Saturn Case Analysis
Case: _____Saturn_____
Case Abstract Form
_____ Problem Statement:
Saturn's sales are down, and market share needs to be increased. Also, the product line is too narrow. Current advertising is targeting the younger population, but the average age of a Saturn buyer is 43. Saturn's initial focus on employee relationships seems to be fading as demonstrated with the clash between GM designers in Europe and the U.S. on the L-Series car. In addition, overall styling of the vehicles needs to be addressed.
_____ Key drivers of change in the industry (e.g., driving forces):
The trend in vehicles has moved towards larger sedans and SUV's, and the ones who are purchasing smaller vehicles are looking for cars more sporty than the models Saturn offers.
_____ Competitor Strength Assessment (Competitor strengths & weaknesses, primary strategies of each competitor (e.g. low cost leader, focused differentiation, prospector, reactor, etc.), Porter's 5-forces assessment):
Hyundai- cost leadership strategy, breadth of product line is low
Kia- cost leadership strategy, breadth of product line is low
Ferrari- differentiation strategy, very high price, breadth of product line is low.
Lamborghini- differentiation strategy, very high price, breadth of product line is low
Porsche- differentiation strategy, high price, breadth of product line is low.
Mercedes- differentiation strategy, high price, breadth of product line is moderate
BMW- differentiation strategy, high price, breadth of product line is moderate, known for their cars being in the shop constantly and high maintenance bills.
Toyota- focused differentiation, medium pricing, breadth of product line is low. Company is known for quality products, and nice styling.
Ford- focused differentiation, medium pricing, breadth of product line is high. A strength is their pick-up truck market share, a weakness is perceived reliability and styling on some of the lines.
GM- focused differentiation,
Case Abstract Form
_____ Problem Statement:
Saturn's sales are down, and market share needs to be increased. Also, the product line is too narrow. Current advertising is targeting the younger population, but the average age of a Saturn buyer is 43. Saturn's initial focus on employee relationships seems to be fading as demonstrated with the clash between GM designers in Europe and the U.S. on the L-Series car. In addition, overall styling of the vehicles needs to be addressed.
_____ Key drivers of change in the industry (e.g., driving forces):
The trend in vehicles has moved towards larger sedans and SUV's, and the ones who are purchasing smaller vehicles are looking for cars more sporty than the models Saturn offers.
_____ Competitor Strength Assessment (Competitor strengths & weaknesses, primary strategies of each competitor (e.g. low cost leader, focused differentiation, prospector, reactor, etc.), Porter's 5-forces assessment):
Hyundai- cost leadership strategy, breadth of product line is low
Kia- cost leadership strategy, breadth of product line is low
Ferrari- differentiation strategy, very high price, breadth of product line is low.
Lamborghini- differentiation strategy, very high price, breadth of product line is low
Porsche- differentiation strategy, high price, breadth of product line is low.
Mercedes- differentiation strategy, high price, breadth of product line is moderate
BMW- differentiation strategy, high price, breadth of product line is moderate, known for their cars being in the shop constantly and high maintenance bills.
Toyota- focused differentiation, medium pricing, breadth of product line is low. Company is known for quality products, and nice styling.
Ford- focused differentiation, medium pricing, breadth of product line is high. A strength is their pick-up truck market share, a weakness is perceived reliability and styling on some of the lines.
GM- focused differentiation,