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GM Case Analysis Essay

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GM Case Analysis

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

Porter's competitive forces model

Porter's value chain model

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?

The current business strategy of GM in response to its competitive environment is based on the belief that by intensively weaving Internet technology into all of its business processes, GM could become a smarter, leaner, faster company, more in tune with customers. This technology would help GM reduce from 24 to 12 months the time to design, engineer, and manufacture a new vehicle, cutting up to 10% …show more content…

The site indicates the cars those dealers have in inventory. Dealers involved in the BuyPower selling program are trained to work with customers who have done online car buying research and must surf every auto Web site that he customers could potentially have visited before landing at GM. This approach is proving highly successful. Since September 2001, GMBuyPower has generated more than 2000 leads to dealers per day and over 20% of those leads convert into auto purchases.

The GM Owner Center, launched in January 2002, stores maintenance records and manuals for current GM owners and also provides service reminders and tools for estimating vehicle value.

DealerWorld is a Web portal featuring applications such as vehicle number identification (VIN) lookup, which helps dealers determine which incentives a buyer qualifies for on a specific period.

GMAC SmartAuction is a Web site where GM dealers can bid for leased vehicles that were returned to dealers and are now owned by GM's finance arm General Motors Acceptance Corporation (GMAC). This system is faster than live auctions and reduces the chances that autos will be damaged while being transported to a physical auction site.

Building Vehicles to Order

In order to link factories to suppliers via cyberspace and reduce procurement and inventory costs, GM and other major auto manufacturers have established Covisint, a massive Net

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