Marketing Analysis of General Motors
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This research provides a brief marketing analysis of the General Motors Corporation. General Motors competes in several major industries, of which the three most significant for the company are the automobile and truck manufacturing industry (Leach, 1990c), the aerospace and defense industry (King, 1990), and the computer software and services industry (Novick, 1990). As the company's activity in the automobile and truck manufacturing industry accounts for 87 percent of total sales at General Motors (Leach, 1990c), however, this marketing ana lysis is restricted to that industry. General Motors is a worldwide company. In 1989, the com pany had a 17.9 percent market share of total worldwide auto mobile and truck sales (Leach, 1990c). Foreign sales, however, accounts for only 16 percent of the company's total sales (Leach, 1990c); therefore, this marketing analysis is restricted to the company's participation in the American auto mobile and truck market. UNCONTROLLABLE VARIABLES The uncontrollable variables of greatest concern to General Motors in 1990 are those related to economic condi tions, foreign competition, the preferences of a growing number 1 2of American automobile purchasers for foreign cars, and govern mental action (Leach, 1990a). In the early fall of 1990, the American economy is just entering, or it is poised to enter, economic recession. A recession in itself is sufficient to impact significantly t
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eral Motors, 21 percent for Ford, and 15 percent for Chrysler (Leach, 1990a).
SEGMENTATION STRATEGY AND
CONSUMER BEHAVIOR
General Motors practically invented segmentation strategy in the automobile industry. In the 1980s, the company's prob lem in this context was that it did not recognize that segmen tation definitions in the new automobile market were changing. Ford, Chrysler, and many of the foreign automobile manufac turers, however, both recognized and reacted to the changing patterns.
Significantly, the price/quality equation assumed a greater role in consumer automobile decisions in the first half of the 1980s. Unfortunately for General Motors, an increasing number of new car buyers perceived a greater value for the price ratio in automobiles produced by Ford and
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Chrysler in the United States, and by many Japanese and German automobile manufacturers. As a consequence, the General Motors market share for domestically manufactured automobiles and trucks slipped from 60 percent in the late 1970s to today's 48.6 percent. In 1989 and 1990, General Motors has made efforts to correct this situation, and, in 1990, General Motors is the only one of the three domestic automobile manufacturers to record market s
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Some common words found in the essay are:
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Approximate Word count = 1370
Approximate Pages = 5 (250 words per page)
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