General Motors Group 19

Kajia Herbert, Andrea Johnson, Christiana Lamont, and Mengyuan Yang


Our strategy is to expand internationally into the ride sharing market through a partnership with Chinese company Didi Chuxing.

Internal Analysis


  • $500 million dollar investment in Lyft
  • Vehicle sales in China have increased 7.1%


  • Faced numerous business challenges internationally
  • 7.6% decrease in revenue in South America

External Analysis


  • Increased demand for ride sharing
  • Technology advancements are pointing towards autonomous cars


  • Toyota and Uber Partnership
  • Increased life cycle of cars

Key Success Factors

  • Access to automated manufacturing technology
  • Adoption of Eco-friendly manufacturing practices
  • Focus on research and development

Strategic Choice

  • Positions GM for the shift in consumer demand to ride sharing
  • Coincides with GM's long-term objectives to develop alternative ways to sell cars
  • Provides an entry into high growth market

Didi Chuxing

  • 87% market share for ride sharing
  • 300 million users, 14 million drivers
  • Operates in 400 cities in China

Strategic Financial Information

  • This project will cost $80 million, based on data from the Toyota and Uber partnership
  • Increase earnings per share, EBIT, ROA and ROE
  • NPV is $18.6 million
  • IRR is 16%
  • Revenue will be generated through sale of vehicles and leasing through GM financial


  • Launch into 5 cities
  • Drivers can pay for the lease with their earnings directly from Didi
  • Select types of cars are offered

New Strategy Outlook

Is This a Good Fit?

  • Aligns with the company's vision statement
  • Already seen success in similar program domestically

Is the Company Better Off?

  • Provides the opportunity to expand into new markets internationally
  • Long-term objectives will be met
Thank you!

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