Ford Motor Company today is taking market share from rivals and innovating new products with features consumers find desirable. But in the past, Ford famously lost market share to rivals when founder Henry Ford refused to engage in product differentiation, preferring instead the efficiency of mass production of a single product, saying that customers could get a Model T in any color, as long as it was black. What are the advantages and disadvantages of product differentiation? Can the market itself work out the right amount of product differentiation over time?