Chapter 4' Case study

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Chapter 4. Case study

• 200224010 ???
• 200224015 ???

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1. Analyze GM using the competitive forces and
value chain models.

• The company continues to face stiff competition
  from Ford, Chrysler, and Japanese.
• Customers are balking at the monthly subscription
  fees and nearly half of Onstar subscribers dont
  renew their service after the first year.? no
  use.
• We cant know value chain models T_T

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2. Evaluate the current business strategy of GM
in response to its competitive environment. What
is the role of Internet technology in that
strategy? How successful is that strategy?

• Four main goals for the corporation, including
  his intention to focus on innovative products and
  services and the development of e-business.
• Intensively weaving Internet technology into all
  of its business processes, GM could become a
  smarter, leaner, faster company, more in tune
  with customers.
• Internet technology could be the catalyst for GM
  to reconstruct its entire value chain,
  transforming itself into a customer-focused
  business that provides many different electronic
  services to consumers.

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3. Evaluate each of GMs e-commerce and
e-business initiatives described in this case.
How much value can they bring the company?

• GMBuyPower.com ?GMBuyPower has generated more
  than 2000 leads to dealers per day and over 20
  of those leads convert into auto purchase.
• GMSupplyPower? Cut the cost producing each
  vehicle by perhaps 1000 as well as reduce the
  time from receiving a car order on-line to
  delivery from about 45 days 10 days.
• OnStar? GM cars become a platform that generates
  a continuous stream of high-margin revenue form
  drivers down loading and paying by the minute for
  Internet, dara, and telecommunication services.

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4. What management, organization, and technology
issues do you think GM has had to face and will
need to solve in implementing its internet
strategy?

• Management OnStar has nearly 2 million
  subscribers but it is not yet profitable.
• Organization GM use the internet to transform
  its hidebound bureaucracy, and will this be
  enough to boost profits over the long run?
• Technology Using the internet has beefed up its
  design team and produced some of the most
  advanced designs in the automotive world, but
  this is still a weak spot.

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5. How will GM have to redesign its business
processes to be able to compete successfully and
achieve a leading role in the new economy?

• Paring down the waste and overbloated
  bureaucracy.
• The company has slashed the time required to
  develop and produce a car from 48 to 18 months,
  eliminating 1 billion in engineering costs.
• It has also developed new online sales channels
  and sources of revenue.
• GM has made remarkable improvements in quality

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6. In GMs drive to sell cars online and to
build-to-order, what are some of the problems
that technology cannot address?

• Inventories of certain kinds of parts modules,
  such that you can be flexible enough to take a
  generically, defined car, then at the last minute
  suddenly have a defined car.