In very rough terms, one could attribute the success of American manufacturing to cffective competition on the cost dimension (i.e., via economies of scale due to mass production), the success of German manufacturing to effective competition on the quality dimension (i.e., via a reputation for superior product design and conformance with performance specifications), and the success of Japanese manufacturing to effective competition on the time dimension (i.e., via short manufacturing cycle times and rapid introduction of new products). Of course, cach newly ascendant manufacturing power had to compete on the dimensions of its predecessors as well, so Germany had to be cost-competitive and Japan used cost and quality in addition to time. Thinking in terms of this simple model, that represents global competition as a succession of new competitive dimensions, give some suggestions for what might be the next important dimension of competition.

Step by step solution

01

Understand the current competitive dimensions

Analyze the competitive dimensions of American, German, and Japanese manufacturing. American manufacturing has been successful due to cost-effective competition, German manufacturing has been successful because of its focus on quality, and Japanese manufacturing has excelled because of its emphasis on short manufacturing times and quick introduction of new products.

02

Identify the trends of the past dimensions

Each newly ascendant manufacturing power had to compete on the dimensions of its predecessors. Germany had to be cost-competitive while Japan had to excel in cost and quality in addition to time.

03

Brainstorm potential new dimensions

Keeping in mind the previous trends, brainstorm potential new dimensions that might emerge as important in global competition for future manufacturing.

04

Suggestion 1: Sustainability

One possibility for a new dimension of competition could be sustainability. Manufacturers could focus on reducing their environmental impact by utilizing eco-friendly materials and processes, minimizing waste, and reducing energy consumption. This would also cater to an increasingly environmentally-conscious consumer base.

05

Suggestion 2: Customization

Another dimension of competition could be customization. As technology advances and consumer preferences become more diverse, manufacturers may need to offer a higher degree of personalization in their products to stay competitive. This could involve allowing consumers to choose specific features, materials, or designs to meet their unique needs and tastes.

06

Suggestion 3: Integration of technology

The integration of technology into manufacturing processes and the final products could be another important dimension of competition. Manufacturers that can seamlessly incorporate cutting-edge technology (such as AI, IoT, and robotics) into their operations and create products that are compatible with or enhanced by these technologies will have an edge in the market.

07

Suggestion 4: Supply chain resilience

In the wake of global uncertainties (such as pandemics, geopolitical tensions, and climate change), supply chain resilience could become a crucial competitive dimension. Manufacturers that can maintain stable and agile supply chains, adapt quickly to disruptions, and source materials locally or from diverse suppliers will be better positioned for success. Now that you have some suggestions for the next important dimension of competition, you may discuss and explore further implications of these dimensions for the future of manufacturing.

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