Are there market limits to modularisation?

David Morris and Tom Donnelly

International Journal of Automotive Technology and Management, 2006, vol. 6, issue 3, 262-275

Abstract: Modularisation is the predominant approach used in the modern automotive industry to widen the variety of products available in the market place at affordable prices. Modularisation has taken place in the context of increased global competition in the industry, a trend towards greater outsourcing of both module manufacture and development and greater volatility in consumer demand at the model level. Modularisation is both a strategy and a process. Like all shifts in the organisation of production in the industry there are potential limits to what can be achieved through modularisation. This paper explores some the extent to which the market itself may impose limitations on what can be achieved via modularisation.

Keywords: automotive products; automobile industry; modularisation; economies of scale; knowledge management; organisational structure; product architecture; economies of scope; globalisation; outsourcing; modular products. (search for similar items in EconPapers)
Date: 2006
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Citations: View citations in EconPapers (11)

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