Definition
The Production Era was all about reducing manufacturing costs, and in turn, passing along the cost savings to customers in the form of lower prices. According to Michael Porter, reduced production costs can lead to reduced selling prices and thus appeal to the largest segment of customers
Main Points
- The production era is so named because the main priority of many companies was the reduction of the cost of production
- turbulent economic conditions associated with the late 1920s through the 1940s caused many companies to fail even though they had adopted this production-oriented philosophy of doing business