Increasing Global Competition and Labor Productivity: Lessons From the US Automotive Industry

Topics:
Automotive,
Strategic Management Tools
Tags:
Global Competition,
Strategy,
Sector,
Performance Management,
McKinsey & Co.,
Manufacturing,
Management,
Leadership,
Industry,
Human Resources,
...
Source:
McKinsey & Company

Vendor Registration: required

Overview: Studies of productivity by McKinsey Global Institute (MGI) and others have shown that when new, more productive players enter a sector previously sheltered from global competition, the sector's overall level of productivity rises. Less clear, however, is what happens at a company level to link cause and effect. Taking U.S. automotive manufacturing between 1987 and 2002 as representative of a sector facing increased competitive intensity, this paper examines how the "Big Three" U.S. automakers responded to more productive Japanese entrants over the period. All three adopted innovations in processes and products to catch up with the new competitors' performance, but at different rates and in different ways.

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Format: PDF | Size: 1,608KB | Date: Nov 2005 | Pages: 147

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