GM corporation

GM corporationCoures: Stratigic ManagementLecturer: Prof. Thomas Bradley

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Introduction

General Motors Corporation (GM) is the world's largest automaker and has been the global industry leader in sales for 76 years.

The United States is GM's largest national market, followed by China, Canada, the United Kingdom, and Germany.

Today, the company employs about 284,000 people worldwide. With its global headquarters located in Detroit, GM manufactures cars and trucks in 33 countries.

In 2006, GM sold 9.1 million cars and trucks globally under the brands Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, Hummer, Opel, Pontiac, Saab, Saturn, and Vauxhall.

GM has fostered partnerships with many automobile manufacturers around the world.

Introduction (Cont.)In 2006, GM sold 9.1 million cars and trucks globally under the brands Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, Hummer, Opel, Pontiac, Saab, Saturn, and Vauxhall.

GM has fostered partnerships with many automobile manufacturers around the world.

Mission statement"G.M. is a multinational corporation engaged in socially responsible operations, worldwide. It is dedicated to provide products and services of such quality that our customers will receive superior value Our employees and business partners will share in our success/ Our stock-holders will receive a sustained superior return on their investment.

Vission statement"Over the past 100 years, GM has been a leader in the global automotive industry. And the next 100 years will be no different. GM is committed to leading the industry in alternative fuel propulsion.""GMs vision is to be the world leader in transportation products and related services. We will earn our customers enthusiasm through continuous improvement driven by the integrity, teamwork, and innovation.

HISTORY The company was founded on September 16, 1908, in Flint, Michigan, as a holding company for Buick, and then controlled by William C. Durant. At the turn of the 20th century there were fewer than 8,000 automobiles in America and Durant had become a leading manufacturer of horse-drawn vehicles in Flint, MI, before making his foray into the automotive industry. GM's co-founder was Charles Stewart Mott, whose carriage company was merged into Buick prior to GM's creation. Over the years Mott became the largest single stockholder in GM and spent his life with his Mott Foundation which has benefited the city of Flint. In 1909, GM acquired the Reliance Motor Truck Company of Owosso, Michigan, and the Rapid Motor Vehicle Company of Pontiac, Michigan, the predecessors of GMC Truck .

HISTORY ( Continue )GMs market share peaked in the 1960s where they held 48.3% of the overall US market share. This total began to decline in the 1970s and continued to present day, due to greater international competition, mainly coming from the Japanese companies of Toyota and Honda. They strayed from the traditional American muscle cars, which were bulky and had poor gas mileage, to sleeker designs with better quality and efficiency .

SCOPEPRODUCT / SERVICES SOLD :PRODUCT : Diesel EnginesMarine EquipmentStationary and Industrial

SERVICES :Locomotive Maintenance Locomotive Management Leasing TrainingWelding

PRODUCTSRunning global business environment for over decades as well as presence in 37 nations under ten main brands (Chevrolet, Buick, GMC, Cadillac, Holden, Opel, Vauxhall, Wuling, Baojin, Jie fang, and Daewoo).GM cover a wide range of products and services. Besides, they also produce diesel engines, marine equipments, and even stationary.Currently, GM mainly focus on several below brands since they experience a high in sales and significantly contribute to the firms success against other rivals.

Featured ProductsChevrolet:- Brand Positioning: Expressive Value High Value Appeal with High Retail Volume- Dealer Throughput: Growing to match Toyota in large markets

Featured ProductsBuick-Pontiac-GMC:- Brand Positioning Buick: Sophisticated Quality, Luxury and Craftsmanship Pontiac: Youthful & Sporty with niche focus GMC: Engineering Excellence with Capability and Functionally- Dealer Throughput: Growing to match Nissan in large markets

Featured ProductsCadillac:- Brand Positioning: Performance Luxury with Aspirational Appeal Global Luxury Brand- Dealer Throughput: Growing to match Mercedes in large markets

GM GLOBAL MAP

Whether the company is planning to expand its market and howGM has decided to limit its product portfolio and focus on (Chevrolet, Cadillac) as its full-line marquis. Saturn, Hummer and Saab would be positioned as smaller niche brands, and Pontiac. GMC and Buick would be combined into a complementary distribution channel that could account for at least 1.2 million cars and trucks annually.

OPERATIONAL STRUCTURE

COMPETITORS

COMPETITORS

Daimler Chrysler Being the number two auto manufacturer in total revenue, Daimler Chrysler has become the industry leader having many strengths. The main products of Chrysler are very well-known and have the customer attention such as Dodge, Chrysler, Jeep, and especially Mercedez-Benz product lines.

