Differences Ford and GM 1920

A detailed Summary of Differences Ford and GM 1920

The differences in strategy between Ford and General Motors in the period after 1920

In the 1920ies the automobile industry grew rapidly and became soon the biggest industry in the US. The more traditional transportation industries as ships, locomotives and railroads grew much less at the same time. At the end of the 1920ies the US produced a large percentage of the whole world output. In the industry two important players were Ford and General Motors. Ford was a first mover that invented the assembly line, which gave him the opportunity to enjoy large economies of scale. The other major player was General Motors which was Fords major competitor. The two different companies developed very different. In this paper 3 different strategic choices will be demonstrated as well as their impact of the success of the two companies.

Ford's initial success was due to its achievement of essential econ

Ford was concentrating its business mainly on production. They were making hardly any adaptations to the car they produced. In the mid 20ies when the shares of Ford dropped while those of General Motors have risen they replaced their traditional Model T with the Model A. This change, however, took a year to be implemented. General Motors on the other hand continuously improved their cars. They were the only auto manufacturer, which made extensive investments in research and development. Furthermore, they had many different models. All other car manufacturer expanded by moving to distant geographical markets. However, General Motors was diversifying its product line and captured economies of scope. Ford on the other hand expanded its product line by producing nonautomotive products as airplanes and tractors. This was not very successful as again Ford lacked the organizational capabilities. Ford

Some common words found in the essay are:
Model Model, Motors Fords, Ford Motors, Ford Furthermore, Motors Ford, ford motors, market share, , organizational capabilities, product line, economies scale, affected recession, outside suppliers, motors hand, assembly line,

Approximate Word count = 605
Approximate Pages = 2 (250 words per page double spaced)

Category: Miscellaneous

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Differences Ford and GM 1920

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