Metaphors: More General Motors

William Durant and General Motors
Tommy Thomason’s Pew Report is good news and bad news for community journalism

William Durant didn’t like automobiles.

Durant, who was in the carriage business in the 1890s, thought cars were smelly and noisy, not to mention downright dangerous.  But he realized that automobiles, as distasteful as he thought them to be, were the wave of the future.  So he left his still-successful carriage company, one of the world’s largest, to join the new Buick company.

Ultimately, Durant went on to found General Motors.

The point?  Durant’s times were a lot like ours.  He was living at the edge of a paradigm shift-a whole new mode of transportation.  Cars did not take over from carriages immediately, but within a decade, it was obvious that they would soon rule the road.

We live in a similar age, but the paradigm that’s shifting is communication, not transportation.  One advantage that Durant had over today’s current industry-in-crisis — newspapers — is that the industrial landscape of his day was shifting more slowly.  Metro newspapers have gone from boom to bust in a decade (though many in the know have been pointing to the danger signs for metros even before the advent of the Internet).

via Steve Buttry

Metaphors: General Motors

An industrial giant in bankruptcy
Jack Shafer’s “How Condé Nast Is Like General Motors,” in Slate

Although the privately held Condé Nast isn’t as financially distressed as the bankrupt General Motors, and although the magazine business couldn’t be more unlike the car business, the two distraught companies share woes. Both succeeded in segmenting the market with semi-independent divisions that were once unique and distinct but that have since faded into one, much to the confusion of consumers. Both have dramatically dumped once-valuable properties. Both have allowed divisions to operate like independent fiefdoms at the expense of the company’s greater financial good. Both have established cultures of privilege for top employees, and both appear to have woken up to their problems too late.