Key Strategies of General Motors

General Motors

Introduction of General Motors

There must be a strategy or plan in place for a business to be successful or to be a successful business. They can develop and remain relevant throughout their stay thanks to this strategy. Having a strategy is the only way for a corporate business to remain relevant to all of its rivals.

General Motors is a company that owns different car brands and so it is well-known. It has its main office in the United States, Detroit to be precise. Besides the office in Detroit, the company also has offices in more than 120 countries, which allows the office to expand and grow over the years. General Motors has dealers and consumers to that it sells its products.

By expanding the company’s business, General Motors can work independently and build a history for itself. The company currently has a wide range of brands which includes Chevy, Buick, GMC trucks, etc. The reason for all this is that they want to provide customers with the best products that they can offer. Rubenstein, notes that the market for car sales is very competitive because of the number of bigshot companies that are in it and the struggle for customers. While the competition is happening, the companies need to do enough upgrades on their car parts, including computer engineering and technology to help with the day-to-day lives of the customers.

The most important strategies that are used by GM are in this article. What distinguishes it from competitors and how relevant has the company been since it was established? Without delay, let’s look at the most important strategies that are used by General Motors.

Strategy Methods Used by General Motors

Porter’s model is the most prominent model of strategy that is used by General Motors. The model of strategy is known as a competitive advantage in the automotive market. According to Porter, companies enjoy what is called a competitive advantage, this advantage helps the company to create a comprehensive strategy which enables them to focus on their target market.

The usefulness of the competitive advantage is also to foster a growth strategy. For the company to grow, it has properly implemented an all-targeted strategy. The company’s strategies have helped them to expand greatly. This suggests that the focus strategy has a greater impact on business growth and a better fit with the target market in the automotive and related products market than other focus strategies. General Motors’ capacity to address competition-related issues will have a direct impact on this strategy’s overall performance. An organization’s expansion and development are greatly influenced by significant external factors.

According to Porter’s strategy, the competition in the car maker industry has helped the industry to greatly improve. As a result, the strategy as a whole must take into account both the requirements of the organization and the environment outside of business.

Cost leadership is another competitive strategy that is used by General Motors. With the use of Porter’s model, the company can produce low product prices at low costs. Benz and some other car companies are more expensive than General Motors Corporation produced cars, and this makes up for the competitive advantage. The total plan of the strategy is to support the company’s competitive advantage by increasing the process of manufacturing through the improvement of their products.

 Also, through research and development, General Motors Corporation can develop very good products which it uses to improve its strategies. The products have features which make them different from the other existing car-making company products. Cost leadership is a very important strategy employed by the company besides the research and development means. Cost leadership together with a common differentiation strategy gives the company a brand, image, and even quality.

Main Strategies Used by General Motors

The following are the main strategies that are used by GM for its growth and development.

1.   Market Penetration

The company aims at growth by applying the market penetration strategy. Intending to increase its sales in the market, General Motors can expand its business in different regions. For example, to expand its market penetration, the company tries as much as to expand the dealers in different regions. This is a form of distribution that helps the company to reach consumers quickly and easily. Thanks to the cost leadership, and their products being relatively lower than their rivals, the company can successfully penetrate the market. Customers love it when they can purchase great products at good prices and this is what GM is offering to them. This is a strategy that is called aggressive growth or expansion strategy.

2.   Product Development

The second strategy that is being used by the company is product development. There’s nothing the customers love more than the product they love to be improved. Over time, General Motors continues to produce new models of cars. Some improvements are made to the products, like a better break, better interior, better headlights, and finer outer body, which are all attractive to their customers. This proactive strategy makes the company different from any common strategy. Through what is known as a high rate of innovation, new designs and features are being manufactured by the company.

3.   Market Development

For any company to grow, it must understand that they need to expand its market reach. Being confined to just a single market is not a good strategy that any business should employ. Over the years, besides the production of cars, General Motors have expanded in making trucks and even trying out other niches like aircraft. The company also did not restrict its market to the US clients alone, there are other branches in Australia, Africa, Germany, the UK, etc. and there are clients in these different parts of the world. Taking their business outside the US is a good move as it has continued to help the company grow for years now.

4.   Customer Value

Another aspect that GM tries to focus on is customer value. The company knows that without the customers, the company will seize to operate, which is why its customers are its number one priority. The reason why General Motors releases or produces different versions or models of cars is so that they can satisfy the customers. Not only are they just producing but they also make sure that they make improvements in their products also aimed to satisfy their different customers. The company also produces different vehicles knowing fully well they must create a vehicle for each of their customer’s pockets. This helps the company to continue to grow seeing that the customer value understanding is key.

5.   Diversifying Products

Diversification is another growth strategy that helps the company to remain vigilant today. To diversify its products, GM can enter into new markets. The company does not only produce cars for direct sales to the customers, they also make distributions to dealers to give their cars out for lease. By diversifying its products, GM does not only produce a particular type of product, which is why there are different models and brands. There are over 5 brands and they are all top cars that are used by the public.

Conclusion

gm has continued to maintain its position as the worlds leading car manufacturer ever since it was established in 1908 other well-known international automakers such as Ford and Toyota compete with the company operates under a variety of brand names including chevy Cadillac and Buick and is proud of its strong market recognition gms business strategy places importance on new ideas plus the company prioritizes specific expenditures for rd initiatives additionally the business has implemented an integrated market strategy in which it concentrates primarily on its core brands and divests and ceases operations of other less successful businesses