Low cost strategy question

1. Appraise/speculate about General Motors’ key resource strengths and competitive capabilities within the auto industry.  What competitive liabilities and resource weaknesses does it have? What opportunities might GM exploit? What threats to its continued success are present?

2. “Deciding which generic strategy to employ is perhaps the most important strategic commitment a company makes – it tends to drive the rest of the strategic actions a company decides to undertake and it sets the whole tone for the pursuit of a competitive advantage over rivals.” (Thompson, Chapter 5, pg. 103)

• Go to www.google.com and do a search for “low-cost strategy.”  See if you can identify several companies with a consistent low cost strategy.  What are some of the advantages and disadvantages they face?

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