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Helena Boe, Diane Ketler, Nicole OKeefe, Andrew Rubenstein & James Siverio.

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Presentation on theme: "Helena Boe, Diane Ketler, Nicole OKeefe, Andrew Rubenstein & James Siverio."— Presentation transcript:

1 Helena Boe, Diane Ketler, Nicole OKeefe, Andrew Rubenstein & James Siverio

2 Core Brands:Core Brands: Non-US Brands: European-(German)European-(British )AustralianSouth Korean

3 2010 1927 GM founded 1908 Took over Buick, Pontiac, Cadillac Market share peaked in 1960 at 48.3% Was leader of global auto sales for 77 years

4 Avoid Bankruptcy Obama Administration gave GM 60 days to restructure GM has until June 1 st to turn itself around

5 Gross Domestic Product (6.29)% Inflation Rate (0.62)% Unemployment Rate 8.9%

6 US Auto industry dominated by five firms Mature Industry Consumers looking for green / more fuel-efficient cars

7 Product Differentiator A car for every purse and purpose Worked from 1931-2008 Largest Auto Maker Foreign Entrants Toyota takes title Problem: Too many brands to manage

8 Entry Generally low High barriers for new firms Buyers High level of control over dealers Current downsizing Substitutes Effects of increased fuel prices Green movement Consumer disposable income Public Transportation Revenue Growth Rate

9 Suppliers Three-tiered supply chain Highly intricate relationships Heavy reliance on suppliers Changing Consumer Trends Trend away from trucks & SUVs Economic downturn and rising fuel prices Rivalry Direct vs. Indirect Competition High costs of production Diversified products

10 Bush Plan Obama Plan: March 30 th GM not viable to succeed Restructuring (60 Days): Get rid of CEO, Jobs, Plants, Brands Government Intervention: 55% Stake in GM Warranties Incentive program June 1 st : Restructure or

11 Change strategy from product differentiator Take advantage of… Mandated restructuring to turn GM around Build a smaller, stronger GM with governments help 1 Consumer tastes shifting towards fuel efficient cars Produce hybrids/electric cars/crossovers 2

12 1. Focus on core brands 2. Invest in new technology Efficient Production Hybrids Electric Cars 3. Focus on customer needs and wants 4. Be more flexible in the future to changing demands


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