Multinational company project (General Motors)
Sorang Kim
Seoyeon Park
Nuri Kim
Prior to entering in the body, General Motors (GM) is an American global multinational
corporation is based in Detroit, Michigan. GM has about twenty-eight overseas subsidiary
companies in twenty-four countries, and this company sells its automobiles at one hundred and
sixty-nine countries. In 1908, General Motors was founded by William Durant, and after that, it
took over the companies that manufacture car parts such as Cadillac and Oldsmobile. However, it
experienced economic slump after bought Chevrolet Company. As this result, William Durant, a
founder of General Motors resigned and Alfred Sloan II became a chairman of GM Company. He
reorganized and revamped his company, furthermore, his hard works made a good example of
the United States. General Motors had surged past Ford Corporation in 1928 and since that GM
has gained the premier place in the automobile industry.
General Motors showed its creative ability with various business strategies such as
diversification of car models that customized income level, car design, and model for design
change from year to year, and selling on an installment basis. Continuously, GM made a success
of its full-size car after World War II and also made a success of its sports car and compact car.
Since 1980 until now GM Company is trying to change as entering several business like the
aerospace, high-tech, and defense industry. At this present, General Motors produces vehicles
under brands: Buick, Cadillac, Chevrolet, GMC, Opel, Vauxhall, and Holden. In 2011, GM
Daewoo brand in South Korea was changed company’s name to GM Korea and introduced
Chevrolet with lightning speed.
General Motors has one strategy that they used which helped them penetrate into the
foreign markets; Porter’s Competitive Advantage is the ability gained through attributes and
resources to perform at a higher level than others in the same industry or market and is still used
by the company even up to date. By producing goods of a higher standard whilst still using the
resources attributed to the location, this results in a superior performance in that sector and yields
a higher profit at no extra cost, ensuring survival and a prominent placing within the market.
GM first entered China in the 1920s. There was a Chevrolet dealer in Shanghai during
that time. At that time, GM vehicles were unique and something that the Chinese had not been
exposed to, they were very open towards the ideas. In contrast, some of the European
manufacturers were releasing vehicles that were at least 10 years old when they reached the
China market. Success in China is built instead on relationships, a fact that is well-illustrated in
“American Wheels, Chinese Roads.” China’s overriding importance to GM was so pronounced
that GM executives even publicly acknowledged that the Buick brand had been saved from the
