GM should file for bankruptcy -(JACK WELCH) RUBBISH! we’re still the us sales leader (RICK WAGONER)
Legacy (Oxford): Anything passed down from the past, as from an ancestor or a predecessor Let’s talk about the founding ancestors of the modern General Motors, or rather the two predecessors – Alfred Sloan and William Durant. They were not only the longest serving Chairpersons of GM, but were also the most successful ever! And what ‘legacy’ did they pass down? Well, their pioneering strategies saw GM take on the might of even Ford Motors, the champion who gave the world the popular Model-T. Yes, GM had become the largest car manufacturer in the world, mighty and strong... big and famous! But ‘big’ necessarily needn’t prove ‘beautiful’! At the turn of the 20th century, GM’s ‘market segregation’ strategy turned its fortunes for the better. As the then Chairman Sloan put it famously – “A car for every purse!” GM put it in practice by attending to segments, which differed from each other in preferences and propensities to consume (income). It was a time when the company had some of the best-known American automotive brands in its kitty, some like Chevrolet, Buick, Oldsmobile & Cadillac; yes, different cars for different groups. Differential pricing strategies were adopted, and GM started adhering to strictly defined consumer choices. And this ‘legacy’ was proudly passed on, and more successfully used, but only until recently! Here, you might just ask: “But what’s wrong with segmentation and pricing differentials?” The answer’s simple silly – selling the wrong product at the wrong price to the wrong segment at the wrong time; Rick mastered it all with the present day SUV!
Legacy: Pertaining to something old/outdated, does not work well with present up-to-date systems “We have proliferated our brands and dealer network to the point where we lost adequate focus on our core US market. We also biased our product mix toward pick-up trucks and SUVs. And, we made commitments to compensation plans that have proven to be unsustainable in ‘today’s’ globally competitive industry!”
Legacy (Oxford): Anything passed down from the past, as from an ancestor or a predecessor Let’s talk about the founding ancestors of the modern General Motors, or rather the two predecessors – Alfred Sloan and William Durant. They were not only the longest serving Chairpersons of GM, but were also the most successful ever! And what ‘legacy’ did they pass down? Well, their pioneering strategies saw GM take on the might of even Ford Motors, the champion who gave the world the popular Model-T. Yes, GM had become the largest car manufacturer in the world, mighty and strong... big and famous! But ‘big’ necessarily needn’t prove ‘beautiful’! At the turn of the 20th century, GM’s ‘market segregation’ strategy turned its fortunes for the better. As the then Chairman Sloan put it famously – “A car for every purse!” GM put it in practice by attending to segments, which differed from each other in preferences and propensities to consume (income). It was a time when the company had some of the best-known American automotive brands in its kitty, some like Chevrolet, Buick, Oldsmobile & Cadillac; yes, different cars for different groups. Differential pricing strategies were adopted, and GM started adhering to strictly defined consumer choices. And this ‘legacy’ was proudly passed on, and more successfully used, but only until recently! Here, you might just ask: “But what’s wrong with segmentation and pricing differentials?” The answer’s simple silly – selling the wrong product at the wrong price to the wrong segment at the wrong time; Rick mastered it all with the present day SUV!
Legacy: Pertaining to something old/outdated, does not work well with present up-to-date systems “We have proliferated our brands and dealer network to the point where we lost adequate focus on our core US market. We also biased our product mix toward pick-up trucks and SUVs. And, we made commitments to compensation plans that have proven to be unsustainable in ‘today’s’ globally competitive industry!”
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Source : IIPM Editorial, 2012.An Initiative of IIPM, Malay Chaudhuri
For More IIPM Info, Visit below mentioned IIPM articles.
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Ranked 1st in International Exposure (ahead of all the IIMs)
Ranked 6th Overall
Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri’s Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
IIPM’s Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri – A Man For The Society….
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM B-School Facebook Page
IIPM Global Exposure
IIPM Best B School India
IIPM B-School Detail
IIPM Links
IIPM : The B-School with a Human Face
IIPM - FLP (Flexi Learning Program)
