General Motor Marketing Strategy

1A. Strategic Issues

First of all, how does GM reduce its cost while gaining efficiency and productivity? Stop losing revenue is one of the first things to do while it was GM’s sixth straight quarterly loss. Generally, reducing cost in every level of a company would affect the productivity and efficiency. Thus, reducing costs become a crucial movement to save its financial problem. Second, how does GM increase sales when facing falling prices, rising health-care cost, and higher fuel prices? Consumers become more conservative when using money in a bad economy condition. It would be a hard assignment for GM to increase sales in such a downturn. Marketing strategies would need to be studied carefully in order to regain the customers. Third, how does GM appeal consumers who may not have considered a GM brand in the past? To regain and expand its customer base is also an important issue for GM. To appeal those who have not considered a GM brand in the past is a great chance to expand the market share.

1B. The relevant determinants of strategic options

GM’s insufficiency of financial resources and inability to adjust structural costs has led the company to an operation crisis. The company is losing revenue, and its inability to improve it right away has injured the financial problem in to a more serious level. Any of a company’s business strategies would succeed or fail, but GM’s financial status makes it vulnerable to fierce competition from Ford, Honda, Nissan, and Toyota Motor and hard to implement its business strategies.

1C. KSFs prior to 2000

First, high brand awareness. GM is a brand that can be easily recognized. Second, large scale. GM was the world’s biggest automaker which produced quality cars. Third, good economy condition. The economy prior to 2000 was good. Generally, cars were affordable to most customers.

KSFs in 2006

First, oversea businesses. GM was the No.1 car manufacturer in China, the world’s fastest-growing market. The growing...