1. All
Helena Boe, Diane Ketler, Nicole O’Keefe, Andrew Rubenstein & James Siverio

2. GM’s Portfolio Core Brands: Exiting Brands: Non-US Brands:
James
Non-US Brands:
South Korean
Australian
European-(German)
European-(British )

3. GM History GM founded 1908 Market share peaked in 1960 at 48.3%
Took over Buick, Pontiac, Cadillac
Market share peaked in 1960 at 48.3%
Was leader of global auto sales for 77 years
1927
James
2010

4. Strategic Issue Facing GM
Avoid Bankruptcy
Obama Administration gave GM 60 days to restructure
GM has until
June 1st to turn
itself around
James

5. Current Economy Gross Domestic Product Inflation Rate
(6.29)%
Inflation Rate
(0.62)%
Unemployment Rate
8.9%
Helena

6. Current Auto Industry US Auto industry dominated by five firms
Mature Industry
Consumers looking for “green” / more fuel-efficient cars
James

7. General Motor’s Strategy
Product Differentiator
“A car for every purse and purpose”
Worked from
Largest Auto Maker
Foreign Entrants
Toyota takes title
Problem:
Too many brands to
manage
Diane

8. Public Transportation Revenue Growth Rate
Threats
Entry
Generally low
High barriers for new firms
Buyers
High level of control over dealers
Current downsizing
Substitutes
Effects of increased fuel prices
Green movement
Consumer disposable income
Public Transportation Revenue Growth Rate
Nicky

9. Threats (Continued) Suppliers Changing Consumer Trends Rivalry
Three-tiered supply chain
Highly intricate relationships
Heavy reliance on suppliers
Changing Consumer Trends
Trend away from trucks & SUVs
Economic downturn and rising fuel prices
Rivalry
Direct vs. Indirect Competition
High costs of production
Diversified products
Nicky

10. June 1st: Restructure or
General Motors Today
Bush Plan
Obama Plan: March 30th
GM not viable to
succeed
Restructuring (60 Days):
Get rid of CEO, Jobs,
Plants, Brands
Government Intervention:
55% Stake in GM
Warranties
Incentive program
Diane
June 1st: Restructure or

11. Opportunities & Outlook
Change strategy from product differentiator
Take advantage of… 1
Mandated restructuring to turn GM around
Build a smaller, stronger GM with government’s help 2
Consumer tastes shifting towards fuel efficient cars
Produce hybrids/electric cars/crossovers
Ruby

12. Recommendations 1. Focus on core brands 2. Invest in new technology
Efficient Production
Hybrids
Electric Cars
3. Focus on customer needs and wants
4. Be more flexible in the future to changing demands
Ruby

13. Questions??
All