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. This shift in brand strategy is targeted in "building sales, cutting costs, and bolstering brand identity (Garsten 2005)."
For Chevrolet and Cadillac, GM is planning to maintain its present strategy of making them high volume brands that offers vehicle in every major segment by having a broad product line up. Buick, Pontiac and GMC will be combined into a single sales channel which offers trucks, premium and near-luxury vehicles and performance models. In addition, these product lines will be trimmed as GM plans to drop some models in this category. Saab is seen to offer exclusive European styled and engineered sedans, crossover and SUV models. HUMMER will continue to manufacture exclusive, premium SUVs and trucks. Lastly, Saturn will be upgraded as this division will offer more upscale models which are styled and engineered to European standards. This product line will be slotted between Chevrolet and Buick (Garsten 2005).
Complementing these marketing strategies are three global technology strategies: offering technology which has a real impact and is valued by customer; technology which meets basic objectives of cutting costs to offer competitive prices; and sustainable technology which improves vehicle emissions and fuel economy (GM Global Technology Strategy 2004).
Armed with these strategies, GM is geared to conquer the global market in the next decade.
Currently, General Motors Corporation (GM) leads the automotive industry with total revenue of US$192.60 billion during 2005. This is amidst the US$2.6 billion loses incurred during the same year which is due to the weak demand in the North America. Following GM is Ford Motor Corporation (US$178.10 billion), Daimler Chrysler AG (US$177.37billion), and Toyota Motor Corporation (US$162.92 billion). Even though smaller in terms of revenue, it is notable that Toyota recorded the largest net income at US$10.61 billion during 2005 (Yahoo Finance 2006).
It is apparent that there is an intense competition between the four largest players
General Motors Corporation is involved in the design, manufacture, and marketing of cars and light trucks worldwide. The company was founded in 1908 and is headquartered in Detroit, Michigan. GM also has partnerships with Fiat Auto SpA of Italy; DaimlerChrysler AG of Germany; and Fuji Heavy Industries, Ltd., Isuzu Motors, Ltd., and Suzuki Motor Corp…
This paper presents brief report on the management strategy of Toyota Motor Corporation and gives detailed analysis of both the internal as well as external environments. In order to analyze the business environments, various business analysis tools such as SWOT and PESTEL analysis will be included in the paper.
The purpose for conducting a SWOT analysis in any business organization or firm is to find out the goals and objectives of the same. Every business must have a certain aim that it wishes to achieve by the end of every annual year, and thus conducting a SWOT analysis helps the business to grow and develop with respect to overcoming any kind of hurdles that come in between.
The Toyota is the world’s largest automobile manufacturer in terms of sales and production. According to Pearce II and Robinson, organizational culture stands for a set of important assumptions that a firm’s members share in common (lecture note). The Toyota’s organizational structure facilitates effective strategy implementation.
Evidently, the business model of Toyota for the new era is to provide ultimate user experience through its new relationships while realising that, high-quality services would maximise customer satisfactions and thereby the profitability (Toyota Motor Corporation, 2010).
The purpose behind the establishment of any business organization is mainly to make profits and earn maximum customer recognition. Before entering a market, business organizations must identify the forces operating in that particular market, which encompasses the behavior of the targeted customers, strength of other dealers and possible challenges in that specific market.
In relation to the study the company which has been selected is Toyota Motor Corporation, a renowned Japanese automobile company. The automobile giant having its headquarters in Toyota, Aichi, Japan, was established by Kiichiro Toyoda in the year of 1937. Toyota entered USA market by doing a joint venture with General Motors in the year 1984.
While the United States languishes from the 2008 financial crisis and the European Union battles credit crunch issues that threaten to undermine the whole continent, several countries have been posting tremendous economic growth especially China, India, Indonesia, Latin American countries and South Africa.
One of the industries that have attracted quite a number of firms is the motor vehicle industry. This is based by the increased demand for motor vehicles not only in the emerging market but also by the consumers in the developed countries. Similarly, the demand for eco friendly automobiles has gone up in the international market thus calling for the manufacturers to emulate modern technology to produce brands that have lees impact on the environment.
The flow of communication in all directions establishes harmony in operations besides keeping the stakeholders and other related resources up to date, to achieve the organizational objectives, which reflects Toyota’s global image, brand recognition and reputation.