GM is recognized as the largest vehicle manufacturer selling 8.5 billion cars in 2001 while its sales in 2002 accounts for 15% of the trucks and vehicles sold globally (Yahoo Finance 2006).
Traditionally, GM's approach in marketing its products is targeting a specific market segment for a specific brand so that the company's products do not compete with each other. These was profitable for the automotive firm as the brand's shared components and common corporate management gave way to a substantial economies of scale while the distinctions between the brands created an "orderly upgrade path." Before 1995, the company has a full range of products ranging from Chevrolet which is offered to an entry level buyer who is more concerned on a more practical and economical vehicle to the upscale Cadillac which is targeted to the elite market as it is regarded as the "standard of luxury (General Motors 2006)." Nevertheless, this strategy did not persist as the GM started to implement a gradual blurring of its divisions during 1995. This strategy leads to cannibalization in the market share of GM as each division competes with each other (General Motors 2006).
During 2004, the company has announced a new strategy for its product lines which is apart from the traditional marketing and positioning it employs. ...Show more