Page 169 - (DK) The Business Book

WORKING WITH A VISION 167

See also: Stand out in the market 28–31 ■ Gaining an edge 32–39 ■
Balancing long- versus short-termism 190–91 ■ The value chain 216–17

Consumers do not When a company
innovate—they are happy introduces a totally new
with a better version of concept, it creates a new
an existing product. market and is “first” in
consumers’ minds.

Henry Ford

Henry Ford was born in
Michigan, US, in 1863. He was
Even if competition The company gains always fascinated by
arrives, consumers the competitive machines, and as a child built
continue to associate advantage of being rudimentary steam engines.
the first company with first to market. He left school at 15 to work on
the concept.
his father’s farm, but in 1879
he moved to Detroit to work as
an apprentice at the Michigan
Car Company, which made
railroad cars. He moved home
for a while, and did several
engineering jobs, before
A company that leads the way returning to Detroit to work as
can dominate the market.
an engineer for the Edison
Illuminating Company.
At the same time, Ford
began to make a gasoline-
driven car, Thin Lizzie, in his
continued to dominate the market. using a moving assembly line to
garden shed. He persuaded a
The knowledge he had gained reduce production costs. By 1918,
group of businessmen to back
enabled him to improve his water- Ford Motor Company was the clear
him, but a lack of experience
powered spinning frame. leader in the US automobile market led to business failure—twice.
—the Model T made up half of all His third business—the Ford
Moving ahead cars in the US. Ford continued to Motor Company—was formed
Henry Ford did not invent the lead the market until the mid-1930s. in 1903. Its first car, the Model
automobile, but he did develop the Moving ahead of others in a A, was followed by several
first affordable car for middle-class market involves risk. By taking the other models until the
Americans at the beginning of the initiative—with an innovative company struck gold with the
20th century. Most people had never product, new technology, lower Model T: “a motorcar for the
aspired to owning a car because prices, better distribution, multitude.” By 1925 Ford was
producing 10,000 cars every 24
they were seen as a luxury item for promotional offers, or forceful
hours, producing 60 percent of
the wealthy, and, as Ford said at advertising campaigns—a company
the US’s total output of cars.
the time, most people would have creates an opportunity to seize the
His last great innovation—at
been happier with “a faster horse.” leadership position. Organizations
the age of 69—was the V8
Ford, like Arkwright, succeeded may seek such an advantage
engine. He died in 1947.
because of a technical edge. His because their strategy and
idea was that of mass production, approach is always to lead into ❯❯