“Given the ever-increasing barriers to entry in what Peter Drucker famously called the “industry of industries,” it’s a wonder that any automotive startups defy the long arc of consolidation by establishing themselves as viable competitors. And it’s even more notable when these newcomers present a model that just might challenge the incumbents to the core. Lean thinker Mark Donovan recently asked LEI founder Jim Womack whether the path taken by Tesla founder Elon Musk points to a new machine that can change the world. ”
Sourced from The Lean Post
Michel Baudin‘s comments:
Are the barriers to entry into the auto industry “ever-increasing,” as asserted in the 2010 HBR article linked to above, or did this article get it wrong? Could it be that the barriers are actually falling, with advances in electronics and information technology leveling the field between incumbents and new entrants?