General Motors Analysis

2612 words - 10 pages

GENERAL MOTORS ANALYSISI. Executive SummaryGeneral Motors, the world's largest vehicle manufacturer, designs, builds and markets cars and trucks worldwide, and has been the global automotive sales leader since 1931. General Motors Corporations is founded in 1908 and has its vehicles sold in more then 190 countries. GM has plans to launch into the China's sedan market with its new Daewoo's sedan 'Kalos' in March 2004. China is a giant market that is full of potential gauging from our Shanghai GM financial results. The increasing disposable incomes and China people thirst for luxury goods would push up the demand for the product. Potential competitions from are kept minimal due to different branding technique and the market is far from saturation. Market penetration pricing would be set for this luxury good made affordable and promotional activities would make an impact launch in China's major cities especially Beijing, Shanghai and Zhejiang where the people are having higher disposable income.II. Current Situationa. Company InformationGeneral Motors Corp. is the world's largest vehicles manufacturer. Founded in 1908, GM has been the global automotive sales leader since 1931, having 32 manufacturing operations in 32 countries and its vehicles sold in more then 190 countries. General Motors today reported net income of 901 million in the second quarter. GM Asia Pacific earned a record $163 million in the second quarter of 2003, more than four times the $39 million earned in the year-ago quarter. Strong financial results at Shanghai GM and GM's Australia-based Holden continued to drive improved financial results along with improved equity earnings from GM's Japanese automotive alliances and lower-than-expected start-up losses at GM Daewoo Auto & Technology Co. (GM, 2003)b. Products and ServicesThe purpose of this review is to deem the feasibility of the launch of GM Daewoo's Kalos into the China market, termed Project "redSEDAN". Kalos (See appendix 1 for detailed specifications), would come in 2 models, a 5-door and a 4-door model. Both contain state-of-the-art designs and technology which are spacious and cosy on the inside and boost fantastic performance. It is also a fuel-efficient clean car that will ensure savings on fuel and minimum harm to the environment. Available in 10 special color coating, there is sure to be one that will suit the preferences of consumer.GM Daewoo Kalos comes with 3 year warranty or a 100,000km factory-backed warranty whichever comes first. Also included is AA 24 hour Road Service with every new car sold. So when the unexpected does happen, help would be available 24 hours a day, 365 days a year, anywhere in the country. (Daewoo, 2003)III. External Environmenta. The EconomyChina, a highly developing country has joined World Trade Organization (WTO) on 2001 opening up a market full of potential. In the first year of WTO entry, China has achieved a comparatively stable and predicable international trade environment,...

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