GM1 Case Analysis. Analyze GM using competitive forces and value chain models. Porter's Competitive Forces Model Porter's Value Chain Model2. Evaluate GM's current business strategy in response to its competitive environment. What is the role of Internet technology in this strategy? How successful is this strategy? GM's current business strategy in response to its competitive environment is based on the belief that by intensively integrating Internet technology into all of its business processes, GM could become a smarter, leaner, faster, more attuned company. the customers. This technology would help GM reduce the time it takes to design, engineer and produce a new vehicle from 24 to 12 months, cutting up to 10% of the cost of making a vehicle and eliminating supply chain inefficiencies. Internet technology could be the catalyst for GM to rebuild its entire value chain, transforming itself into a customer-centric company that provides many different electronic services to consumers beyond automobiles. Two decades of restructuring and reorganization have brought profound changes to GM, reducing waste and overburdened bureaucracy. The company reduced the time it takes to produce a car from 48 to 18 months, eliminating $1 billion in engineering costs. It has also developed new online sales channels and sources of income. GM is becoming highly specialized in Internet sales.3. Evaluate each of GM's e-commerce and e-business initiatives described in this case. How much value can they bring to the company? Selling Vehicles OnlineGM does not actually sell vehicles directly online but provides websites with a range of services for both customers and dealers.GMBuyPower.com, est...... middle of paper .. ....t address?Selling Vehicles OnlineLaws in most US states make selling new vehicles extremely difficult, due to the lobbying power of the National Auto Dealers Association (NADA), in addition to licensed auto dealers. Dealerships are vital to GM for many other reasons, including their close connection to their customers and the car-buying public. Annual trend of just in time component supply deliveries. Manufacturers should now, cleverly, keep inventories of certain types of parts (modules), so that they can be flexible enough to take a generically defined car, then at the last minute suddenly have a defined car.
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