COMPETITORSFord Motor CompanyThis is a global company with two core businesses: Automotive and Financial Services. The Automotive business include the design, development, manufacture, sale and services. Ford focus on cutting costs to increase margin more than the others. Ford is the innovator in the auto industry due to the fact that reversing engineering products.

Toyota Motor Corporation

The company was incorporated in 1937 and has a large number of strengths being the industry leader. They have three main brands: Toyota, Lexus and Scion. Having three different brands, it helps the company to reach many new sectors and diversify the customers choice. Especially , Toyota was the leader in Total Quality Management by using Kaizen theory.

COMPETITORS

COMPETITORS

GMs COMPETITIVE ADVANTAGES

Global presenceNew vision and strategyLargest manufacture in the marketStrong management teamStrong brand portfolioStrong presence in ChinaKnowledge of home marketWell performing brandsLarge employee base with highly educated engineers and good R&D departmentHuge increase in total equityMinimal service complains

GMs COMPETITIVE ADVANTAGESGlobal presence The company presence in nearly 157 countries and the Chevrolet brand reached 4.95 million units in the world . Moreover, the company lead the auto market in 77 years until 2007 .New vision and strategy: After GM has received the financial support from the U.S government since 2008, they learn many invaluable experiences and conducting reorganize their business operation. Daniel Akerson, who was the new CEO, has decided new strategies as well as the firms visions toward business which even led GM to severe conditions, known as costly and hard to compete in products.

GMs COMPETITIVE ADVANTAGESThe largest manufacture in the market: GM has established their headquarter in Detroit( the USA), where they now employ 204,000 people in every foremost region of the world, on top of doing business with some 157 countries . GMs largest national market is in the United States, as well as China, Brazil, Germany, the United Kingdom, Canada, and Italy. GM and its strategic partners produce cars and trucks in 34 countries . General Motors sells service and vehicles through a plethora of brands such as: Buick, Cadillac, Chevrolet, and GMC. General Motor also produces cars through its GM Daewoo, Holden, Opel, Vauxhall, and Wuling units .

GMs COMPETITIVE ADVANTAGESStrong management team: GM works with groups like the National Society of Black Engineers, the Society of Hispanic Professional Engineers and the Society of Women Engineers. Said by CEO Kenneth Barrett. GM want to get the right engineers to be keynote speakers and participate in forums, as panelists on a subject area, or in breakout sessions where we can highlight the technical innovations of the organization.

GMs COMPETITIVE ADVANTAGESStrong Brand portfolio: The firm sells 18 automobile brands to satisfy customers needs . The most well known brand are Cadillac, Buick, GMC and which sell very well in either USA and China market.

Strong presence in China: China is the largest automotive market and it is also the second largest market for GM to sell their vehicles . They enter the China market by using well performing partnerships and local Buick brand.

GMs COMPETITIVE ADVANTAGESWell performing brands: Establishing in Detroit Michigan in 1910 General Motors has produced a stable of automobiles such as Chevrolet, Pontiac Cadillac and Buick which become household names in the U.S. General Motors Brand is well rooted not only in America but through out the world.

Knowledge of home market : GM not only holds more than 18% market share but also being the largest car manufacturer in the US

MARKETING

https://www.youtube.com/watch?v=rsHs4pkpbG8&list=UUMMTsbfETvrSwwcvB7VE-iw.

E- COMMERCEGM defined customers who are independent, informed, impatient, and demand immediate gratification. The company said they want to deliver products and services at "their pace and fast.GM Social Hub :

RECOMMENDATIONS1. Market Penetration Strategic Globally: Potential market for GM is China. China is country have the largest population in the world and it is the second largest market in the word so that they can obtain their reputation again. If GM can enter the China market they will have Strategic regional operation have to be maintained if profitable, but if not, production needs to be outsourced to reduce costs. They can create more new car to take back their reputation and customer truth due to the fact that the cost for create new car is cheaper, so they can create more product to satisfied customers needs.

RECOMMENDATIONS2. Production of Fuel Efficient Cars : Nowadays, more and more customers are aware of using gasoline engines which causes pollution. Creating a hybrid, electric or cleaner fuels now becomes a general trend since it consumes less gas emission and high in quality as well as competitive cost. We strongly believe that problem of GM is rebuilding peoples trust again in the future and moreover they can make their products become diversified. If they can lead this new industry market ,they can create more new car to make their products become diversify.

RECOMMENDATIONS3. Make Alliance With Competitors: When GM alliance with Peugeot, they can strengthen their brand in foreign market and can save money as well as time to create new car, they can use the Peugeot ideas and factories to create diversified cars.

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