Part 6/11:
The automaker sector provides a compelling analogy for understanding these shifts. Automakers have largely phased out small, low-margin vehicles in favor of larger, higher-margin luxury models. For example, brands like Ferrari and Porsche exemplify this approach, with Ferrari generating over $136,000 profit per car sold and Porsche about $37,000 per vehicle. Their strategy involves selling fewer units but earning significantly higher profits per unit.