1. Latoya Swiams General Motors7 19
2011
Latoya Swiams
General Motors
Mass Market
Performance
Brand/status
Risk reduction
Key activities that create value at General Motors involve production, problem solving, and platform. General Motors produced 926 million vehicles in the year ending December 2010.
General Motors uses personal assistance with their customers because when entering in agreements with dealers, distributors, fleet customers, or even customers purchasing vehicles through dealerships, they are able to communicate directly with a representative to get help during the sales process and even after the purchase is complete.
General Motors is a company of diverse brands and sell over 7.5 million vehicles in 120 countries worldwide.
GM became a publicly owned company on November 17, GM sell and service vehicles through the following brands: Buick, Cadillac, Chevrolet, GMC, Daewoo, Holden, Isuzu, Jiefang, Opel, Vauxhall and Wuling and FAW. Strategic alliance between non-competitors are Partnerships that include selling vehicles to a network of dealers for consumer retail sales and fleet customers including daily rental companies, commercial fleet customers, leasing companies and government.
General Motors also rely on key suppliers to provide systems, components and parts needed to manufacture automotive products and operate business.
The diverse brands of selection offer cars from a low to high price range to accommodate any kind of customer. General Motors provide coverage to the customer to keep them moving confidently with their outstanding warranty and roadside assistance.
Physical- 6 continents, 192 countries, and 23 time zones
Financial- Became public in Nov and Dec 2010 offering over 550 million shares of common stock and 100 million shares of Series B preferred stock
Intellectual- their brand, patents and trademarks
Human- 209,000 employees
Many methods are used by GM to promote their products to dealers, retail and fleet customers. They use incentives such as customer rebates and finance rate support.
Customer Segment- General Motors is a company of diverse brands and sell over 7.5 million vehicles in 120 countries worldwide. GM’s largest national market is China, followed by the U.S., Brazil, the United Kingdom, Germany, Canada and Russia.
Value Proposition- GM offers a wide selection of new and used cars from low to high price ranges. Every Chevrolet, Buick, GMC, and Cadillac comes back with the confidence of their outstanding warranty coverage along with roadside assistance and courtesy transportation to maintain their customer relationships and brand/status. Their 2011 model year 5yr/100k warranty coverage applies to all these vehicles. GM also plays a role in risk reduction for their customers. GM designs vehicle controls and systems to assist drivers and to help drivers avoid crashes. For example, studies show that the Electronic Stability Control system created by Gm helps reduce crash risk by 30 percent or more. Quality and safety are at the top o GM’s priority to protect their brand status. They work on technology improvements in crash avoidance and crashworthiness to augment the post-event benefits of OnStar, like advances automatic crash notification. There are many other technology improvements and product development that GM integrates in order to strategically build on vehicle development.
Channels-Many methods are used by GM to promote their products to dealers, retail and fleet customers. They use incentives such as customer rebates and finance rate support. The level of incentives depend highly upon the market demand and level of competition in the market. General Motors maker worldwide through a network of independent retail dealers and distributors. At the end of the year, Dec 2010, there were 4458 dealers in the US, 465 in China and 244 in Mexico and other Central American locations. Additionally, there are over 15, 048 other distribution outlets all over the rest of the world. Gm enters into contracts with each authorized dealer agreeing to sell their vehicles at wholesale or to retail customers from a GM approved location.
Customer Relationship- General Motors primary sales and service interface with their ultimate consumer of products come from authorized dealers. Therefore, their relationship with dealers and distributors and quality of GM dealerships are critical to their success. General Motors uses personal assistance with their customers because when entering in agreements with dealers, distributors, fleet customers, or even customers purchasing vehicles through dealerships, they are able to communicate directly with a representative to get help during the sales process and even after the purchase is complete. Authorized GM dealerships offer parts, services, repairs and accessories for the vehicles they sell. Dealers are authorized to service vehicles under GM limited warrant program using GM parts. Dealers generally provide customers with access to lease financing, credit, and insurance through GM financial services.
Revenue Streams-Asset sale is their main form of revenue because customers by Gm cars and are able to drive, resell or even destroy. 7.5 million vehicles in 120 countries are sold worldwide. Price are fixed list prices, volume dependent based on wholesale volume and number of cars being sold or in demand and/or even product feature dependent based on vehicle and luxuries offered. General motors also create revenue streams from issuing out stock and received net proceeds of 4.9 billion from offering Series B preferred stock of the company.
Key Resources- Their key resources are physical, financial, intellectual and in human form. Their physical resources are through six continents, 192 countries, and 23 time zones. They sell and produce cars and trucks in 31 countries. Their human resource are the 209,000 employees in every major region of the world. Their financial resource is their revenue streams of selling cars to dealers and fleet customers and becoming publicly owned offering 550 million shares of common stock. Also, Partially owned by government after filing chapter 11. Their intellectual resources are their brand, trademark and patents that protect operations, technological improvements and many more.
Key Activities- The key activities that create value for this company is production, problem solving and platforms for their products. Their production activity involves designing, manufacturing and selling vehicles. General Motors produced 926 million vehicles in the year ending December 2010.
Key Partnerships- Gm became publicly owned on November 17, 2010 and announced pricing of the public offering of common stock of $33.00 per share. GM sell and service vehicles through the following brands: Buick, Cadillac, Chevrolet, GMC, Daewoo, Holden, Isuzu, Jiefang, Opel, Vauxhall and Wuling and FAW. Partnerships include selling vehicles to dealers for consumer retail sales and fleet customers including daily rental companies, commercial fleet customers, leasing companies and government.
Cost structure- General Motors spends a lot of capital investment on implementing improved technological innovation in designs, engineering and manufacturing in order to stay competitive in the global market. Their cost structure is cost-driven and value driven. For future competitiveness and ability to achieve long term profit, General motors cut costs incurred in automotive operations and labor operations. General Motors reduced compensation for their most highly paid executives and reduced the number of salaried employees. General Motors also discontinued multiple brands such as Pontiac, Saturn and Hummer, focusing on four U.S brands, Chevrolet, Buick, Cadillac and GMC.
Asset sale is their main form of revenue because customers by Gm cars and are able to drive, resell or even destroy. 7.5 million vehicles in 120 countries are sold worldwide. Prices of vehicles range from volume dependent, fixed list price, and product feature dependent. General motors also create revenue streams from issuing out stock and received net proceeds of 4.9 billion from offering Series B preferred stock of the company.
General Motors spends a lot of capital investment on implementing improved technological innovation in designs, engineering and manufacturing in order to stay competitive in the global market. For future competitiveness and ability to achieve long term profit, General motors cut costs incurred in automotive operations and labor operations.