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Competitive Advantages and Strategies of General Motors

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Clint Whalen

on 15 July 2014

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Transcript of Competitive Advantages and Strategies of General Motors

General Motors Advantages
Sells and services vehicles in following brands: Baojun, Buick, Cadillac, Chevrolet, GMC, Holden, Jiefang, Opel, Vauxhall, and Wuling
Strong presence in USA and China
In top 3 largest manufacturers
GM Strategy
Apply technology (9 million vehicles currently)
Manufacture at a lower cost
Better R & D for estimated $8 billion per year (Lowry, 2014)
Gain more market share and global persence
GM Corporate Strategy
"At GM, we are focused on a single global vision: To design, build and sell the world’s best vehicles. This powers the development of world-class products that are winning in the marketplace, and is helping to transform our business and fortify our balance sheet" (Powerful Vision, Powerful Strategy).
Competitive Advantages
Gives a company a lead or gain over competitors
Porter's Competitive Strategy
Should we [company] compete on the basis of lower cost ( and thus price), or should we differentiate our products or services on some basis other than cost, such as quality or service?
Should we compete head to head with our major competitors for the biggest but most sought-after share of the market, or should we focus on a niche in which we can satisfy a less sought-after but also profitable segment of the market?
1. Identify and classify resources in terms of strengths and weaknesses
2. Combine the firm's strengths into specific capabilities and core competencies
3. Appraise profit potential- Are there any distinctive competencies?
4. Select the strategy the best exploits the firm's capabilities relative to external opportunities
5. Identify resource gaps and invest in upgrading weaknesses
(Hunger & Wheelen, 2010, "Internal Scanning : Organizational Analysis")
Advantages continued,

General Motors Foundation
Buick Archievers Scholarship Program
Student Corps
Vision/Business Model
Global perspective
Competitive Advantages and Strategies of General Motors
By Clint Whalen
General Motors Strategic Plan

Using Resources to Gain Competitive Advantages
Lower cost strategy: ability of a company or a business unit to design, produce, and market a comparable product more efficiently than its competitors.
Differentiation strategy: ability of a company to provide unique and superior value to the buyer in terms of product quality, special features, or after-sale service.
Cost leadership
Cost focus
Differentiation focus
(General Motors, 2014)
What's next for GM?
Market share
Stay in top 3 domestically
Community Involvement/Social Responsibility
Hunger, J.D., & Wheelen, T. (2010).
in Strategic Management and Business Policy Achieving Sustainability
(12th ed.) Retrieved from the University of Phoenix eBook.

General Motors . (2014). Investors:
Corporate Strategy . Retrieved from http://www.gm.com/company/investors/corporate-strategy.html

Lowry, W. (2014). A must-know investor's
guide to General Motors Company (GM). General Motors . Retrieved from http://marketrealist.com/2014/05/must-know-investors-guide-general-motors-company-gm/

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