Success in fast cycle industries (e.g. consumer electronics) can depen
d both on rapid model replacement and on model longevity. Although Son
y was as fast as any of its chief competitors in getting new models to
market, an important explanation for the wide variety of models offer
ed by the firm is the greater longevity of its key models. This findin
g adds an important insight to the conventional literature on time-bas
ed competition which emphasizes rapid innovation exclusively. Sony's s
pecial understanding of the US market enabled it to respond more effec
tively to life style differences by locating industrial designers in i
ts key markets. Sony's strong design capability and effective division
of labor (engineers lead generational and incremental projects, indus
trial designers and market personnel lead topological projects) allow
for parallel model development. Investment in manufacturing flexibilit
y amortized over multiple models within the product family make the ra
pid model changeover possible.