World’s largest automaker operating in 50 countries having vehicle brands viz. , Chevrolet, Pontiac, Buick, Cadillac, Saturn and GMC Trucks and there are other production relationships with Opel, Vauxhall, Subaru, Alpha Romeo and GM non-vehicle ventures are Allison Transmission, GM Locomotives, 35 percent share with Hughes electronics and GM has a subsidiary company operating under the name GM Acceptance Corp (GMAC) . IN 1970s GM had 60 percent of U. S. vehicle market and at present it has only 28 percent.
The main competition of GM is from Ford, Daimler & Chrysler and Japanese car manufacturing companies.
Consumers have a wide variety of choices of cars offered by car companies which are luxurious and comfortable and at the same time cost effective. In the recent years, the competition in car market has reached to a stage of neck-to-neck with the fact that low cost cars of international make are being launched in domestic market and apart from this, cost of fuel has also marked a great significant costing $120-130/brl in international crude oil market.
However, in spite of the temporary decline, there is a forecast of greater scope for GM company to launch fuel efficient cars, solar cars, bio-fuel cars, diesel cars or innovative technology cars which would regain market for General Motors. 2. Information technology is of a great advantage to General Motors with the fact that the company’s offices operating in 50 countries, there is an excellent management of information systems, logistics and strategic management apart from good human resource management of business communication and communication among employees.
There is a greater opportunity for improving car business through the medium of B2B and B2C with the emergence of e-commerce. Information technology for GM motors is extensively benefiting and hugely advantageous for future growth of the company. Internet technology is greatly enhancing to the growth of General Motors in a way that bringing car dealers, car suppliers and car buyers together to a single platform of World Wide Web and communicate from one channel to another for international business management.
For instance, Saturn cars which are General Motors brand generate 70 percent of new customers through the Internet. A website that is user-friendly enables potential customers to enter details of car type and buyer details which creates an email and a link to the local dealer. Local dealer takes care of buyer details and delivers car to the customer with the execution of appropriate business formalities. This is a massive approach to global customer who has access to an international brand of car by just clicking at a website and by paying value of car through credit and debit card.
There is also a great business opportunity for General Motors to reach those countries where GM cars are not available particularly in Asia and African countries and customers in these countries have an opportunity to buy cars from GM web site. GM has already established a reputed market in Europe and U. S and has excellent marketing chain and network in these countries. 4. Time always indicates change and change is inevitable whether it is with CEO, COO or CFO or any other leadership that affects management and functioning of organization.
There are many innovative management strategies, business strategies and partnerships that are developing from General Motors which are in the interest of progress and future growth of the company. In the present scenario, the company is absolutely performing well in business strategy, management of organization whereas it requires a detailed and analytical working in order to compete with the new entrants and meet the satisfaction of customers in the most appropriate manner as a part of customer relationship management.
5. General Motors is completely equipped with business processes and the company is constantly pursuing both the vision and mission as in the past. However, the company need to conduct periodical market survey as well of customer demands and likes about General Motor’s cars, regular feedback, opinions and other market data would assist General Motors to redesign the systems, business processes and to build excellent customer relationship management.
Strengthening employees with greater skills and technical expertise is one of the human capital asset that General Motors can invest in, secondly, marketing strategies should be according to the trend in the market such as conducting auto shows, replying to customer queries by giving details as to which model is suitable and how better and best the customer gets satisfied with a particular model and it must also be remembered here with customers are more informative than companies with the fact that, there is a galore of information available for a customer on Internet to buy a particular model of car.
Therefore, General Motors must be able provide excessive care in customer service apart from marketing and sales. 6. General Motors is planning to spend $1. 5 billion for online advertising which indicates that the company forecasts a potential growth of sales through Internet online sales.
For many companies, Internet offers a massive scope for business expansion, improving competition and also is a method of diversification of business strategies. Almost every success is made possible through online marketing and sales, whereas there are also threats such as for intermediary functions and for making transactions free and fair transactions through legal formalities.
These require a stiff corporate working in order to avoid any unforeseen fraud transactions and even to prevent net hackers from spoiling the reputation of online sales.
References Business Technology: Digital strategy and the search for the ‘killer app’ Accessed May 31, 2008 http://www. thinkingmanagers. com/management/business-technology. php General Motors case Accessed May 31, 2008 http://www. geneseo. edu/~lim/GM2. ppt#300,22,Build to Order
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Vehicle brands. (2020, Jun 02). Retrieved from https://studymoose.com/vehicle-brands-new-essay