SFSU Business General Motors India Business Failure Presentation

User Generated

xaw919

Business Finance

San Francisco State University

Description

Unformatted Attachment Preview

User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

Explanation & Answer

View attached explanation and answer. Let me know if you have any questions.

General Motors India Business Failure Script
Slide: 3
Speaker: General Motors India was established in 1928 when its parent company General
Motors Corporation decided to expand its market to India. It was among India's top five
automotive manufacturing companies before the company announced its closure. General
Motors India has manufacturing plants located in Halol and Talegaon, with its main headquarters
located in Halol. The two companies had a total production of about 385,000 vehicles annually.
It produced vehicles such as Chevrolet Spark, Chevrolet Beat, Chevrolet Aveo U-VA, Chevrolet
Aveo, and Chevrolet Optra Magnum.
Slide: 4
Speaker: Since the company was established in India, it has encountered ups and downs. For
example, in 2010, the company had a 61% market growth. This was an increase from its
previous year's sales in 2009. In 2010, the company sold 8,225 units, which increased from 5,109
units sold in 2009. The continuous growth the company experienced in the next two years
prompted the company to establish a plan to increase its workforce by 1000 people in 2012. This
was a company's mission to increase its market by 80%. However, its market started shrinking
with the increase of competition from its rivals and changing people's preferences. As a result,
the company's market value and share were reduced to about 1.6%. In the following years, the
company experienced a decline in its business, prompting it to exit the Indian market in 2017.
Slide: 6

Speaker: The threat of substitutes is the availability of products and services that consumers
could purchase outside the known industry or market. The threat of substitutes is affected by the
industry's competitive nature. The higher the competition, the more the substitute products are
offered at reasonable prices. For example, the automotive industry is very competitive and and
the level of substitute products is very high. Many companies are producing the same products at
lower prices and with better technologies.
Slide: 7
Speaker: The automotive industry is very competitive, with many companies such as Maruti,
Mahindra, Tata Motors, and Toyota, among others competing for the same market of more than
one billion population. The threat of substitute products and services in the country is so high,
...

Related Tags