Company Case 15 Buick: Number One Imported Brand.
1. Does Buick have a truly global strategy or just a series of regional strategies? Explain
We believe that Buick has a series of regional strategies we believe this because their main focus is the American and Chinese automobile industries for a decades GM international marketing strategy was largely characterized by exporting products made for the us market in GM thinking what worked in America would work globally this included selling left hand drive cars in right hand drive countries like Japan and Britain the strategy made sense at a time when the United States was far and away the biggest car market in the world and GM was selling far more cars in the United States than
…show more content…
The designer of LaCrosse model Joe Qiu said "I looked at where people lived, where they hung out, and then I tried to create that same feeling inside the car". LaCrosse and other models in not only selling in China but it exported to US and other countries and Shanghai-GM became the lead of Buick sales. Thus GM use product invention strategy and create something new of Buick models to meet customer need and want, and success to raise the sales not only in China but around the world (Armstrong & Kotler, 2011).
4. Can Competitors easily replicate Buick's strategy in China?
It's difficult to replicate Buick's strategy in China due to the good repetition created for the company. However, the completion is still on the scene when other big company such as Ford and Toyota use the same strategy to satisfy consumers need. As GM created Baojun the inexpensive model in China, Ford developed economical low price model called Figo in India, and that will increase the competition if Figo enters China market (Armstrong & Kotler, 2011).
Indeed, GM sold more cars than Ford in china because Buick has a good repetition in the past and has an excellent experience in last decade lead to save the car from other brands like Pontiac. Furthermore, the design of some Buick models like LaCross has been driven by the tastes of Chinese buyers. So GM considered the culture impact and reflect that to their product (MEINERS, 2010).
There are several
Ford has a very strong brand name and offers wide range of cars like automobiles, commercial vehicles, luxury vehicles etc. they also target different set of customers.
General Motors Corporation (NYE: GM) is the leading American automaker in the world with its operations spanning in 157 countries. The car manufacturer was established in 1908 in Michigan and today it is headquartered in Detroit, the United States of America. Besides the domestic industry of the United States of America, General Motors manufactures cars and trucks in other 30 countries around the world. Among its brand products are Cadillac, Buick, Chevrolet, GMC, GM Daewoo, Hummer, Holden, Opel, Saab, Pontiac, Vauxhall, and Saturn. Besides these brands that are owned by the automaker, GMC also operates joint ventures in China and Japan. That is, Shanghai GM and SAIC-GM-Wuling
DQ 1: Summarize the most important benefits and risks associated with diversification into global markets.
Theodore Levitt is often considered to be the first to recognize the trend towards globalization and states that: “companies must learn to operate as if the world were one large market – ignoring superficial regional and national differences…” In addition, he argues that the companies that do not adapt to the new global realities will become the victims of those that do.
The Asia Pacific Africa market grew 3.7 percent and their market share in China soured to a record high of 4.3 percent. “Next year, Ford is on track to open its Changan Ford Assembly Plant No. 3 and Changan Transmission Plant in Chongqing, China, as well as Camacari Engine Plant in Brazil. The new Chongqing Assembly Plant will increase the company’s production capacity in China by 300,000 units next year (Ford’s 2014 Global Strategy, 2013).
1.Briefly describe reasons for Phillips and Matsushita to operate internationally. Why do they do it? Describe the international strategy of Phillips and Matsushita using the international strategy classifications we discussed in class (e.g., localization, transnational, global).
There were opportunities in India and in China to diversify the market and raise revenue for Ford Motor Company by introducing new vehicles that was suitable for their population and needs
General Motors Corp. (NYSE: GM), the world's largest automaker, has been the global industry sales leader for 76 years. General Motors was founded 1908, in Flint, Michigan and currently employs approximately 284,000 people around the world. GM's global headquarters is the Renaissance Center located in Detroit, Michigan, USA, They currently manufacture their cars and trucks in 35 different countries. Its European headquarters are based in Zurich, Switzerland, and its Holden headquarters are located in Melbourne, Victoria, Australia. In 2007, 9.37 million GM cars and trucks were produced globally under the following 12 brands: Buick, Cadillac, Chevrolet, GM Daewoo, GMC, Holden, Hummer, Opel, Pontiac, Saab, Saturn and
General Motors has always had a reputation of diluted products. They had many vehicle lines with many differend brands. This idea was to offer a product that appealed to many different target markets. They have since simplified their product lines by selling off certain brands. Oldsmobile, Saturn, Saab, Hummer, and Pontiac have been disbanded and the new General Motors is a tighter more organized business as a result. Cadillac and Buick have seen steady growth within their sector and have been marketed very well to date. Cadillac is seen as prestigue symbol and has a larger pricetag than any of the other models. Buick is showing phenominal growth with an introduction of new products that is taking the focus of
In 1992, Ford Motor Company decided to produce a world car, that is, a car that would be produced and sold internationally with little variation in the vehicle between markets. This world car was named the Ford Contour and Mercury Mystique for the North American market and the Ford Mondeo for the European Market. All of these models were built with a 90% similarity due to body design differences, local conditions and mandates.
General Motors enjoys a major market share in global automotive industry. One of its major strengths is its strong branding and market position. General Motors can be considered as one of the pioneers of modern vehicles. As per data monitor, GM had a leading share in North America and South America and in Europe it held fifth position. Similarly, it holds second position in other major segments. GM bears a strong branding. A lot of prestigious brands are provided by General Motors such as Chevrolet, GMC, Buick, Cadillac and Opal. Like Toyota, GM also has various production facilities in 31 different countries. This strong global presence allows GM to have access global markets way easily as compared to manufacturers with centralized structures. Thus, GM relies less on exports, manufactures its brands locally and is also involved in
Creation, acceleration and emotion are the key components for any automobile industry to deliver its goods to the expected standards. General Motors, popularly known as GM has been a pioneer in the global autoindustry for more than 100 years. Developing from horseless carriages to the latest sports cars, innovations have always excelled at putting the world on wheels. In fact, there are a lot of exciting things to share about the company. GM’s corporation started in 1892 by R.E. Olds, with a solid financial foundation, which enabled him to produce great vehicles for customers and build a bright future for employees, partners and shareholders. GM slowly initiated its staff of experts in the factories which are located in different parts of the globe and acquired the brands like Chevrolet, Pointiac, GMC, Buick, Cadillac(General Motors Corporation, 2015). Leading the way is their tailored leadership team who set high standards for the company so that they can produce the best cars and trucks. This means that GM is committed to deliver vehicles with compelling designs, flawless quality and reliability, leading safety, fuel economy and commercial features. All are intended to create that special bond that can only happen between a driver and a vehicle. General Motors is a customer driven company and aims at earning customers
Over the years, the U. S. auto industry's market has been experiencing fluctuations due to many reasons including: price, quality and foreign competition. General Motors Corporation (GM) which had been the leading car and truck manufacturer had been experiencing declining market share and facing stiff competition from both U.S manufacturers and foreign imports such as the Asian auto producers that included Toyota, Honda and Nissan. The main reason for increased foreign competition was that foreign cars were more fuel efficient, smaller, less expensive, and often more reliable than their American counterparts.
By the help of the global marketing, a business is able to target customers from worldwide and so can their suppliers. With the help of website, the business can also able to advertise (providing and selling) which can offer extra income stream for organization.
The Chinese automobile market has grown by 1/3. This means that there is a lot more room for automobile companies like Honda to expand and grow. Honda will be able to increase its production and sales as the market will be bigger.