Case Study Report-GM on Star

Essay by amoyboyUniversity, Master'sA, June 2006

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ABSTRACT 4

PART ONE INTRODUCTION 4

1.1 HISTORY OF GM COMPANY 4

1.2 ONSTAR PRODUCT 5

1.3 CASE OVERVIEW 5

1.3.1 THE KEY DECISION THE PROJECT TEAM MADE IN 1997 ARE: 5

1.3.2 ACHIEVEMENT TILL 2002 6

1.3.3 EVALUATION OF DECISIONS OF 1997 6

PART TWO KEY PROBLEMS 7

PART THREE SITUATION ANALYSIS 9

3.1 THE U.S. ECONOMY 9

3.2 TELEMATICS MARKET ANALYSIS 10

3.3 CUSTOMER ANALYSIS 11

3.3.1 POTENTIAL CUSTOMERS 11

3.3.2 MARKET SEGMENT & CUSTOMER PROFILE 12

3.3 COMPETITORS ANALYSIS 12

3,4 SWOT ANALYSIS 12

PART FOUR TURNAROUND STRATEGIES 14

4.1 STRATEGIC POSITION 14

4.1.1 MISSION STATEMENT OF GM AND ONSTAR 14

4.1.2 POSITIONING 14

4.1.3 OBJECTIVES OF NEXT FIVE YEARS OF ONSTAR 14

4.2 CUSTOMER RETENTION STRATEGIES: 15

4.2.1 RELATIONSHIP STRATEGY 15

4.2.2 SWITCHING-BARRIERS STRATEGY 16

4.3 SALES STRATEGY 17

4.4 STRATEGIC ALLIANCES 17

OBTAIN THE GOVERNMENT AND SOCIAL SUPPORT 17

INTEGRATED OTHER SUBSTITUTIVE SERVICE COMPANIES 18

4.5 MARKETING PLAN: 18

4.5.1 MARKETING MIX 18

ADD A NEW SERVICE FOCUS--CONSULTING FOR AUTOMOBILE COMPANIES 21

4.6 FINANCIAL ANALYSIS: 27

4.6.1 REVENUE STREAMS 27

4.6.2 COST ANALYSIS: 28

4.6.3 CVP ANALYSIS 30

CONCLUSION 31

REFERENCES: 31

Abstract

This report is constructed of three parts.

Part One is intended to introduce the background of Parent Company--GM and OnStar Company, the feature of the OnStar product and service and overview this case then gives a brief evaluation of the strategies that GM made in 1997 when GM first decided to occupy the telematics market.

Part Two is the analysis of key problems OnStar is facing.

Part Three is the situation analysis, including the U.S. economy and the vision of telematics market.

Part Four is the detailed five-year-strategies based on previous achievement that OnStar has made in telematics over past ten years and the new development of telematics market and economic. In...