Gm - Strategy Analysis

1529 Words Apr 19th, 2011 7 Pages
General Motors Company is an American global auto-manufacturer with its headquarters in Detroit, Michigan. It is world’s second largest automaker after Toyota. GM is conducting business in more than 157 countries, employing over 209,000 people. It manufacture cars and trucks in 31 countries and sell, service its product through these divisions-Buick, Cadillac, Chevrolet, GMC, Opel, Holden and Vauxhall. It was established in 1908. It has led global sales for continuous 77 years from 1931 to 2007. In recent years GM has faced many financial losses i.e. 103.7 billion loss from year 2005-2009. In 2009 it was reorganized by US government under bankruptcy protection program. It was re-listed on major stock exchanges in 2010 with the world’s …show more content…
It was part of their Global Strategy as Cruze was General Motor’s first global small car. According to Chevrolet’ European Chief it is sleek, it has a high tech interior and arched roofline and most importantly it was Chevrolet’s first global product that would be the future of where the brand will be.
Before launching the Cruze, General Motor had been trying very hard for many years to make Chevrolet as its main global brand. This is because they are very different from their main competitors i.e., Honda and Toyota, General Motor has a huge brand portfolio in different countries. For example, Chevrolet dominates in US, Opel in Europe and Buick in China. They also took over Daewoo in South Korea in 2002 and after rebranding some of their models GM started selling them in Asia and Europe under the name of Chevrolet.
There was a huge strategy of GM behind launching Cruze. With a brand new design, Cruze was launched when GM needed the most. The major reason behind it was there was a huge downfall in the auto sales of GM in US. That is why GM planned to launch a global product that would help them to recover losses that they suffered.
RISKS INVOLVED: -
Besides a vision to gain profit there were some risks involved as well with the launch of Cruze. The first risk was tough competition from the rivals and another was low fuel economy. Cruze was expected to give a fuel economy of around 40 plus miles per gallon which was good enough

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