Situation Analysis (Marketing Reserch) - Essay Example

Like any large American company, GM has also diversified its operations to include strategic partnerships with other companies and has a part in making electronic components for aircraft as well as various parts for other equipment. GM’s core product is the manufacturing of automobiles. These products are divided into several divisions that have different brand names, each designed to appeal to a different demographic part of the market. For example, the company produces both the Chevrolet and Cadillac lines.

Chevrolet vehicles are designed for the market segment that wants basic and affordable transportation. The Cadillac line, however, is made for the high-end consumer who wants performance or prestige and doesn’t mind paying much higher prices for a vehicle. The company also has products in many different countries that are specifically designed for the customers who live there. Industry Trends. The automotive industry is highly competitive, and requires GM to constantly consider what the customers want and how to efficiently provide for the demands in the market.

One of the major trends in the automotive industry is the fragmentation of the market, due to competition from other manufacturers outside the country. This has required a change in the location of production plants. GM and other automakers used to follow production concept called the “regional branch concept” where, because automobiles are “bulky products fabricated from thousands of parts, automobiles were assembled as close as possible to consumers in order to minimize aggregate freight costs” (Rubenstein 137).

Now, given the changes in the market, they employ a more centralized procedure that considers the primary consumer of that particular brand and build production plants in places that allow easy delivery to several markets. Another major trend in the industry is the move to hybrid vehicles. As