Studebaker Corporation,one of the Earliest Auto Manufacturers,prospered in the Late

question 8

Essay

Studebaker Corporation,one of the earliest auto manufacturers,prospered in the late 1940's and into the 1950's.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.Studebaker attempted to achieve a distinctive quality image in its advertising as a way to differentiate itself from other auto company products.Presumably,by emphasizing the design and the way the car was made,the firm was trying to impress that Studebaker would be more desirable than competitive autos.Additionally,the advertisements tried to appeal to masses hearts and not just need for transportation and this clearly is not a cost leadership issue.(Its cars were competitively priced,but the company was not a cost leader,nor did it attempt to focus on a particular segment of the auto-buying public. )
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.
B.If differentiation was the chosen answer,it follows that the stress on quality eventually led to higher cost (and prices)that made the car less competitive.In fact,this was partly the reason the company failed,but futuristic design resulted in a look the public was not ready to accept.If the students chose cost leadership as the answer,their explanation would have to be evaluated on the basis of its logic and originality.

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Definitions:

Special Order

A one-time customer order often requiring a deviation from the standard product line or service offerings, potentially at a different pricing or cost structure.

Outside Supplier

An external entity that provides goods or services to a company, often used in the context of manufacturing or production.

Required Units

The amount of products that need to be produced to meet customer demand or sales forecasts.

Supplying Commitment

An agreement or pledge by a supplier to provide a specified quantity of product to a purchaser at a predetermined time and price.