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Car wars: Factors underlying the success or failure of new car programs

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  • Edward S. Hanawalt
  • William B. Rouse

Abstract

This paper explores the factors responsible for success or failure of an automobile through a case study analysis of 10 product successes and 10 product failures in the United States auto market over the last 50 years. Through the creation and analysis of twenty case studies we have generated a first listing of 14 factors driving success or failure. Seven experts assessed the extent to which these factors were associated with each automobile. Their assessments indicate that the product development system of new automobiles, particularly those that are highly successful, is often born from financial and corporate responses to market crisis. The target segment of a new entry in the automotive market and its development process as they are adapted to economic conditions in the marketplace, coupled with leadership, are central success factors. The role of these factors play in the success of automobiles is discussed in the context of several case studies. © 2009 Wiley Periodicals, Inc. Syst Eng 13

Suggested Citation

  • Edward S. Hanawalt & William B. Rouse, 2010. "Car wars: Factors underlying the success or failure of new car programs," Systems Engineering, John Wiley & Sons, vol. 13(4), pages 389-404, December.
    • Handle: RePEc:wly:syseng:v:13:y:2010:i:4:p:389-404
    DOI: 10.1002/sys.20158
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    References listed on IDEAS

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    1. Jacob Goldenberg & Donald R. Lehmann & David Mazursky, 2001. "The Idea Itself and the Circumstances of Its Emergence as Predictors of New Product Success," Management Science, INFORMS, vol. 47(1), pages 69-84, January.
    2. Tyson R. Browning & Ernst Fricke & Herbert Negele, 2006. "Key concepts in modeling product development processes," Systems Engineering, John Wiley & Sons, vol. 9(2), pages 104-128, June.
    3. Kim B. Clark & W. Bruce Chew & Takahiro Fujimoto, 1987. "Product Development in the World Auto Industry," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 18(3, Specia), pages 729-782.
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    Cited by:

    1. Nathan J. Slegers & Ronald T. Kadish & Gary E. Payton & John Thomas & Michael D. Griffin & Dan Dumbacher, 2012. "Learning from failure in systems engineering: A panel discussion," Systems Engineering, John Wiley & Sons, vol. 15(1), pages 74-82, March.
    2. Zhongyuan Yu & William B. Rouse & Nicoleta Serban, 2011. "A computational theory of enterprise transformation," Systems Engineering, John Wiley & Sons, vol. 14(4), pages 441-454, December.

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