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Marketing Analysis of General Motor (Gm) in China

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1.0 Executive Summary This strategic marketing report prepared for the General Motors (GM) detailed a thorough analysis the motor vehicle market in China. GM was a US automaker company, and entered the market of China by joint ventures. SAIC is GM’s major joint venture partner, and it had become the largest plant in China. GM was earning high profits from China by 2004. However, GM faced the challenges from both foreign and local competitors, overcapacity and intervention from Chinese Government. In 2004, the sales dropped sharply. The first part will be analyzed by STEP theory of the motor vehicle market in China in 2004. Then we will use SWOT analysis to examine if China is still an attractive market for GM. Next, we will …show more content…

It provided sufficient financial resources to the firms to further expand its business in China. GM entered China market by joint venture. GM and its major partner, SAIC, could offer the widest portfolio of products among automakers in China. Through joint ventures, GM could create a good relationship with Chinese official, which was very important in doing business in China. GM could also access the market of China easily, while those importers without joint ventures were not allowed to do so. In 2004, GM was the first foreign automaker to be permitted to issue auto loans to its buyer in China. Although other carmakers followed this action of doing the auto business, GM had a first start and this would allow them to enjoy a short period of time of limited competition, and lead to the sales increase greatly in China market. 4.2 Weakness GM experienced profits drop in the third quarter of 2004. Intellectual property was a critical challenge for GM in China. Through by joint venture, GM’s local partners could copy designs and technologies of the foreign investors, and sell the cars at a lower price with many similar features. Besides, the domestic corporations might set up their own facilities and compete against the joint venture, and export to foreign form’s markets throughout the world, and GM could not do anything to stop this action. By 2004, GM major partner, SAIC, had already have its plan to compete against GM by producing its own brand

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