Marketing Analysis of General Motor (Gm) in China
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 further concentrate on the pros and cons of both strengthening its position in China, and using China as an export base to the worldwide market. By analyzing all this data, conclusion and recommendation will be proposed to GM.
2.0 Introduction
General Motors was a multinational automobile manufacturer. It was found in 1908 and headquartered in US. It manufactured its cars and sold them all over the world under the brand of Buick, Opel, Saab and Cadillac, etc.
By 2004, General Motor (GM) had been successful in China. It operated six joint ventures and two wholly owned foreign enterprise. SAIC is the major joint venture partner of GM. Through its joint venture, Shanghai GM was the second highest market share of automaker in China, and it had achieved an outstanding result and earned a huge profit from its China operation by this year.
However, the business environment of China was changing rapidly. Many foreign and domestic firms noticed the great potential in doing business in China, GM had faced the new challenge from these competitors. It had also experienced decrease of sales volume especially for some of the best selling model in 2004. GM had to rethink its marketing plan in China.
3.0 Overview Of China Vehicle
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 further concentrate on the pros and cons of both strengthening its position in China, and using China as an export base to the worldwide market. By analyzing all this data, conclusion and recommendation will be proposed to GM.
2.0 Introduction
General Motors was a multinational automobile manufacturer. It was found in 1908 and headquartered in US. It manufactured its cars and sold them all over the world under the brand of Buick, Opel, Saab and Cadillac, etc.
By 2004, General Motor (GM) had been successful in China. It operated six joint ventures and two wholly owned foreign enterprise. SAIC is the major joint venture partner of GM. Through its joint venture, Shanghai GM was the second highest market share of automaker in China, and it had achieved an outstanding result and earned a huge profit from its China operation by this year.
However, the business environment of China was changing rapidly. Many foreign and domestic firms noticed the great potential in doing business in China, GM had faced the new challenge from these competitors. It had also experienced decrease of sales volume especially for some of the best selling model in 2004. GM had to rethink its marketing plan in China.
3.0 Overview Of China Vehicle