Type: Process Essays
Sample donated: Marc Richardson
Last updated: August 17, 2019
Summary The increased globalization requiresevery firm; to have unique strategies to enable the companies to have a competitiveadvantage. This research focuses on challenges that face the General MotorCompany as it integrates its products and services across the border. Theexceptional attributes that a company needs to prioritize in order to increasecompetitive advantages include a global coordination, global market awarenessand competencies and global orientation (Okpara, 2008). The study also examinesmethodologies employed to investigate strategic marketing. Also, it outlinesapproaches that can be employed to improve the marketing techniques of the GM.
Introduction General Motors (GM) firm is among theworld’s leading auto producers, that manufacture car, and trucks, with renownedbrands such as Chevrolet, GMC, Buick, and Cadillac. The strategy of marketdevelopment is considered company’s most important strategy in internationalmarketing. However, the approach contributes to growth in sales (Czinkota,2013). Market development means establishing markets for a firm’s productsinternationally and locally in areas, which GM does not have a presence yet. MethodologiesInterviewThe study employs structured,semi-structured, in-depth interviews, and unstructured and discussions. Itchose to conduct a semi-structured interview of approximately thirty-fiverespondents translating to twenty-eight General Motor staffs (Townsend, 2010).
The interview was structured in such a way that various groups of peopleinclude members from corporate communication, human resource department, designand styling management engineering, vehicle line executive, executiveleadership, and marketing and brand management. The interview helped theresearchers to acquire the first-hand information from all stakeholders andshareholders on what they know about issues facing the GM Company and theproducts they offer and the factors they think contribute to the stunted growthof the company and what can be done to improve the status. Snowball method with the human resourcesteam from the vehicle development team was conducted and provided the firstseven links and the ensuing respondents gathered from recommendations of theseinitial interviewees.Findings and InterpretationsThere are cultural differences when itcomes to global marketing.
No two cultures are the same. Culture defineseverything a society does or expects. Misunderstanding both the business andsocial culture in another nation is a major challenge in the business arena.Westerncultures are depicted in many studies to be famous for their promotion ofindependence, and marketing, and they are less inclined to be considerate andrespectful towards other cultures. Studies have shown that Western culture,they have found, conditions citizens to consider themselves as exceedinglyindependent entities. Proves indicate that Westerners have a tendency to focuson inner objects more than on their environs. In contrast, Eastern culturesemphasis interdependence. Researchers say that when Easterners take in a sight,they have a tendency to focus more on the situation as well as the object.
Studies show that the level ofcompetition experienced in international markets is more complex and dynamicthan the one experienced in domestic markets. Competition worldwide exists withthe private organization. Due to increased and advanced technology, globalmarketing face a major challenge because every business has access to theinternet and advertising becomes very simple. The major competitors are the federal agencies which compete forcongressional fraud of funds yearly basis.
This challenge can be solved byensuring an increased focus on providing quality customer to build thebusiness’ image. Also, training and top-down answerability are a necessary toreduce competition issues. Accountability should focus on the spending. Theadministration should be accountable and transparent to allow for restructuringoperations and identifying areas of opportunity within the organizationalmodel. Most business at international marketing level has acknowledgedinspections and audits and as means to improve accountability among the variouslevels of the institutionMarket intelligence in foreign marketsis different from that of domestic markets. It is difficult therefore to gathercertain information for some markets as domestic markets statistical agenciesmay not be as sophisticated as foreign markets. Politicaldifferences: No two states have similar legalsystems. Each country has its strategies relating to foreign products andservices.
Advancedtechnology: The most efficient way to reach thecustomer in the current world is not through the use of compound and intricatewebsites and media sites but rather simplifying a client’s decision making byproviding what is essential for a customer to know and leaving the rest.Research shows that companies who simplified their advertising and focused oncustomer’s decision-making process had an assurance to sell off up to 86%.Studies show that GM utilizes the approach through simple but efficientadvertising.
The popularity of GM products can be attributed to GM’sintuitiveness in their advertisements. GM’s advertisement increaseaccessibility of its products to all clients worldwide. Although GM hasenhanced digital marketing in the social media platforms that include Facebookand Twitter, it faces a major challenge from its competitors such as FordCompany and Toyota.
It is evident thatthe company has not been able to give an opportunity for customers to displaytheir ratings and reviews on their timeline pages. This hinders its customersto understand their needs since it does not provide the customer with all theinformation about the product that is relevant to the decision-making process.Failure to provide the customer with transparent information hinders the customerfrom making an informed purchase decision.Strategicmanagement issues: After facing bankruptcy, the companydiverted into selling sports utility vehicles, which were huge and gasguzzlers.
It has been proven that this compromised on the safety and economyand they could not orchestrate with the firm’s marketing policy. On thecontrary, its competitors such as Toyota were concerned about the atmosphereand financed hybrid development. Another challenge facing the company isthat Toyota is considered as a green company. Others including GM and itsbrands are not considered environmentally friendly. Most of GM holdings such asBuick, Pontiac, Chevy, Saturn, and Saab lacks uniform marketing strategies andthe few members of the purchasing public understand the GM’s point of sale andwhere it differentiates itself from. On the contrary, its competitors such asPorsche, Mazda, Nissan, Honda, BMW, and Toyota have a distinctive brand imagemaking their marketing strategies easier and with less competition. Since GM lost its track, it has focusedon improving its marketing strategies to enable it to fit in the currentglobalization (Vrontis, 2013). International branding may be the mostenthusiastically noticeable outcome of company tries to adjust to globalization,as it is the aspect with which a company depicts an image to a more variedclient base.
The instituting of international brands is also perceived as meansto conquer competitive trends by both universal and local entrants alike,chiefly in emerging markets. For instance, Chevy is projected to be the GMworth brand all over the world. Chevrolet brand is available in approximatelyseventy markets globally.Other strategies aimedto improve the GM strategic marketing include:Improvedtechnology: Due to the increasingly advancedtechnology, standardization and adaptation approaches allows the companies tomeet the popular technology used to market its products.Competition:Increasedcompetition in the fact reduces the preferences of a product.
Adoption of theapproaches will make the company’s products unique; thus, increasing thepreference. Normalizationof cultural tastes and preferences: homogenization of products worldwidereduces its preference and taste. Standardization and adoption approaches wouldincrease the preference of the products. Marketingtools: Marketing tools used in foreign markets are anadvanced and differs from one market to another (Hitt, 2015). Standardizationand adoption approach by GM Company help the company to use the trendy tools inmarketing their products. Culturaldifferences:It has been confirmed that increasedcultures in foreign markets hinder the distribution of products.
Adaptationhelps the company to cope with such challenges and language barriers.The above-statedapproaches help GM Company to achieve its objectives through;v Sellingtheir product at favorable and affordable prices that meet all clients’ needs.v Helpingthe company to modify products that are designed differently for differentregions (Pride, 2010)v Allowsthe company design new products, of high quality for international markets.v Integratingall market variations into one stretchy product design and introducing aninternational productv Theapproaches increase the credibility between the buyers and sellers as theyallow the company to supply goods to that meets established standards ataffordable prices. This allows the company’s vehicles to be purchased quickly,and this increases the company’s profits.