No Marshmallows, Just Term Papers
Managerial Economics 640
May 23, 2011
Being the strongest competitor in an industry is becoming more difficult considering technology advances occur daily. Most industries in business experience a decline in sales or commerce because other people or organizations become relevant competitors by generating new, more effective or creative products. Vehicles produced in the United States used to be the ideal choice many years ago for most American consumers. Remaining a strong competitor may be difficult if a once successful company no longer offers new, high quality products to attract consumers.
When the competitor comes into an industry, understanding the best price and product, providing high quality is an effective method to become a major key player in business. Competition is fierce in the automotive industry. Once successful companies are currently experiencing major financial trouble and losing consumer interest. General Motors (GM) is an U.S. automobile company experiencing financial turmoil. The company recently filed bankruptcy and in the process of becoming more competitive in today’s market. Using techniques such as target costing, increasing quality initiatives and limiting manufacturing issues may help the organization achieve gaining consumer interest and trust.
GM became an organization in 1908 (GM, 2009). The company experienced much success and turmoil since then. There was a time when people in the U.S. loved and valued the GM brand. In the early 40’s, approximately forty-four percent of all U.S. auto sales were GM brand (CNN, 2009). Some of the brands with the GM name include Buick, Chevrolet, Cadillac, GMC, Pontiac, and Saab. The organization started seeing a decline in sales in the early 90’s. GM reported annual losses totaling $30 billion from 1990 to 1992 (CNN, 2009). When the loss occurred, people loss their jobs (as plants were closed) but not as severe as the current...