GENERAL MOTORS ANALYSIS
I. Executive Summary
General Motors, the world's largest vehicle manufacturer, designs, builds and markets cars and trucks worldwide, and has been the global automotive sales leader since 1931. General Motors Corporations is founded in 1908 and has its vehicles sold in more then 190 countries. GM has plans to launch into the China's sedan market with its new Daewoo's sedan 'Kalos' in March 2004. China is a giant market that is full of potential gauging from our Shanghai GM financial results. The increasing disposable incomes and China people thirst for luxury goods would push up the demand for the product. Potential competitions from are kept minimal due to different branding technique and the market is far from saturation. Market penetration pricing would be set for this luxury good made affordable and promotional activities would make an impact launch in China's major cities especially Beijing, Shanghai and Zhejiang where the people are having higher disposable income.
II. Current Situation
a. Company Information
General Motors Corp. is the world's largest vehicles manufacturer. Founded in 1908, GM has been the global automotive sales leader since 1931, having 32 manufacturing operations in 32 countries and its vehicles sold in more then 190 countries. General Motors today reported net income of 901 million in the second quarter. GM Asia Pacific earned a record $163 million in the second quarter of 2003, more than four times the $39 million earned in the year-ago quarter. Strong financial results at Shanghai GM and GM's Australia-based Holden continued to drive improved financial results along with improved equity earnings from GM's Japanese automotive alliances and lower-than-expected start-up losses at GM Daewoo Auto & Technology Co. (GM, 2003)
b. Products and Services
The purpose of this review is to deem the feasibility of the launch of GM Daewoo's...