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Helena Boe, Diane Ketler, Nicole O’Keefe, Andrew Rubenstein & James Siverio. GM’s Portfolio . Core Brands:. Exiting Brands:. Non-US Brands:. South Korean. Australian. European-(German). European-(British ). GM History. GM founded 1908 Took over Buick, Pontiac, Cadillac
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Helena Boe, Diane Ketler, Nicole O’Keefe, Andrew Rubenstein & James Siverio
GM’s Portfolio Core Brands: Exiting Brands: Non-US Brands: South Korean Australian European-(German) European-(British )
GM History • GM founded 1908 • Took over Buick, Pontiac, Cadillac • Market share peaked in 1960 at 48.3% • Was leader of global auto sales for 77 years 1927 2010
Strategic Issue Facing GM Avoid Bankruptcy • Obama Administration gave GM 60 days to restructure • GM has until June 1stto turn itself around
Current Economy • Gross Domestic Product • (6.29)% • Inflation Rate • (0.62)% • Unemployment Rate • 8.9%
Current Auto Industry • US Auto industry dominated by five firms • Mature Industry • Consumers looking for “green” / more fuel-efficient cars
General Motor’s Strategy Product Differentiator “A car for every purse and purpose” • Worked from 1931-2008 • Largest Auto Maker Foreign Entrants Toyotatakes title • Problem: • Too many brands to manage
Threats • Entry • Generally low • High barriers for new firms • Buyers • High level of control over dealers • Current downsizing • Substitutes • Effects of increased fuel prices • Green movement • Consumer disposable income Public Transportation Revenue Growth Rate
Threats (Continued) • Suppliers • Three-tiered supply chain • Highly intricate relationships • Heavy reliance on suppliers • Changing Consumer Trends • Trend away from trucks & SUVs • Economic downturn and rising fuel prices • Rivalry • Direct vs. Indirect Competition • High costs of production • Diversified products
General Motors Today • Bush Plan • Obama Plan: March 30th • GM not viable to succeed • Restructuring (60 Days): • Get rid of CEO, Jobs, Plants, Brands • Government Intervention: • 55% Stake in GM • Warranties • Incentive program June 1st: Restructure or
Opportunities & Outlook • Change strategy from product differentiator • Take advantage of…
Recommendations • 1. Focus on core brands • 2. Invest in new technology • Efficient Production • Hybrids • Electric Cars • 3. Focus on customer needs and wants • 4. Be more flexible in the future to changing demands