That changed very suddenly. And the way it changed, at first, was that these competitors found market niches that were being ignored or under-serviced. In the case of the auto industry the niche was fuel-efficient cars. The principle is more general though. Identifying and exploiting niche market opportunities broadens the scope of products available to consumers.
Economies of scope differ radically from the older economies of scale.
In the latter, the more identical widgets you could make at the lowest possible unit cost, the more profitable your company. In the last 30 years there has been a sea-change from mass production oriented economies of scale to niche market oriented economies of scope. As this change has taken place and gained momentum, companies have realized they need to be more agile. A wide array of products and services demands a lot more knowledge than mass production ever did. The emphasis today is on knowledgeable workers who have developed a range of useful skills.