Maven Expanding the revolution

The Grand Strategy

General Motors expands Maven car-sharing services from the current 16 cities to 40 cities nationwide. After 4 years, the company can expand to 120 cities nationwide and internationally to China.

Why the Car-Sharing Market?

  • The Car-Sharing market has grown 25.9% from 2011-2016
  • Car sales have hit a plateau in the U.S. market
  • The millennial generation shows less desire for personal car ownership

The Future of the Market

  • Industry projected to grow at an annualized rate of 9.2% over the next five years to 2021
  • Industry revenue projected to be 1.6 billion by 2021
  • Profit margins continue to rise as entry costs decline

The Next Big Step for General Motors

  • Market Development of Maven
  • Cities chosen for high potential
  • Setting up strong platform for fully autonomous vehicles

So What's the Cost?

  • Initital Year
  • Vehicle: $15,707,844
  • Parking: $124,800,000
  • Advertising: $166,800,000
  • Employees: $317,200

Total: $307,625,044

Financial Analysis

  • Additional Annual Dividend
  • Year 1: $.086
  • Year 2: $.035
  • Year 3: $.045
  • Year 4: $.057
  • 5 Year NPV: $114,900,000
  • IRR: 18%

The Bottom Line

  • The market is changing and GM must adjust
  • This strategy has the potential to expand internationally
  • Proactivity is the key

Expand The Revolution

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