Helena Boe, Diane Ketler, Nicole OKeefe, Andrew Rubenstein & James Siverio.

Helena Boe, Diane Ketler, Nicole O’Keefe, Andrew Rubenstein & James

Siverio

GM’s Portfolio

Core Brands:

Exiting Brands:

Non-US Brands:

European-(German)

European-(British )

AustralianSouth Korean

GM History

2010

1927

GM founded 1908 Took over Buick,

Pontiac, CadillacMarket share

peaked in 1960 at 48.3% Was leader of

global auto sales for 77 years

Strategic Issue Facing GM

Avoid BankruptcyObama Administration gave GM 60

days to restructure

GM has until June 1st to turn

itself around

Current Economy

Gross Domestic Product (6.29)%

Inflation Rate (0.62)%

Unemployment Rate 8.9%

Current Auto Industry

US Auto industry dominated by five firms

Mature Industry

Consumers looking for “green” / more fuel-efficient cars

General Motor’s Strategy

Product Differentiator“A car for every purse and purpose”

Worked from 1931-2008 Largest Auto Maker

Foreign EntrantsToyota takes title

Problem: Too many brands to manage

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

Threats (Continued)

Suppliers 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

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

June 1st: Restructure or

Opportunities & Outlook

Change strategy from product differentiator

Take advantage of…• Mandated restructuring to turn GM around

• Build a smaller, stronger GM with government’s help

1• Consumer tastes shifting

towards fuel efficient cars• Produce hybrids/electric

cars/crossovers 2

Recommendations

1. Focus on core brands2. 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

Questions??