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Economic/Competitive Strategy Analysis for General Motors Company

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Economic/Competitive Strategy Analysis for General Motors Company
Economic/Competitive Strategy Analysis
For
General Motors Company

Group #2: Roberto Paternina, Luvy Garcia, Ruperto Granthon, Camilla Valdez, George Leal, Eric Reeves, and Rafael Franjul
June 16, 2012
Introductory description of the business, its goals, and its markets
General Motors Company is an American car manufacturing company that sold 9 million vehicles, delivered USD 135M in revenue and USD 6.1 M profit in FY11. The company was founded in Flint, Michigan more than 100 years ago. Today, General Motors is the world’s largest automotive company with operations in more than 120 countries. It has a network of 4,500 dealers globally which deliver 70 percent of its sales from outside the U.S. mainly from four markets: China, Brazil, UK, and Germany. The auto manufacturer produces under the following brands: Chevrolet, Buick, GMC, Cadillac, Baojun, Holden, Isuzu, Jiefang, Opel, Vauxhall and Wuling. They also have equity stakes in joint ventures in China including SAIC-GM, SAIC-GM-Wuling, FAW-GM and GM Korea.
Along its history, the company has had important milestones worth mentioning. It started with only one brand: Buick and would buy more than 20 additional ones during its development process. Since the beginning, the company was focused on breakthrough innovation and design that started in the 70’s with engines that could run on low-lead or unleaded gasoline, the air bag and the first steps into reducing emissions. By the 1980’s the company made great efforts to become a global enterprise, it included signatures brands like Hummer into its portfolio and even partnered with Toyota. However, since the early 70’s Asian car manufacturers started developing and by the 90’s Japanese, German, and Korean manufacturers took the lead in most passenger car segments. By the turn of the century, GM had consolidated strongly in emerging markets like China and Brazil as it continued its legacy of innovation with hybrid systems. In 2008 GM filed

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