4 - General Motors Defense

4 - General Motors Defense - Issue Which arrangement would...

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Issue: Which arrangement would result in the greatest likelihood of success for General Motors Defense (GMD)? Technology: Known for their integrity in dealing with clients and for their quality product, GMD’s technologically advanced light weight 8x8 armored vehicles have a strong competitive advantage against General Dynamics (GD) and United Defense (UD). Although the associated cost with GMD’s vehicle is relatively higher than their competitors, GMD is technically capable of designing and manufacturing the 8x8 armoured vehicles in their current production facility. In addition, partnering with GD would mean having to share GMD’s technological information regarding the 8x8 vehicles. Not only would this have a detrimental affect on the GMD’s long term future, but GD could possibly utilize this information for personal interest and as a result position them within GMD’s capabilities and become a major threat. Politics: GMD’s two major competitors have strong political relations to the U.S. Army. Despite GMD's technological advantage, this will not necessarily win them the contract. As evident from the U.S.
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