Wednesday, November 30, 2005

Old Problem Example

In RealClearPolitics - Commentary - How GM Failed to Meet the Challenge Robert Samuelson gives a perfect example of the old problem.

"In 1921, Ford had 60 percent of U.S. car sales. GM overtook Ford because ``the old master (Henry Ford) had failed to master change,'' Sloan wrote. Ford stuck too long with the Model T, conceived as cheap transportation for everyman. But the advent of used car sales satisfied consumers wanting ``basic transportation,'' while new-car buyers demanded more comfort and performance. GM offered a full line of cars (Chevrolets, Buicks and Cadillacs) at different prices."

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