Shanghai GM,December,2002,There are many kinds of vehicles. Automobile is popular on landway. As an important part of automobile, car plays a key role in modern society. In China,more and more people hold a private car, what is the industry going to be? What should Shanghai GM do? Follow me please,December,2002,Macroscopical Environment,Chinese economy develops quickly, 2002 GDP increases in a rate as 8%, reach 10200 billion. China has the largest population in the world. Many new policies stimulate consumption.,December,2002,Trend of Technology,Electromotion car GPS(global positioning system) Hydrogen fuel battery Air-conditioner without Fluorin Information center-with internet Safety ,Environment Friendly,Comfortable-three key characters,December,2002,Dopod 686,Leader,GPS (GLOBAL POSITIONING SYSTEM),December,2002,The Blooming Chinese Market,Jun. Oct.,2002 Auto produce increase 34.85%, sale increase 35.55%。 Car produce increase 48.63%,sale increase 51.7%。,December,2002,Several Big Corporations,December,2002,Foreign Carmakers Seek More Presence in China,Chinese car market, a “lucrative cake“, has garnered attentions of numerous foreign carmakers. Chinas entry to the WTO, as policies on auto sector are relaxed, many international well-known auto firms set up their bases in China to attract consumers Auto consumption becomes more and more popular in China, as both global and domestic carmakers are sharing the “big cake“, Chinese car market will become more attractive and maturer.,December,2002,International GM,Henry Ford made the first automobile in 1886; General Motor was established in 1908 by William C. Durant,is the biggest automobile manufacturer in the world; GM became the leader of all auto manufacturers since 1931; Get the market share over 15% in 2001.,Global Market,South America,Asia Pacific,North America,Europe,December,2002,Shanghai GM,Established in March,1997,is the largest joint venture corporation of GM in China. Produce cars, engine, gear-box and other kinds of parts. Main brand: BUICK series, SAIL series. Want to be the best auto manufacturer in China.,December,2002,Regal GS 3.0 and its flagship version,Buick Glx,Buick New Century,New Buick GL,Buick Series,December,2002,Audi,Accord,Bora,Competitors of Buick,Passat,Hongqi,December,2002,External Opportunities of Shanghai GM,1、The industry is very mature in the world but it is a blooming industry with much market potential in China. 2、The government think much of the development of motorcar industry to cut down the influence from WTO. 3、The gap between competitors is not too much, easy to get competitive advantage in free competition stage. 4、Distribution quantity raise much, individual buyers take more and more proportion. 5、Relating services are improving. 6、The industry is just beginning, many standards need to be perfected.,December,2002,External Threats of Shanghai GM,1、Severe competition,size smaller than multinational corporations. 2、Heavy tax limits consumption. 3、Price is high compared to consumers earning. 4、Economical car does not meet the requirement of environment protection very much. 5、The price of import car will be lower as the tariff down, domestic car will lose the price advantage 6、Poor city traffic and limited parking place. 7、Depend on affiliated enterprises for model, poor R&D ability. 8、Without globalization stock. 9、Local protection.,December,2002,External Factor Evaluation(EFE) Matrix,December,2002,CPM Matrix,December,2002,Market Positioning,December,2002,Internal strength of Shanghai GM,180 retail outlets distribute 104 cities,30 province,can be found almost everywhere. Mature brand，high brand loyalty. Global R&D branch meets deferent demands. Customer-first serving idea, international level service. Soft marketing, manufacturing, logestics, IT system. Courtlike advertisement, rich and colorful culture transmitting activities. Strong ability in product mix expanding. Good public image High quality product. Both product and service being improved.,December,2002,Internal weakness of Shanghai GM,Cross cultural clash could end in failure of decision-making. Frequency merging might get shortage of cash flow. Too many kinds of products bring no scope economy, cost rising. Fittings stocking by electronic commerce is not so much. Too much media reporting could be understood to be untruthful. Doesnt hold Chinese consumers mentality deeply.,December,2002,Internal Factor Evaluation (IFE) Matrix,December,2002,TOWS Analysis,December,2002,TOWS Analysis continued,December,2002,TOWS Analysis continued,December,2002,SPACE Matrix,December,2002,The Internal-External (IE) Matrix,December,2002,Grand Strategy Matrix,1.Product development 2.Market penetration 3.Market development 4.Forward integration 5.Backward integration 6.Horizontal integration,December,2002,QSPM (quantitative strategic planning matrix),December,2002,QSPM Continued,December,2002,Thank you ver