This case study considers Ford’s strategy in the early years of the 20th century and the development of the Model T which revolutionised the motor industry. This strategy was so successful—as a traditional demand curve would predict—because lowering the price of motor cars resulted in an increase in demand. This gave Ford two-thirds of the market share by 1916. However, through product differentiation and the development of a second-hand car market, General Motors outperformed Ford to gain market leadership.
Baker, M.J. (2018, May 1). Ford: how the model T revolutionised an industry [Video file]. In The Business & Management Collection, Henry Stewart Talks. Retrieved May 21, 2018, from https://hstalks.com/bm/3728/.