Team global knights 2 dylan bashore shandra blunck kristy kochan amy mullin
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General Motors PowerPoint PPT Presentation

Team Global Knights 2: Dylan Bashore, Shandra Blunck, Kristy Kochan, Amy Mullin. General Motors. History. Founded by William “Billy” Duran on September 16, 1908 Leading manufacturer of horse-drawn vehicles The Buick Motor Company was the first. 1910-1929.

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General Motors

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Team Global Knights 2: Dylan Bashore, Shandra Blunck, Kristy Kochan, Amy Mullin

General Motors


History

  • Founded by William “Billy” Duran on September 16, 1908

  • Leading manufacturer of horse-drawn vehicles

  • The Buick Motor Company was the first


1910-1929

  • Opened up over a dozen new plants outside the U.S.

  • “a car for every purse and purpose”

  • The Cadillac LaSalle


1930-1959

  • Developed war supplies for allies

  • People wanted goods that had been out of reach for so long

  • Buick Roadmaster, the Chevrolet Corvette and BelAir, and the Cadillac El Dorado


1960-1979

  • Increased environmental concerns and increased gas prices

  • First production car that offered an air bag in 1973

  • Guidance and navigation system for Apollo 11

  • Lunar Roving Vehicle


1980-1999

  • Focused more on growth

  • Opened new complex in Zaragoza, Spain in 1982

  • Joint ventures with China and India

  • Added Saab and Hummer


2000-Present

  • Hybrid cars and engines that use biofuels

  • The Precept, AUTOnomy, Hy-wire, Sequel, and Chevrolet Volt

  • Shell Hydrogen

  • The first hydrogen pump at a Shell gas station


Industry Conditions

  • General Motors Top Competitors

    • Chrysler

    • Ford Motors

    • Toyota

  • Retail Niche

    • Auto Manufacturing (primary)

    • Auto Parts Manufacturing

    • Financial Services

    • Telecommunications Services Cable & Satellite Services

  • Worsening Economy

    • Potential drop in auto sales


GM Overview vs. Toyota

  • GM employees: 266,000

    • Toyota employees: 299,934

  • Today both companies only hold about 13.5 % of the global market share in the automotive industry.

  • GM Total Rev (Sep 08 Quarterly): $37,941 mil

    • Toyota: $62,586 mil

  • GM Gross Profit: $3,020mil

    • Toyota: $8,531 mil

  • GM Net Profit Margin: -6.98%

    • Toyota: 1.66%


“In Global Race, G.M. Wins by a Day of Pickup Sales”

  • In 2007, G.M. and Toyota essentially tied in sales when G.M. only sold approximately 3,000 more vehicles than Toyota.

  • This was despite industry leaders beliefs that Toyota would take over as the Number 1 auto dealer.

  • Despite the increase in sales, G.M. remains unprofitable in the U.S. and Toyota’s profits in the U.S. continue to rise.


“In Global Race, G.M. Wins by a Day of Pickup Sales”

  • G.M. is doing everything in it’s power to regain profitability in the U.S. and is willing to forego being the Number 1 auto dealer to do so.

  • G.M. profits in global aspects however on the rise.


Saturn- G.M.’s Defense

  • Saturn was created as an “import fighter” in the G.M. lineup

  • It was introduced in 1990 and performed very well capturing 75% of sales from outside G.M.

  • Stopped performing well due to G.M. stopping continuing funding like it should have


Saturn- G.M.’s Defense

  • Now G.M. is pouring major funding back into Saturn to revamp its models and use it once again as it’s “import fighter” to help capture sales

  • It’s working as Saturn is getting onto more shopping lists of potential buyer’s and converting lookers into buyer’s like never before


Possible New Strategy According to Research

  • Consolidate line by eliminating single retailers like Pontiac/Buick/GMC dealers and transform them all into Chevy dealers selling the same full line of cars.

  • Only the strongest dealers would survive after this consolidation.

  • It would allow G.M. to offer a car for every “purpose” and “purse” under one roof like the brand was initially intended to do.


GM Global Sales

  • Sales are down in U.S.

  • Sales increasing in Emerging Markets


Challenges

  • BEMs are High Context Cultures

    • Incipient and Latent

      • Asian Countries

    • Rational vs. Emotional

    • Standardization vs. Adaptation

  • Translation


GM Promotions in U.S.

  • “Our Country, Our Truck”

    • John Cougar Mellencamp

    • Ethnocentric


GM Promotions in India

Chevy Spark

Chevy India Promotion


Research Objectives

  • More Global Research

  • Focus on Researching Incipient and Latent Markets

    • China

    • High Context Cultures

    • Qualitative

      • Ex. Personal Interviews

  • Standardization vs. Adaptation


Marketing Implications

  • Develop product and promotional campaign for China

    • Polycentric

    • Product and Promotion Adaptation

  • Regio-centric Approach

    • Latin America, Africa and Middle East

    • Standardization within regions


Questions

1. Who founded GM on September 16, 1908?

  • Sangwon Lee

  • William “Billy” Duran

  • John Cougar Mellencamp

  • Henry Ford


Questions

2. What approach did GM implement when moving into India?

  • Polycentric

  • Regio-centric

  • Ethnocentric

  • Geo-centric


Questions

3. GM was the first to offer this feature in their cars in 1973. What was it?

  • Anti-lock brakes

  • Fuel efficiency

  • Air bag

  • Trunks


Questions

4. GM has been the automotive industry leader for the past several decades and will most likely be the top performing company for the 2008 fiscal year.

  • True

  • False


Questions

5. What country did GM receive the largest sales increase from?

  • Pakistan

  • Egypt

  • Germany

  • India


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