A Major US

Essay

A major U.S. automaker from 1902 to 1966, Studebaker Corp. prospered in the late 1940s and into the 1960s. Its advertising after World War II emphasized quality of design and production. The corporation also used the stability of its work force in its advertisements, often featuring pictures of father and son working side by side in its factories.

Required:
(a) From just this brief description of Studebaker Corporation, which type of competitive strategy-cost leadership or differentiation, would you guess Studebaker was using? Explain your choice.
(b) Given your answer in Part (a), speculate on what market factors might have caused the corporation to go into bankruptcy and cease production in the mid-1960s.