Through creating assembly lines of the different companies, GM has managed to reduce costs of operation reducing the prices of the final products.
Despite the success of the strategies employed by the companies, the major threat to the profitability and competitiveness for the companies is from Japan, namely, from Toyota and Nissan companies which produce products at affordable cost making the cars a preferred choice for consumers in developing economies. However, the competitive strategies of the two companies vary significantly based on the focus of the company and the need for change (Allen, 2010, p. 56). The General Motors has focused on the production of high quality vehicles such as the jaguars and the acquisition of the Chrysler brand, which targets the higher echelons in the society (Shaw, 2011, p.111).
General Motors corporate culture is based on the principles of simplicity, agility and action. Accountability for every member of the team is also an aspect that has been taken into consideration when developing the corporate culture. The company demands results from every employee with the main objective of the company being to create excellence. To achieve the sought success, the company has engaged the employees in analyzing the success of the brands of the company. Additionally, the company has engaged in the production of fewer brands in order to monitor the success of each brand (Kapferer, 2008, p. 77). Resource allocation has been increased in order to facilitate the production speeds of the company. Improvements are based on change in efficiency and investment in technological advancement. The corporate culture of the company also takes into consideration the various approaches in encouraging personal development. Personal development is facilitated through the transfer of personnel to other production lines, with the main focus of the company being on gaining experience by the employees, on the various brands