There are many automobile firms operating in the United States of America. These include General motors, Toyota, Ford, Nissan and BMW. General motors uses differentiation as its generic strategy (Hood and Lowry, 2004). Under this strategy, the company emphasizes that it longs to manufacture a car that can suit very pocket. Therefore, there are vehicles for high income earners, middle income earners and those that low income earners can afford. Cost leadership strategy is used by Ford Company as its generic strategy. This strategy was mostly used at the initial stages of the company’s manufacturing where models were limited and efficiency was mastered through learning and experience. Through this mastery, few mistakes are made during the manufacturing process. This reduces the number of faulty vehicles and thus the cost of redoing them afresh.
Toyota motor company on the other hand uses low cost as its generic strategy. The low cost strategy is made possible by the large size of the company where it has large and wide manufacturing plants.