Economics
Johnson & Wales University Cadillac Global Sales Questions

Johnson & Wales University

Question Description

I don’t understand this Economics question and need help to study.

SUMMARY:

Cadillac's global sales are increasing and it now sells more vehicles abroad than at home. Contributing to this growth is the firm's success in China, where it has grown to be the country's fourth largest luxury auto brand. Cadillac's success is being supported by its decision to produce many of the cars in China to avoid a 25% tariff on imports. The firm also modifies its products to accommodate local consumer preferences, such as providing plush rear seats with high-definition TV screens, since many Chinese buyers of Cadillacs use a chauffeur.

QUESTIONS:

  1. What factors have contributed to Cadillac's success in China?
  2. How could Cadillac differentiate its products to gain market share against the "B-B-A" (i.e., BMW, Benz and Audi) in China?
  3. What unique opportunities and challenges face global auto companies wanting to increase sales in China?
  4. How could Cadillac increase sales in the United States?

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Final Answer

Attached.

Running head: CADILLAC

1

Cadillac Global Sales
Name
Institution

CADILLAC

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Question 1
Cadillac sold more cars in China in comparison with the U.S. which was an emblematic
achievement for General Motors (GM) in light of the fact that the fundamental focal point of the
automobile giant is to grow past the home market and become one of the overpowering company
in selling posh and luxury cars. GM at first delivered 18,011 vehicles and SUVs in the Chinese
market, and in a range of 2 months, 10,398 automobiles were sold, which reflected a rise in the
financial market exchange as well as the expansion of Chinese exports Market (Colias, 2017).
Furthermore, the principle factor leading to this expansion was occasioned by the fact
that Chinese youths are engrossed with BMW, Benz and Audi (B-B-A) brands and would satisfy
their desires and needs by buying Cadillac models. Nonetheless, as Cadillac company started to
remodel its cars to resemble the existing brands than just giving them an appealing and sharp
appearance; Cadillac adapted the Chinese market preferences and tastes. For instance, like model
CT6 with a longer wheelbase as well as high dial definition which is the most preferred model by
the Chinese, led to increase in market sales and ultimately, the product demand in the market
(Colias, 2017).
Q...

DrAtticus (10916)
University of Virginia

Anonymous
Return customer, been using sp for a good two years now.

Anonymous
Thanks as always for the good work!

Anonymous
Excellent job

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