As America's demographics became more stable and goods from the Third World saturated the US market, it became apparent that the low-cost production strategy was sustainable only in a static world, where there was no competition from outside and the market factors remained unchanged, or in a world where in order to meet changing market factors, companies could switch their strategic focus forward and back with no implications for their brand image. But the real world never works in this way. Market factors change frequently in a dynamic world, whereas brand images remain inflexible. When a company positions itself as a low-cost provider, it builds its brand accordingly. The brand image makes it hard for the company, though not impossible, to change its strategic focus from cost to quality when market factors change. It would be as hard for Ford to shift its brand image from one of a low-cost producer to a quality provider as it would be for McDonald's to switch over to French cuisine.
In an increasingly global market, the only viable option for US businesses is to produce high-quality products for the simple reason that the relatively high labor cost in the US will force American low-cost producers out of business, when competing with foreign suppliers.
The American challenge a hundred years ago was to build the country rapidly, and low-cost production was the answer. The struggle now is to rescue American businesses from competition from low-cost countries, and quality seems to be the only solution.
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