Marketing Analysis of General Motor (Gm) in China Essay

Words: 3617
Pages: 15
Open Document
1.0 Executive Summary

This strategic marketing report prepared for the General Motors (GM) detailed a thorough analysis the motor vehicle market in China.

GM was a US automaker company, and entered the market of China by joint ventures. SAIC is GM’s major joint venture partner, and it had become the largest plant in China. GM was earning high profits from China by 2004. However, GM faced the challenges from both foreign and local competitors, overcapacity and intervention from Chinese Government. In 2004, the sales dropped sharply.

The first part will be analyzed by STEP theory of the motor vehicle market in China in 2004. Then we will use SWOT analysis to examine if China is still an attractive market for GM. Next, we will …show more content…
GM needed to think a more efficient value chain in order to produce the higher quality products.

4.3 Opportunities

Rapid economic growth rate
As the economic was rising, the needs of people also increased. According to Maslow’s theory of hierarchy of needs, people are motivated by unsatisfied needs. People satisfy lower needs before moving to higher needs (OUHK B891, Unit 1, p.29). With higher consumer income of Chinese, more people could satisfy their basic needs such as food, daily items, safety and love, etc. They were seeking higher needs for a better life style, more people could afford to purchase cars rather than bicycle or motorbike.

Long term growth potential market
Continuous population growth indicated that there was a long term growth potential in China. In 2004, there were only 0.5 cars per 100 people in China. Compared to 80 cars per 100 people in US, China was a great potential market for GM.

Continuous GDP growth
GDP had risen steadily. It indicated that the purchasing power increased in the past few years. More people are willing to consume goods, and they would have the ability to buy their own cars.

Westernized of newly rich
In China, young consumers’ purchasing patterns are
Show More

Related Documents: Marketing Analysis of General Motor (Gm) in China Essay

Essay about General Motors

GENERAL MOTORS Contents: Introduction………………………………………………….. 2 Background of the Company…………………………. 2 Present Age GM……………………………………………. 5 Micro Environmental Factors………………………… 6 Macro Environmental Factors………………………. 10 Marketing Strategy………………………………………. 13 SWOT Analysis…………………………………………….. 15 Introduction: General Motors Company commonly known as General Motors or GM is an American company and is the world’s second largest automaker company. General Motors produces cars and trucks…

Words 2682 - Pages 11

Swot Analysis Of General Motors

General Motors Phase 5 IP Colorado Technical University Betty Thompson MGMT455-1402B-03 Professor Gregory Smith June 23, 2014 General Motors Section 1 Introduction General Motors is the leaders of automotive advance technology and serve its products throughout the globe. General Motors serves the automobile industry for more than 100 years. It plays a pivotal role in automobile industry. This company designed to build and sell cars trucks and automobile parts nationally and internationally. General…

Words 5996 - Pages 24

would you buy Gm? Essay

Company – General Motors Corporation Stephan Diaz Bucp-781 Fouzia Chowdhury- 0935008 Shadik Shamim -0959601 Munkhdelger Batchuluun-0961552 Mission Statement: "G.M. is a multinational corporation engaged in socially responsible operations, worldwide. It is dedicated to provide products and services of such quality that our customers will receive superior value while our employees and business partners will share in our success and our stock-holders will receive a sustained superior return…

Words 4615 - Pages 19

Essay Student: General Motors and Gm

General Motors Company Humberto Tancillo Prof. Womack Cost Accounting – ACC 350 December, 16th 2012 * * For most of the 20th century, General Motors (GM) has been one of the biggest manufactures of cars in the world. GM led in industry innovations and stood the largest car producer from 1931 to 2008. On 2008, the financial crises brought into GM one of the largest corporate falls in history. GM found itself on a terrible cash flow position. It had to declare bankruptcy and became…

Words 1616 - Pages 7

Essay about Chevrolet Europe

Chevrolet marketing strategy plan [2005] General Motor Corporate Chevrolet Europe marketing plan 1. Company Description General Motors, one of the world’s largest automakers, traces its roots back to 1908. With its global headquarters in Detroit, GM employs 204,000 people in every major region of the world and does business in some 140 countries. GM and its strategic partners produce cars and trucks in 34 countries, and sell and service these vehicles through the following brands:…

Words 2367 - Pages 10

Essay about H3 Hummer Marketing Plan

TABLE OF CONTENTS Executive Summary………………………………………………………………………….2 Current Marketing Situation…………………………………………………………………3 History/Background………………………………………………………………….3 Purpose/Mission……………………………………………………………………...4 Products Offered……………………………………………………………………..5 Financial Performance……………………………………………………………….5 Threats & Opportunity Analysis……………………………………………………………..6 Demographic Forces…………………………………………………………………6 Economic Forces…………………………………………………………………….8 Natural Forces…………………………………………………………………………

Words 7385 - Pages 30

Essay on General Motors Analysis

General Motors Analysis I. Executive Summary II. Company Overview and History III. Analysis of External Environment a. Analysis of the General Environment b. Analysis of the Competitive Environment i. Dominant Economic Characteristics of the Industry Environment 1. Market size and growth rate 2. Number and sizes of competitors 3. Stage in the industry life cycle ii. Strategic Group Analysis…

Words 8279 - Pages 34

Essay on Diversification Strategy

this purpose is General Motors (unsuccessful) and Toyota Motor Corporation (successful). The content of this paper will analyze, compare and contrast the outcomes, and recommend actions that General Motors could have made to make their diversification venture more successful. The analysis will include the company’s core business, the size of the companies, and the 2009 financial statements of the companies, the company’s global presence, and their use of e-business. The analysis will also contain…

Words 1412 - Pages 6

Essay Ford: Company Analysis

ABSTRACT Ford Motor Company have been around since 1903, and although in the past they lost market shares due to production and marketing scandals, they remain robust in 2005. This paper has been written to thoroughly analysed Ford through PESTEL analysis to comprehend the macro environment in, Porter’s Five Forces analysis to determine the competition and lastly SWOT analysis to depict the micro environmental factors of the company in question. It has been concluded that due to the fierce competition…

Words 3080 - Pages 13

Downsizing: Mobile Phone and Countrywide Financial Consists Essay

Downsizing IS535 Adan Zejnilovic March 2009 The Analysis Group Countrywide Financial Motorola AIG GM The Analysis Group will be taking a look at downsizing of GM, AIG, Motorola and Country wide financial. We will work on IT strategies that help these companies with their downsizing. Downsizing is done when a company decides to reduce its workforce for reasons other than poor performances, criminal conduct or unethical behavior. Countrywide Financial Countrywide was founded in…

Words 3113 - Pages 13