Abstract

Abstract This chapter takes the automobile industry as an empirical setting for clarification of the concept of modularity in product architecture. Three arenas of modularity: Modularity in Design, Modularity in Production, and Modularity in Use are discussed as presenting alternative criteria for making boundary choices in complex products. The chapter moves on to understanding strategic drivers for pushing the product architecture towards modularity. It then considers the implications of these different paths for industry dynamics (in particular the power balance between customer and supplier companies) and supply chain management.

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