General Motors’ Future Marketing Strategy - 1375 Words

General Motors' Future Marketing Strategy (Essay Sample) Content: General Motors' Future Marketing Strategy General motors, is arguably the largest car manufacturer in the world. It's great reputation dates back to the early 20th century. However, it has been on a downward spiral in the recent times. This can be attributed to the increased competition from other car manufacturing companies especially those from Asia and Europe. Another reason for GM's slump in market share is the lack of competitive innovative. Meanwhile, as most car manufacturing companies are springing out new car models, GM has been relaxing and leveraging on their success and not focussing on the future of their business. However, they have recently released their new electric car models which have slightly re-energized their sales. Meanwhile, for the company to regain their lost market share and improve their current figures, they should look out for new strategic plans for the future growth. They already have great innovations, employees and capital and only need to strategise on their marketing plans. First and foremost, they should adapt two common and very important marketing strategies: 1 Strength and Weakness and Opportunity and threat (SWOT) strategy. Most analysis strategies that analyze strengths and weaknesses are mostly descriptive. The SWOT analysis is a continuation of the analysis of threats and opportunities. It enables a company to establish clear strategic alignment to its operations. In this strategy, the information collected from analyzing strengths, weaknesses, opportunities and threats are combined together in a SWOT matrix. SWOT analysis leads to solid strategies which are easy to deduct within a mixture of emphasizing strengths and limiting weaknesses in the view of long-term opportunities and threats. This is one of the most effective strategies that General Motors can use to kick-start their resurgence in the car making industry. Firstly, The Company needs to re-strategize its marketing plans in line with the principles of SWOT. They already have their strength in the high quality innovations that it's greatly known for. Secondly, GM should investigate and establish its weaknesses and come up with the required recommendations. Thirdly, they need to reanalyze where their opportunities belong and the amount of impact it will have on their business. The current strategy of General Motors is to improve their innovation strategy and expand their global branches. SWOT's offensive strategies extract current corporate strengths and try to look for opportunities in the surrounding environment. This strategy contains internal strengths and external opportunities. The strategy of for growth is dependent on the competitive positions. However, there is a threat of putting off a lot of focus on strength that are already inexistence and in used in the current markets and products. SWOT demands that companies have to develop employee skill level and development initiatives. Another reason why General Motors should adopt this strategy is the fact that, SWOT encourages organizations to meet customers' needs. It emphasizes on solving customers' problems by coming up with ways of producing products that are there to solve their problems. In GM's case, the biggest threat is the loss of their remaining customers. They need to upgrade quickly to manoeuvre this problem (Ferrel, 2014 ). 2 BCG Matrix This matrix is a helpful tool in the process of re-strategizing. It is the easiest and the most used portfolio model. This model is based on two factors: growth of business rate and a moderate market share. Business growth rate can be defined as the expansion of the industry that a company is involved. Relative market share is the ratio of a business size to that of the largest competitor. These two factors can be of great importance in plotting the business in which the company is involved. The matrix can be useful in planning cash flows, cash cows which generates more money than that that can be re-invested. BCG, states that cash cows and stars, which have a superior market-share position and are always the most profitable businesses. The core ideas of this matrix is that the level of the market share causes high profitability since learning effects, experience effects market power entry barriers and other influences. According to most researches done, high market share is directly proportional to profitability. (Enz, 2010) This is a strategy that the General Motors should try to enforce. It is very simple and has high profitability rate. Since GM is keen on improving its profits, this will be a good way of achieving high revenue levels. Furthermore, its simplicity makes it easier to adapt to. It uses fewer resources to achieve resources. Advantages of the IE Matrix The grand strategy reduces weakness and maximizes strengths. This model eliminates the losing end of the company and replaces it with the winning one. It also encourages the development of employee skills. This leads to high morale at the work place and consequently the company's profitability. Furthermore, Grand strategy ensures that a company achieves its strategic goals. It gives s guidance to strategic alternatives. It encourages the expansion a business to cover untested markets. Grand strategy ensures that a company maintains its normal performance with a prospect of improving year after year. Disadvantages...