I don't understand how people don't get it. You don't choose what car you want, you choose the car AVAILABLE to you. If you only have expensive options, you'll buy a expensive option. If they don't provide you options, or the cheaper option suck compared to what you are paying and what you are getting, you'll buy the expensive option because it would be the better "decision"
You HAVE to buy a car(in america). Why the FUCK would car companies offer you something cheap and reliable if they simply don't have to? You don't have 30 different car companies, you have 3 car companies (in cahoots with one another) with 30 different flavours that makes you feel like you have a choice
This tactic is called escape to high grounds.
It is depicted as a fallacy in the book 'the innovators dilemma '.
This leaves you strategically open to grass roots development. Startups can with very low profit margin generate revenue and expertise. The moment the startup manages to increase profit margin and economy of scale you have to play catchup while you cannot sell your current portfolio and even steep discounts might not help.
If a large corporation cannot pivot fast enough they'll go bankrupt. This has happened in many places: solar in Germany, apparently in hard disks for consumers (from the book), digital cameras and Kodak (inventor of digital photography), xerox and computers. The list goes on.
The obvious car enemy is chinese EVs. The moment they make a breakthrough it will be hard to recover from with standard petrol engines. In Europe this can be seen, until now EVs from Germans where nowhere, but with BYD entering the market VW put the ID polo for 24999 in the portfolio. This shows how much a threat BYD is.
This simply cannot happen in the US, though. The big car monopoly has the government by the balls. A grassroots company could never get their car approved for road use.
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u/Susarn 7h ago
I don't understand how people don't get it. You don't choose what car you want, you choose the car AVAILABLE to you. If you only have expensive options, you'll buy a expensive option. If they don't provide you options, or the cheaper option suck compared to what you are paying and what you are getting, you'll buy the expensive option because it would be the better "decision"
You HAVE to buy a car(in america). Why the FUCK would car companies offer you something cheap and reliable if they simply don't have to? You don't have 30 different car companies, you have 3 car companies (in cahoots with one another) with 30 different flavours that makes you feel like you have a choice