This paper "Strategies of General Motors and Toyota Motor Corporation" focuses on the global car industry is becoming a more competitive market as players continue to improve their operations in order to battle for larger shares. An essential feature of the more intense rivalry among competitors is their creation and implementation of different strategies in order to pursue their goals…
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Strategies are usually tailored to take advantage of the various opportunities in the firm's environment while harnessing its strengths and competencies.
Currently, General Motors Corporation (GM) leads the automotive industry with total revenue of US$192.60 billion during 2005. This is amidst the US$2.6 billion loses incurred during the same year which is due to the weak demand in North America. Following GM is Ford Motor Corporation (US$178.10 billion), Daimler Chrysler AG (US$177.37billion), and Toyota Motor Corporation (US$162.92 billion). Even though smaller in terms of revenue, it is notable that Toyota recorded the largest net income at US$10.61 billion during 2005 (Yahoo Finance 2006).
It is apparent that there is an intense competition between the four largest players in the industry. Toyota was able to dislodge the Ford during 2003 and is widely regarded to as having the aspirations to become the future industry leader next to GM. From here, we can see a struggle between the companies as they are both challenged to devise winning strategies. For GM, the challenge is to craft and implement an effective strategy to maintain its position in the global market, while for Toyota a strategy to battle head-on with GM and increasing its market share.
The company has a wide array of product line under the brands Chevrolet, Pontiac, GMC, Oldsmobile, Buick, Cadillac, Saturn, and HUMMER. The company's marketing arm is supported by retail dealers and distributors in the United States, Canada, and Mexico as well as dealers overseas. GM is recognized as the largest vehicle manufacturer selling 8.5 billion cars in 2001 while its sales in 2002 account for 15% of the trucks and vehicles sold globally (Yahoo Finance 2006).
Traditionally, GM's approach to marketing its products is targeting a specific market segment for a specific brand so that the company's products do not compete with each other. These were profitable for the automotive firm as the brand's shared components and common corporate management gave way to substantial economies of scale while the distinctions between the brands created an "orderly upgrade path." Before 1995, the company has a full range of products ranging from Chevrolet which is offered to an entry-level buyer who is more concerned on a more practical and economical vehicle to the upscale Cadillac which is targeted to the elite market as it is regarded as the "standard of luxury (General Motors 2006)."
Nevertheless, this strategy did not persist as the GM started to implement a gradual blurring of its divisions during 1995. This strategy leads to cannibalization in the market share of GM as each division competes with each other (General Motors 2006).
During 2004, the company has announced a new strategy for its product lines which is apart from the traditional marketing and positioning it employs. This shift in brand strategy is targeted at “building sales, cutting costs, and bolstering brand identity (Garsten 2005).”
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The Toyota is the world’s largest automobile manufacturer in terms of sales and production. According to Pearce II and Robinson, organizational culture stands for a set of important assumptions that a firm’s members share in common (lecture note). The Toyota’s organizational structure facilitates effective strategy implementation.
Some of the historical issues encountered by Toyota include a lagging product planning, a declining Japanese market share and a limited global expansion. Due to the impact of these different issues, the company has employed a number of strategies, towards ensuring its presence locally and internationally.
GM Motors manufactures and distributes a number of brands ranging from Chevrolet to Cadillac. Besides, the company conducts business with commercial fleet customers, governments, and leasing companies where it offers its
Since sub cultural differences are the main cause of employee dissatisfaction and consequential turnover, the management should strongly focus on finding a solution to the differences. Particularly, it is important to evaluate how they are beneficial to the company and how they adversely affect employees.
The analysis carried out in the study is to identify several factors. The factors include key factors analysis, key successful factors of the company, financial factors, quantitative and qualitative analysis based on objectives and
Born in Detroit Michigan in 1910 General engines has delivered a steady of vehicles, for example, Chevrolet, Pontiac Cadillac, and Buick which have ended up family unit names in the U.s. As being what is indicated, the General Motors Brand is decently established in America as well as all through the world.
The UAW has made, and continues to make, substantial concessions in regards to their rate of pay in an effort to compromise with management and contain costs during this period of economic uncertainty. Recent actions at GM have been responsible for additional savings, and they would like to get their labor costs down into the $50 range, only marginally higher than the $49 paid by Toyota and Honda, which are widely believed to be the gold standard for autoworker compensation packages.
Canada is another big centre of its facilities where GM operates through 20 locations. It is headquartered in Detroit, Michigan and employs about 335,000 people. The brands include Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, Hummer, Opel, Pontiac, Saab, Saturn and Vauxhall.
The automobile industry was always competitive. Moreover the globalization and other global happenings necessitated the companies to think beyond the traditional way of doing business. The change in overall structure of the organization based on the market structure can give better result.
This research will begin with the statement that most corporations utilize different means of attracting a larger customer base where one exists and encroaching new lands where none exists. To maintain a solid base of customers, different corporations devise means and ways of ensuring that their customer base remains undisturbed.
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