General Motors Group 19

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

Strategy

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

Internal Analysis

Strengths

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

Weaknesses

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

External Analysis

Opportunities

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

Threats

  • 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

Implementation

  • 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!

Report Abuse

If you feel that this video content violates the Adobe Terms of Use, you may report this content by filling out this quick form.

To report a Copyright Violation, please follow Section 17 in the Terms of Use.