General Motors Strategy Proposal

B.L.U.F.

  • Proposed Strategy: GM will differentiate themselves by providing the Chinese market with an American made truck under the Baojun brand.
  • This Proposal will: Capitalize on the increased desire for American made trucks in China by utilizing GM's core competency of having local market access in China.
  • NPV: 1,476 billion
  • IRR: 23%

Current Industry Climate 

  • The U.S. is the main source of revenue currently for GM.
  • Expected sales in U.S. will be decreasing as ride-share programs gain popularity and the market demand shifts to Eco-sustainable practices.
  • China recently removed their pickup truck ban on local roads in 4 providence's.
  • Due to increase TV and internet usage in China the American made truck is becoming a desired automobile.

Implementing Strategy

Short Term 

What/When

Taking the U.S. Chevy Canyon and putting it under the Baojun brand in China for 2017.

Why

To increase revenue and market share internationally. While providing for China's needs with an affordable American truck.

How

  • The Chinese manufacturing plant will undergo a tool refreshing.
  • Advertising will begin while the Trucks undergo manufacturing process.

Long Term

  • Introduce more GM truck models into the Chinese Industry.
  • Diversify where profit is being obtained from.
  • Strengthen GM's local brand Baojun in rural markets.

Ratios 

Long Term Objectives 

  • To increase revenue from the China region by 45% in the first 5 years.
  • To decrease the tight profit margins currently experienced within China by introducing the truck at the same price point in America with the possibility of introducing more truck options.

Questions 

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