* Mass Production and the Assembly Line: Ford's genius lay in perfecting the moving assembly line. This dramatically reduced the time and cost of manufacturing each car, making them significantly cheaper to produce. This wasn't just about lowering costs; it was about increasing *efficiency* to a scale never before seen.
* Increased Demand: Ford understood that a lower price point would unlock a vastly larger market. Before the Model T, cars were luxury items for the wealthy. Ford envisioned a car for the average American worker, creating a massive potential customer base.
* Profit through Volume: While selling individual cars at a lower profit margin, the sheer volume of cars sold using this model generated enormous profits. This is the core principle of economies of scale.
* Creating a Market for his Own Products: By making cars affordable, Ford wasn't just selling a product; he was creating a market for his own product and services, including parts and gasoline. He even owned some of the resources needed to produce these cars and fuel.
* Social Impact (a secondary but important factor): While profit was paramount, Ford also saw his cars as a means of improving American society. He believed that car ownership would empower individuals, increasing mobility and access to opportunities. This wasn't the *primary* driver but it was a belief that shaped his approach.
In short, Ford's affordability wasn't a charitable act. It was a brilliant business strategy that intertwined innovation in manufacturing, a keen understanding of market dynamics, and a vision of a mass-market consumer economy.
