The GM Decline Predicted in 1990

November 8, 2010 |  by  |  Focus Groups
  • SumoMe

I just came across this from an article titled “Strategic Listening” that I wrote in 1990. I thought it was interesting in the aftermath of the bankruptcy of GM, its bailout, and its immanent IPO.

General Motors

I once wrote to General Motors in the early 70’s, when they were totally dominating the market, and suggested a dealer telephone focus group program. They sent me a legalistic letter explaining that they get ideas from all over, and that they could not accept unsolicited “proposals” because doing so would raise questions and lawsuits about who originated the ideas. In effect, they were declaring that they were closed to new ideas “Not Invented Here.” Lee Iococca is another example. He declared that he didn’t believe in marketing research. Neither Chrysler nor General Motors has been doing too well lately. Ford, on the other hand, is doing very well. They learned from the failure of the Edsel, and many other hard knocks, as well as the success of the Taurus. They seem to be listening to everyone. In fact, the way they built the Taurus, which is well documented in the business literature, is an extraordinary lesson in external and internal listening. Ford is becoming identified with quality (Quality is Job 1), and delivering quality. It is also winning. Bravo!

Moral: If a good idea falls in the forest, make sure you are set up to hear it.

You are here:


Leave a Reply

Comment moderation is enabled, no need to resubmit any comments posted.

Spam protection by WP Captcha-Free