud-based prediction platform scheme by Inkling, which likewise provide its services to clients such as General Mills, Johnson and Johnson and CNN.
Ford Company states that it uses prediction market system as an alternative to traditional client research, which is known to be more expensive and even time-consuming. Participants traded on items like prospective new auto features and also topics like electrification, sales volume, and also economic issues on commodity and gas prices. The system posts queries for Ford traders by asking them to choose any answer and then the system works on handicapping the chances for that choice to be rated as the highest.
Possible Effect on Ford Motor Company Stock Price
To cite an example, if Ford traders believed that a new kind of auto headlight possesses 70 percent chance of having the highest rating percentage, the Ford Motor Company stock price would then be up by $70. What’s so great about the system, according to Ford, is that it is based online, which means that the valued opinions are immediately available, making it possible to leverage the wisdom and thinking of the base clients.
Ford now claims that the prediction system is working and paying off. In fact, the company already abandoned an early started development of an auto vacuum after discovering the tepid interest in it by the market. Likewise, serious plan for a bike carrier was dropped after low trading in the market and possible dip on the Ford Motor Company stock price.
Important Decisions Made from Prediction Market Scheme
Ford is grateful for having arrived at such important decisions in a consistent manner with the use of such prediction market scheme, thereby saving a great amount of time as well as development costs. With such marketing program, the company is now able to train its focus on other important features that are sure to trade much higher.
In a revealing survey, Ford said that more than 90 percent of its workers who participate in the prediction markets of the company admit that they have learned important and valuable trading lessons. Now Ford is taking advantage of such knowledge and experiences by their employees. They now determine that the current work force that they have are data driven, which is certainly helpful to the overall company development cause of Ford.
