Perfect example: Harley-Davidson.
The Japanese invasion had effectively crushed the British motorcycle industry and was about to do the same for H-D. Reagan stepped in and placed a hefty tarriff on Japanese bikes over 700cc, H-D's main competition. Rather than using this as a chance to innovate and try to build a product that competes with the Japanese product in terms of reliability, quality and technology, H-D played the "heritage" card. Now, twenty years later, they're basically building the same crap they were building then. As a bike mechanic during these years, I could only watch them squander this opportunity and shake my head.
Allow me to offer an expansion on this point.
In the past 40 years, the trucking industry lost White, Freightliner was purchased by Daimler-Benz, and Volvo entered the marketplace by buying what was left of the GMC-White marque, and building Class 8 rigs.
Rather than whining about the new challenges they faced, Paccar, the builders of Kenworth and Peterbilt trucks, upgraded everything. With the more aerodynamic rigs from Freightliner and Volvo, they came out with the T-2000 (Kenworth), an improved version of the T-600 "Anteater," the T-660, and the new 387 (Peterbilt.) Frankly, they're much better trucks than the Volvo or the Freightliner, and far more reliable. Trust me on that one, especially considering the damned Freightliner Columbia I'm stuck driving right now is falling apart, while a Pete or KW of the same year is still going strong. (I just had the steering box replaced on this POS, and it's already failing after two months.)
Consider, also, that Paccar has to compete with Western Star and International, plus Mack, which is reentering the competition with several new designs. Sterling has been building daycabs, but it's looking like they'll be moving into OTR/Linehaul equipment fairly soon, as will several Japanese manufacturers looking to get a toehold in the profitable American market. I'm an unabashed fan of Paccar's products, simply because I've driven them, and I've driven the competition. I know what works, and I prefer Kenworths. By allowing competitors into the American market, we've got better trucks. Frankly, I'd like to see just what kind of wonders they have in Australia, where you have Road Trains with anywhere from two to four 48'-53' trailers rolling across the outback, because in a location like that, you'd damned well better have a solid piece of equipment doing the work.
And you won't get that if you stifle the competition because it's inconvenient.
