General Motors

1
General Motors

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

2
History

• Founded by William Billy Duran on September 16,
  1908
• Leading manufacturer of horse-drawn vehicles
• The Buick Motor Company was the first

3
1910-1929

• Opened up over a dozen new plants outside the
  U.S.
• a car for every purse and purpose
• The Cadillac LaSalle

4
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

5
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

6
1980-1999

• Focused more on growth
• Opened new complex in Zaragoza, Spain in 1982
• Joint ventures with China and India
• Added Saab and Hummer

7
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

8
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

9
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

10
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 Toyotas profits in
  the U.S. continue to rise.

11
In Global Race, G.M. Wins by a Day of Pickup
Sales

• G.M. is doing everything in its 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.

12
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

13
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 its import fighter to help capture sales
• Its working as Saturn is getting onto more
  shopping lists of potential buyers and
  converting lookers into buyers like never before

14
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.

15
GM Global Sales

• Sales are down in U.S.
• Sales increasing in Emerging Markets

16
Challenges

• BEMs are High Context Cultures
• Incipient and Latent
• Asian Countries
• Rational vs. Emotional
• Standardization vs. Adaptation
• Translation

17
GM Promotions in U.S.

• Our Country, Our Truck
• John Cougar Mellencamp
• Ethnocentric

18
GM Promotions in India
Chevy Spark
Chevy India Promotion
19
Research Objectives

• More Global Research
• Focus on Researching Incipient and Latent Markets
  
• China
• High Context Cultures
• Qualitative
• Ex. Personal Interviews
• Standardization vs. Adaptation

20
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

21
Questions

• 1. Who founded GM on September 16, 1908?
• Sangwon Lee
• William Billy Duran
• John Cougar Mellencamp
• Henry Ford

22
Questions

• 2. What approach did GM implement when moving
  into India?
• Polycentric
• Regio-centric
• Ethnocentric
• Geo-centric

23
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

24
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

25
Questions

• 5. What country did GM receive the largest sales
  increase from?
• Pakistan
• Egypt
• Germany
• India