Ford vs. GM: The Evolution of Mass Production (A)

Ford vs. GM: The Evolution of Mass Production (A) Below are the available bulk discount rates for each individual item when you purchase a certain amount Register as a Premium EDucator at hbsp.harvard.edu, plan a course, and save your students up to 50% with your academic discount. PublicATIon Date:August 15, 2013 Industry:Consulting Industry:Automotive Industry:Manufacturing Industry: […]

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Ford vs. GM: The Evoluton of Mass Producton (A)

Below are the avalable bulk dscount rates for each ndvdual tem when you a certan amount

Regster as a Premum Educator at hbsp.harvard.edu, plan a course, and save your students up to 50% wth your academc dscount.

Publcaton Date:
August 15,

ndustry:
Consultng

ndustry:
Automotve

ndustry:
Manufacturng

ndustry:

Source:
Harvard Busness School

Ths case explores the very dfferent paths taken by the Ford Motor Company and the General Motors Corporaton n the frst three decades of the twenteth . Henry Ford’s Model T was a car for the masses. After consderable expermentaton, Ford Motor perfected a mass producton system that converted the vast majorty of jobs n the factory nto routne tasks. t ponee the movng assembly lne, and t pursued processes that became ncreasngly ntegrated and mechanzed. Whle t’s sngle-mnded focus on cost mnmzaton led to spectacular market success for a tme, the resultng nflexblty made t dffcult for the company to respond to market changes. Ths cred an opportunty for General Motors and others, partcularly n the face of technologcal shfts to closed-body desgns and metal stampng technology, as well as the marketng-led dea of the annual model change. The case offers a settng to examne several frameworks: exploraton versus explotaton, the emergence of domnant desgns, and vertcal ntegraton versus transacton costs and suppler hold-up. The A case closes wth the queston of what GM should do about suppler er Body. The B case summarzes the shft to all-steel body stampng and engne manufacturng as the core technologes for automoble producton, and how these changes made t dffcult for Ford to mantan ts frst-mover advantage.

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Ford vs. GM: The Evoluton of Mass Producton (A)


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