2010
DOI: 10.1108/17557501011092475
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Alfred P. Sloan's 1921 repositioning strategy

Abstract: PurposeIn 1921, Alfred P. Sloan developed an extensive repositioning strategy that was instrumental to General Motors' success over the decades that followed. This paper aims to provide a review of the development and evolution of this strategy and how the later deviation from this strategy was responsible for the company's marketplace decline and eventual bankruptcy.Design/methodology/approachThe paper reviews the historical 1921 repositioning strategy developed by Sloan and the specific models and price leve… Show more

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Cited by 4 publications
(2 citation statements)
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“…What is of interest is the complexity in these reversals in thinking. While not without critics – for example, O’Toole (1995) argues Sloan’s focus on organisation structure was detrimental to personnel considerations – the divisional structure not only reversed Henry Ford’s valorisation of scale, but facilitated a decentralisation in decision-making as well as a ‘repositioning strategy’ over marketing (Powers & Steward, 2010). In all this, however, the common portrayal of Sloan as inventing decentralisation misleads.…”
Section: The Person: Creating the Modern Managermentioning
confidence: 99%
“…What is of interest is the complexity in these reversals in thinking. While not without critics – for example, O’Toole (1995) argues Sloan’s focus on organisation structure was detrimental to personnel considerations – the divisional structure not only reversed Henry Ford’s valorisation of scale, but facilitated a decentralisation in decision-making as well as a ‘repositioning strategy’ over marketing (Powers & Steward, 2010). In all this, however, the common portrayal of Sloan as inventing decentralisation misleads.…”
Section: The Person: Creating the Modern Managermentioning
confidence: 99%
“…for the great multitude", as an example of phase 2 mass marketing. It was Alfred Sloan's 1921 segmentation of the automobile market and re-positioning of General Motors' product line that laid bare the weakness of Ford's mass marketing strategy (Powers, 2010). However, some brands of cyclecars during the mid-1910s offered a line of models with price lining that anticipated Sloan's 1921 strategy at General Motors, and used model names that reflected targeted market segments through varying seating or quality levels, or the intended use for each model.…”
Section: Segmentation and Positioningmentioning
confidence: 99%