Report to CEO (GM)
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Report to the CEO
Introduction General Motors operates in the automotive industry. Relying on its extensive manufacturing
capabilities, brand recognition, and historical presence, it has chosen a strategy of transitioning
towards an all-electric future (electric vehicles (EV)). But certain factors have raised the issue of
effectively competing in the electric vehicle (EV) market and achieving market leadership.
These factors include:
1.
Intense competition
2.
Charging infrastructure 3.
Range and battery technology 4.
Regulatory environment
5.
Equity and inclusion
This report provides an analysis of the issue, suggested alternatives to addressing that issue, and a
recommended alternative for General Motors to pursue.
Analysis
1.
Intense Competition The automotive industry, especially the EV segment, is highly competitive. Tesla, as a well-
established leader in the EV space, has set high standards for innovation, technology, and
brand appeal. Moreover, traditional automakers like Volkswagen and Ford have also invested
heavily in EVs and are aggressively expanding their EV portfolios. GM needs to differentiate
itself in this competitive landscape by showcasing unique selling points, such as technology
innovations, diverse vehicle offerings, and a strong commitment to sustainability and ESG
goals (Case, 5-6)
2.
Charging Infrastructure
The lack of a comprehensive charging infrastructure can hinder EV adoption and customer
confidence. GM must take an active role in addressing this issue by investing in charging
networks, collaborating with charging solution providers, and working with governments to
promote the expansion of charging infrastructure. By ensuring convenient and accessible
charging options, GM can alleviate customer range anxiety and increase the appeal of its EVs
(Case, 4)
3.
Battery Technology and Range
Battery technology is the backbone of EV performance and cost-effectiveness. GM's success
in the EV market heavily relies on developing and utilizing advanced battery technology that
offers improved range, quicker charging times, and lower costs. Staying ahead in battery
innovation will enable GM to offer compelling EV models that meet or exceed customer
expectations, leading to higher market acceptance and improved market share. (Case, 4)
1 | P a g e
4.
Regulatory Environment
Environmental regulations play a significant role in shaping the future of the automotive
industry. As governments worldwide push for stricter emissions standards and offer incentives
for EV adoption, GM must align its strategies with evolving regulatory requirements.
Embracing these changes will not only help GM avoid potential penalties and compliance
issues but also position the company as an environmental steward and a responsible corporate
citizen. (Case, 4)
5.
Equity and Inclusion
GM's pursuit of sustainability and EV leadership should encompass a commitment to equity
and inclusion. The company needs to ensure that its EV initiatives consider the needs and
access of all communities, including those in rural and lower-income areas. By proactively
addressing disparities in charging infrastructure and EV adoption, GM can demonstrate its
dedication to inclusivity and social responsibility. (Case, 8)
To address these obstacles, GM should prioritise constant research and development, strategic
collaborations with battery suppliers and charging infrastructure providers, and using existing
manufacturing skills to effectively produce EVs at scale. Furthermore, the corporation should
spend in marketing and branding to showcase its commitment to sustainability and position its
EVs as dependable and desirable solutions for consumers. By addressing these issues as part
of its overarching strategy, GM can better position itself to achieve its vision of a world with
zero crashes, zero emissions, and zero congestion, while becoming a leader in the rapidly
evolving electric vehicle market.
Alternatives
Alternative 1: Focus on Battery Technology Advancements
General Motors can prioritize research and development efforts to make significant advancements
in battery technology. By investing in next-generation battery technologies, GM can improve the
range, charging times, and cost-effectiveness of its electric vehicles (EVs). This would enable
GM to offer competitive EV models that appeal to a wide range of customers. The company can
collaborate with leading battery manufacturers or acquire battery start-ups to accelerate
innovation.
Pros:
Cutting-edge battery technology can give GM a competitive advantage over rivals,
making its EVs more attractive to consumers.
Improved battery technology would lead to longer ranges and quicker charging times,
addressing common concerns of potential EV buyers.
Advanced batteries with higher energy density could lead to cost savings in production,
driving down the overall cost of EVs.
Cons:
Developing new battery technologies is complex and costly, with no guaranteed
outcomes.
Significant R&D efforts could delay the launch of new EV models.
Other automakers and technology companies are also investing heavily in battery
research, intensifying the competitive landscape.
2 | P a g e
Alternative 2: Investment in Charging Infrastructure
This alternative involves GM taking a more active role in developing and expanding charging
infrastructure. By partnering with charging solution providers, investing in charging networks,
and collaborating with governments, GM can help build a comprehensive and accessible charging
infrastructure for its customers. This would address the range anxiety issue and increase consumer
confidence in adopting GM's EVs.
Pros:
A robust charging infrastructure would make EV ownership more convenient, attracting
more customers to GM's EV offerings.
Strong commitment to charging infrastructure development can demonstrate GM's
dedication to sustainability and customer-centricity.
A reliable and widespread charging network could lead to increased customer loyalty and
retention.
Cons:
Building and maintaining a charging network requires substantial financial resources.
Collaborating with various stakeholders and governments may lead to coordination
challenges and delays in implementation.
The success of this alternative is dependent on the growth and development of the
charging infrastructure market, which is subject to uncertainties.
Alternative 3: Strategic Partnerships and Acquisitions
GM can explore strategic partnerships or acquisitions with established EV start-ups or companies
specializing in advanced EV technologies. By acquiring or partnering with these entities, GM can
gain access to cutting-edge EV technologies, expertise, and existing customer bases.
Pros:
Partnerships or acquisitions can fast-track GM's entry into new markets and segments.
Teaming up with specialized companies can provide GM with invaluable insights and
expertise in the EV industry.
Strategic partnerships can allow GM to diversify its EV offerings and cater to different
market segments.
Cons:
Merging different corporate cultures and operations can lead to integration challenges and
disruptions.
Acquisitions can be costly and may not always yield immediate returns.
The success of the partnership relies on the performance and stability of the partner
companies.
3 | P a g e
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