There are three major competitors in the auto industry that GM is competing with. GM is a market leader in the industry.
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In line with the growth of e-commerce, the corporation has built its site from which customer can access all the needed information about the operation of the corporation. The corporation site is the main communication centre between the corporation and other stakeholders. Macro-level market (Industry) analysis The auto industry in the whole world is in its mature stage. This marketing research data from the industry shows that the industry has been making impressive growth in the US economy. The total auto market is valued at about $1Trillion.
This is a huge overall turnover which is equal to that of established markets. Most the new and modern auto brands are used mostly in the urban areas. The urban market constitutes about 73 percent of the total market. This is a skewed market share compared to the rural market which accounts for about 27% of the total market. This market data shows that the rural market has not been well tapped into. With more than 30 percent of the Americans living in the rural areas, it means that there is a high potential in the urban market
However, the GM corporation brands have recorded the highest market growth rate recording about 23 percent growth rate. This is a higher growth rate compared to other markets in the world. (General Motors, 2007) Final Phase Strategies The General Motors (GM) strategy is the most important factor that ensures the successes of the company in the market. The way the company introduces its products in the market and the consequent efforts to which ensures the growth of its products is very important.
The GM’s strategy uses the Ansoff Matrix for the penetration and its existence in the market and to ensure the growth of its products in the market. In market penetration, the company seeks to sell its new models in the existing market. This forms the base for the introduction of the new model in the market since they are marketed among the segment that is already using the GM’s products. This will be achieved through strategies like low pricing strategies and advertising in mass media.
This will also help the company to secure dominance in the growth market. The pricing and advertising strategy will be aimed at creating a competitive advantage and take the product over its competitors. These strategies are aimed at increasing the competitiveness of its products in the market and the new products that might be introduced in the market. This strategy will then be followed by market development strategy which will be aimed at crating and selling the GM’s products in new market. This strategy will include sourcing for new markets. (Vincent, 2004)
The GM is already selling its brands in more than 200 countries and therefore the company will just need to introduce its new brands in the already established market. This will be in the same line with product development where the company will be able to introduce the new models in the market. After introduction of the new product in the market, Brand growth will be the next important thing in the marketing strategy. Brand name development is important in the overall growth strategy for the company. Read also emerging business opportunities at IBM case analysis
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The name of the service was chosen after an extensive market research carried out in US. Using the focused target groups, the company carried out an extensive research before coming up with its brands names. The GM strategy will be aiming at creating a products brand personality which will be developing in line with the characteristics of the target market. For the GM’s dream, the most important key elements will be the way it will appeal to the executive members who are seeking style, confidence, sophistication and element of self-assurance in their lifestyles (General Motors, 2007)
The main aim of the GM strategy is to ensure that it creates a brand name in the market. Creating brand personality will be the main objective of the strategy. The brand personality described the characteristics of the brand in relation to the target market of the product. Brand personality is important as it will help the marketer to develop the mapping that will successfully introduce the brand to the market
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