The Ford Model A Case Study: Total Cost Minimization?

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Total Cost Minimization On May 25, 1927, The Ford model T ended production. Its successor the Ford Model A was then conceptualized and brought into production. As soon as it was released into the market a lot of problems arose which led to its failure. From production issues at the assembly plant, to the increase of stronger competition and the start of World War Two, The Model A was doomed from the start and it would not be long until Henry Ford himself would notice it.
When Henry Ford first introduced the assembly line method in 1910 for the Ford Model T; it increased productivity rapidly. All aspects of the car were being constructed using this method. Instead of people constantly moving to add parts to the car, Henry Ford decided it would
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The main reason why General Motors was able to become more successful then Ford was variety. During the production time of the Ford Model T, the one issue it has was customization. The only color available for the Model T was black and lack of personalization options drove customers away. People wanted to stand out and that’s when General Motor decided to offer more color options and personalization to all their models. Although the cars General Motors made the cost more, people were willing to pay a few extra hundred dollars in order to be unique on the road. By 1926 Ford lost 25% of their market share to General Motors. So when it came to the Model A, Henry Ford wanted to make sure this would not happen. He fixed the issue by adding more colors and personalization options for the car. Unfortunately for Ford General Motors and many other car companies were already ahead of them. While Ford as struggling to push out the first few examples of the Ford Model A out of the production line, General Motors were able to release cars that were more powerful and more advanced than the Model A. On top of that General Motors introduced the annual model change which attracted, even more, customers. Another company that attracted customers during the years of the Model A was Plymouth. This American car manufacturer that was first introduced in 1928 produced vehicles which offered much more power than the Model A (Modern Marvels). For example, the Plymouth PC was powered with a flat line V6 engine. This impressive engine lured customers from the Model A into the Plymouth (Plymouth of 1933). Ford 's obsession with cost minimization was successful in the early years of the Model T, but as other companies were quickly able to offer vehicles that were more unique and powerful they began to learn that this strategy was facing a lot of issues. When they decided to implement a similar production

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