PPT ON STRETEGY & GLOBAL MARKETING OF GENERAL MOTOR

PRESENTED BY :SHAMSHAD M. LALAN KR. MISHRA

STRATEGIES ADOPTED BY GM The determination of the long run goals and objectives of an enterprise, the adoption of courses of action and the allocation of resources necessary for carrying out these goals.

Levels of Strategy
CORPORATE STRATEGY CORPORATE HEAD OFFICE

BUSINESS STRATEGY

Division A

Division B

R&D
FUNCTIONAL STRATEGIES

R&D Personnel Finance Production Marketing/Sales

Personnel Finance Production Marketing/Sales

Levels of Strategy
Corporate strategy... defines the scope of the business in terms of the industries and markets in which it competes. includes decisions about diversification, vertical integration, acquisitions, new ventures, divestments, allocation of scarce resources between business units Business strategy... is concerned with how the firm competes within a particular industry or market... to win a business unit must adopt a strategy that establishes a competitive advantage over its rivals. Functional strategy... the detailed deployment of resources at the operational level.

Strategic Analysis PEST Marketing Segmentation Five Force Model Competitor Analysis SWOT Analysis

The Structural Determinants of Competition

SUPPLIER POWER
Supplier concentration Relative bargaining power

THREAT OF ENTRY
Capital requirements Economies of scale Absolute cost advantage Product differentiation Access to distribution channels Legal/ regulatory barriers Retaliation

INDUSTRY RIVALRY
Concentration Diversity of competitors Product differentiation Excess capacity & exit barriers Cost conditions

SUBSTITUTE COMPETITION
Buyers propensity to substitute Relative prices & performance of substitutes

BUYER POWER
Buyers price sensitivity Relative bargaining power

Entry into Global Market by GM

Direct investment by opening subsidiary abroad Licensing/franchising wherein foreign enterprises are granted the right to use the exporting company s know-how, viz. patents, trade marks with or without financial investment Establishing joint ventures for manufacturing or marketing Offering consultancy services abroad Sub-contracting and counter-trade and Importing (for export production)

Driving Forces for GM to get into Global Mkt.

Driving forces
Technology Regional economic agreements: multilateral trade agreements NAFTA, GATT Market Needs and wants Transportation and communication improvements Product development costs Quality World economic trends Leverage: experience transfers, scale economies, resource utilization, and global strategy. The global/transnational corporation Economic of Scale World Operation capabilities

Factors Influence to GM
Controllable factors in GM
The company is in position to control and design marketing mix elements e.g. product, price, place, and promotion but the environment is beyond the control of the company.

Uncontrollable factors
Social factors: Legal setup, political situations, financial system, culture etc. Economic factors: commercial policy variables e.g. tariffs, quotas, licensing Competition: with producers, exporters Logistics: costs of transportation, availability of transportation Risks: acts of enemies, pirates etc

General Motors Alliances with Competitors

SAAB FIAT
50% owned

SUZUKI

GM
ISUZU
40% investment 60% owned

FUJI

IBC Vehicles Ltd. (U.K.)

(Makes vans in UK)

50% owned

TOYOTA

50% owned

New United Motor Manufacturing Inc. (NUMMI)

(Makes cars in US)

DAEWOO