Henry Ford's Business STRATEGY made FORD a billion dollar company : Business Case study

Video Introduction:

Henry is Ford is one of the greatest businessmen of the 20th Century and the most Astonishing thing about him is that way back in 1900s in spite of having just 28,000 dollars investment he turned the Ford motor company into billion-dollar within just 22 years. 
And not just that, while every company was paying its workers 2.5 dollars a day, Henry Ford paid his workers 5 dollars. But, in spite of double pay, while other car companies sold their cars at 700 dollars, The Ford Model T was being sold just 360 dollars! Henry ford pay his workers 100% and yet he kept the costs of his car at 50% lesser than the competition.
And this Golden equation turned Ford motors into such a dominating force in the automobile industry, even today, the Ford model t is one of the highest sold vehicles in history with a sale of 16.5 million units!
The question is how did Henry ford manage to achieve something so incredible, what were his business strategies, and as future business leaders how can we apply these lessons to our company?
This is a story that dates back to 1903 America and during that time, Cars were extremely costly so only Rich people could afford them. It was almost like owning an Ashton Martin in today's world. 
This was a time when 500 dollars a year was considered to be a handsome income! And at the same time, the base price cost of a car was 850 Dollars! In fact, when Henry Ford introduced the Model T even that started with a base price of $825 and with such a small market, Ford had a lot of competition with Chalmer Cadillac and 10 other companies fighting to capture the market.
This is when Henry Ford realized that if he keeps selling cars to the rich, with the existing competition he will never be able to scale up! So he decided to sell cars to the common man and tap into the lower segments of the market! But the biggest challenge here was that it was practically impossible to generate profit if the cars were sold below the price point of $600 dollars! 
and yet Henry ford was such a Genius that from 1910 onwards, suddenly, Year on year, the price of a Ford car started to drop drastically! and they started with $950 and within 3 years, they were able to generate massive profits even at $600 and not just that by 1917 the price of the Model T had fallen by 60% to just $360 dollars and the sales skyrocketed by 4100% making Ford, not just the biggest but also the most automobile manufacturer in the world! This video elaborates on the strategies that made this possible.

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Study Materials
Wealth of the Nations book

Fredrick Taylor's book on Scientific Management

The Same Old Principles in the New Manufacturing

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[ThinkSchool]

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[QuickRounders]

Henry Ford was an American industrialist, business magnate, and founder of the Ford Motor Company, and chief developer of the assembly line technique of mass production. Great to see his billion $ process. Thanks to think school. for making the video

[yash.]

Normal businessman : follows the system
Great businessman : makes their own system and integrates the positives of others
Love your work 👍👍

[ryangill]

What Ganesh has been doing is really admirable. His entire aura and narration attracts me to watch each video. Each time the video keeps up to the expectations. Keep the good work up!

[LifeSkillsDelivered]

Hii I would like to add a point. Henry Ford in late 1921 proposed an idea about a currency that was backed by energy. He said this idea could even stop wars from happening. 100 years later we are using Bitcoin which serves the same purpose :). He was even referred to as Crazy Henry, What else could normal people call a man who has these kinds of wild thoughts.
Also, It is said that Alfred p solace who was the chairman of general motors introduced Dynamic Obselesnce to bring more sales to the company.it worth noting that he was intimidated by the growth in sales of model T. This dynamic obsolesce was later evolved into Planned obsolesce.
The video is nice as usual.😍😍😍😍😍

[triples]

I had Adam Smith's, Fredrick Taylor theory in one of the management subjects during Engineering which I didn't understand a bit, hope I had teacher like you during my engineering 😅

[satyasiddhamishra]

It's all about innovation. Ideas like this have changed our lives. Innovation and free thinking should be encouraged. Our country is at juncture where similar ideas are very much needed.

[dhyeyy]

I am not a business student but by these videos, I have learnt many key concepts for business and management <3

[rahulparida]

I wish Henry Ford is still alive. Then there would have been a new innovation in automobile industry and a tremendous growth in Ford Motors.🚗

[TanishqMishra_IIT-R]

Long story short: The efficiency and the dedication of team is the key

[incredibleworld]

The way you(ganesh brother) express the content is absolutely amazing.

[lalithraaj]

I hit the like button immediately after opening any new video from ThinkSchool because he and his team really deserve it for the quality content they bring in everytime.

[sakshamrivastava]

henry Ford's idea was just like the MacDonald means one worker fries the bun, one person apply potatoes, one person garnish it and one person assemble all the burger.

[HOID]

An amazing thing happened today:
Your this video was used as a reference in my college today to teach us Principles of Management.. Amazing I was happy because I had already seen the video .. 👍🏻 Keep up the great work...

[jzkakkd]

goated video, helped me for an exam, rly thanks man, you're a savior

[shauryayadav]

Ganesh you had covered many principles of management in which i faced difficulty in my class 12
Hats of you brother, very well explained.

[RajKumar-eitc]

Man you are just.. I've no words for you. I'm doing my MBA in Marketing and watching your videos is not only making me learn but also making me explore my area of domain. Thank you so much for all the affords you are putting. Keep posting such great videos. #Think #School

[Seadre]

Man this channel is underrated it should hit 3 million or more

[Skriptkartofficial]

Doesn't matter where we study, if the teachers teach like you. keep up the good lots of love and Respect.

[kartik.]

One more thing which helped him to make ford world leading car company was that... He reduced the working time to 8 hours from 9 hours ... so that there would be 3 shifts / day....

Which helped him to produce more cars...