Helena Boe, Diane Ketler, Nicole O’Keefe,
Andrew Rubenstein & James Siverio
Core Brands:
Exiting Brands:
Non-US Brands:
South Korean
Australian
European-(German)
European-(British )

GM founded 1908
 Took over Buick,
Pontiac, Cadillac

Market share peaked in
1960 at 48.3%
 Was leader of global
auto sales for 77 years
1927
2010
Avoid Bankruptcy

Obama Administration gave GM 60 days to
restructure

GM has until
June 1st to turn
itself around

Gross Domestic Product
 (6.29)%

Inflation Rate
 (0.62)%

Unemployment Rate
 8.9%
US Auto industry
dominated by five
firms
Mature Industry
Consumers looking
for “green” / more
fuel-efficient cars
Product Differentiator
“A car for every purse and purpose”

Worked from 1931-2008
 Largest Auto Maker
Foreign Entrants
Toyota takes title

Problem:
 Too many brands to
manage

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

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


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

Change strategy from product differentiator

Take advantage of…
1
2
• Mandated restructuring to turn GM
around
• Build a smaller, stronger GM with government’s help
• Consumer tastes shifting towards fuel
efficient cars
• Produce hybrids/electric cars/crossovers


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