Strategies of General Motors and Toyota Motor Corporation Case Study

Strategies of General Motors and Toyota Motor Corporation - Case Study Example Strategies are usually tailored to take advantage of the various opportunities in the firm's environment while harnessing its strengths and competencies. Currently, General Motors Corporation (GM) leads the automotive industry with total revenue of US$192.60 billion during 2005. This is amidst the US$2.6 billion loses incurred during the same year which is due to the weak demand in North America. Following GM is Ford Motor Corporation (US$178.10 billion), Daimler Chrysler AG (US$177.37billion), and Toyota Motor Corporation (US$162.92 billion). Even though smaller in terms of revenue, it is notable that Toyota recorded the largest net income at US$10.61 billion during 2005 (Yahoo Finance 2006). It is apparent that there is an intense competition between the four largest players in the industry. Toyota was able to dislodge the Ford during 2003 and is widely regarded to as having the aspirations to become the future industry leader next to GM. From here, we can see a struggle between the companies as they are both challenged to devise winning strategies. For GM, the challenge is to craft and implement an effective strategy to maintain its position in the global market, while for Toyota a strategy to battle head-on with GM and increasing its market share. The company has a wide array of product line under the brands Chevrolet, Pontiac, GMC, Oldsmobile, Buick, Cadillac, Saturn, and HUMMER. The company's marketing arm is supported by retail dealers and distributors in the United States, Canada, and Mexico as well as dealers overseas. GM is recognized as the largest vehicle manufacturer selling 8.5 billion cars in 2001 while its sales in 2002 account for 15% of the trucks and vehicles sold globally (Yahoo Finance 2006). Traditionally, GM's approach to marketing its products is targeting a specific market segment for a specific brand so that the company's products do not compete with each other. These were profitable for the automotive firm as the brand's shared components and common corporate management gave way to substantial economies of scale while the distinctions between the brands created an "orderly upgrade path." Before 1995, the company has a full range of products ranging from Chevrolet which is offered to an entry-level buyer who is more concerned on a more practical and economical vehicle to the upscale Cadillac which is targeted to the elite market as it is regarded as the "standard of luxury (General Motors 2006)." Nevertheless, this strategy did not persist as the GM started to implement a gradual blurring of its divisions during 1995. This strategy leads to cannibalization in the market share of GM as each division competes with each other (General Motors 2006). During 2004, the company has announced a new strategy for its product lines which is apart from the traditional marketing and positioning it employs. This shift in brand strategy is targeted at â€Å"building sales, cutting costs, and bolstering brand identity (Garsten 2005).†Ã‚  Ã‚  

Impact of Unemployment on USA Economy Essay Example | Topics and Well Written Essays - 1000 words

Impact of Unemployment on USA Economy - Essay Example Unemployment is root to cause the birth of other economical flaws. In this recession period, emerging and emerged countries plague with contemporary political, Economical, social and security concerned issues. A high potential unemployment rate affects symptoms of development of economy. Summary of Researched Articles According to an article in the economist (2012), USA hardly confronts unemployment challenges. The American President Barack Obama works day and night on generating jobs for jobless people of America. To some extent President of USA has succeeded in providing jobs to jobless in several sectors such as private organization, Public Sector, and local Government, and other manufacturing and services sectors. On the other side, Public Sector, and Local Government cut thousands of people of jobs. This cutting of Job impacts on budget of America, and ends up rising unnecessary load in expenditure of budget. The policy makers stride gradually to overcome this recession problem. America seems confident about recovering economical recession and move ahead with steady pace. Associated Press, The Wall Street Journal, (2012) states that in USA, the problems are not evicted, however, it is growing indeed. The unemployment applications are filling large population and hiring is too slow. This is putting load on unemployment benefit for jobless people. Unfortunately, large numbers of people are laid off from different areas of USA (New York, Washington, Texas, New Jersy, California and Pennsylvania) from several sectors like construction, manufacturing, Entertainment, Transport, Agriculture, Ware house and food service Industry. The dilemma is that for the large number of people laid off instantly, it is hard to provide all facilities from unemployment benefit. As a matter of fact that unemployment is reducing consumer demand, desire and needs. The fact to remember is that slowly and gradually, jobless people leave to demand of daily consumption goods because it has not enough money to pay these commodities. When such situation is occurred sales shows decline and production and manufacturing service industries may be unable to generate profit, enough to run the firm. So they put pressure on employees to increase efficiency and cut costs. If employees could not generate profit, they are laid off without any reason. If same situation is constant, the industries will not be able to sell and survive in a economically disabled state. People cannot invest and individual savings ratio declines. In short, whatever they save is being utilized in daily basic commodities. In the end diseconomy situation begins. Ben Casselman and Josh Mitchill (2012) state that the Sharp decline of unemployment rate of USA direct towards a positive flow in economic trends. But in adverse, Europe countries insulated USA economy, so they may create obstacles in growth of USA. At the end of 2011, USA generated 120000 jobs for people of USA, which indicates decline of unem ployment of 0.4 per cent from 9.0 percent. These jobs generation reduced load of unemployed benefit. When this news spread, market spontaneously surged up and sales of Automobiles increased. The economy of USA is slowly improving but the Europe’s diseconomy impacts to other countries too. USA economy relies on other Countries like India, Japan, Europe and China. When any countries’ investment decreases, USA economy declines due to swap factor. The Europe