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Marketing Channels and Logistics - Case Study Example

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Summary
aturn wa created a an independent ubidiary of General Motor in order to face the riing competition in the American mall car market from the Japanee companie. It wa GM' firt new car diviion ince Chevrolet. Thi "clean heet" approach wa intended to match the Japanee car manufacture in term of efficient manufacturing practice and employee involvement in the proce…
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Marketing Channels and Logistics
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Download file to see previous pages Apart from being technologically uperior to the exiting American car in the egment and on par with the Japanee verion, it wa deigned to offer the amenitie and tyling of an expenive car at a lower price. The built-in value propoition would be value a perceived by it buyer.
The timing of aturn' launch alo gave it a fillip, a the economy wa coming out of a receion, when 'value' wa conidered to be everything by the American conumer and the need for an all-American car to be pitted againt foreign make, epecially the Japanee wa widely felt. (Barabba, 2004, 55-109)
aturn laid the mot tre on cutomer atifaction. They focued on the cutomer a an individual and their relationhip with their car. The retailer were aked to let the cutomer pend time alone with their car. They made ure that their franchiee were excluive aturn dealer and the howroom were built to pecification provided by the company. Thi enabled the cutomer enjoy the "experience" of buying a car and trike an immediate rapport with the dealer. Their pot-ale ervice experience wa alo a key factor. They developed a feeling of "family" between owner, dealer, and the company. (Barabba, 2004, 55-109)
ince the early 1980', General Motor' ale hare in the U.. ...
A part of their partnerhip approach GM drew the entire company together - management, worker, dealer and union- and created a 'college' tyle, flat working environment forming the Group of 99 which wa reponible for developing the manufacturing proce and the product of the aturn Corporation. Thi approach gave the labor union a better ay at aturn than they had previouly at General Motor.
Thi tructure, rather the lack of it helped build a unique brand identity becaue all the key player became engineer of the brand and thi involvement and enthuiam wa tranferred to the cutomer. (Barabba, 2004, 55-109)
The GM Company made ue of the new partnerhip agreement to reet union guideline and reduce the price of the final product, a the additional labor cot were not tranferred to the conumer a with the old guideline.
The aturn worker' profit haring wa tied to performance of the aturn Company only. Thi increaed the ownerhip and ene of belonging greatly.
Initially GM ued an organizational tructure with independent department. Each department worked independently and toed the idea 'over the wall' to the next department. Thi lowed down the entire proce and extended the time needed to develop new product. tringent time contraint for aturn meant that uch a tructure would be diatrou. (Barabba, 2004, 55-109)
To over come thi, concurrent engineering wa ued in the development of aturn. Thi involved multifunctional team which meant there wa greater undertanding of the problem and alo problem olving wa fater. A upply chain i a network of facilitie and ditribution option that perform the function of procurement of material, tranformation of thee material into intermediate and finihed product, and the ditribution of thee finihed product to cutomer. upply chain exit ...Download file to see next pagesRead More
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