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The established car manufacturers are too highly optimized for their specific suppliers. Over many decades an internal culture appears within these companies th
by edejong 7y ago
The established car manufacturers are too highly optimized for their specific suppliers. Over many decades an internal culture appears within these companies that immunizes against heavy risks. This is done by (unconsciously) selecting for certain personality traits in upper management and by forming certain specific ties to the first and secondary surroundings of the company.
In short: companies petrify around local optima given time.