Henry Fords factory was so efficient that by 1926 a new model-T cost only $310, one-third the price of the original 1908 model.
Discriminating services may cause misunderstanding and unpleasant result. The best example is Toshiba, one of the largest Japanese companies. In 2000, the Company announced that among notebook computers it produced, one model had serious defect. Users in North America could choose either replacements with an upgraded model or full refund. However, no such offer for users in China. Chinese users were outrage at the companys discrimination and refused to use any of Toshibas notebook computers. What the company lost is not only the temporary revenue but also the consumers confidence, which contribute to the long-term success of the company.
Compared with government officers, private corporation managers must pay more attention to efficiency and effectiveness of their decisions. Normally, maximizing profitability is not the primary goal of government owned enterprises and governmental planning, so that many unrealistic decisions may be resulted. It is the hidden reason that many government owned enterprises become profitable after the privatisations.
Traditionally, the first firm to commercialise a new technology has benefited from unique opportunity to shape product definitions, forcing followers to adapt to a standard or invest in an unproven alternative. Today, however, the largest payoffs may go to companies that lead in developing integrated approaches for successful mass production and distribution. For example, SEGA, producer of Saturn, was the first company to develop home video game machine commercially, but Sony Entertainment INC., producer of Play Station, proved to be more successful at forming strategic alliance with other producers and distributors to manufacture and market its hardware and software. Because consumers had more choices on Play Stations games, they seldom bought SEGA Saturn. By the end of the 1990s, Play Station dominated the home video game market while SEGA Saturn was no longer in production.
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