Suppose You Were a Consultant to General Motors and Were

Multiple Choice

Suppose you were a consultant to General Motors and were concerned with the fact that although demand is great today, GM may do poorly in the future because competition from foreign producers is growing and there is no indication it will stop. What would be awise strategy now for you to address this concern? Advise GM that it should

A) seek a conglomerate merger with some other firm or group of firms
B) build larger plant capacity to increase your market share
C) create more brands (car models) in order to price discriminate
D) cut price to establish brand loyalty
E) seek a vertical merger with some other firm or group of firms