These factors had negative impact on the car makers

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Unformatted text preview: factors had negative impact on the car makers and the factors that shape customers¶ buying decisions. This resulted in the delayed consumer purchasing or leasing decline in the vehicles sales around the globe. The estimated worldwide market share of General Motors was 12.4%, 13.3% and 13.5% in 2008, 2007 and 2006. These negative factors have had a drastic effect on the General Motor¶s largest market. United States. Despite these economic conditions affecting the United States in 2008, General Motors have maintained the largest market share in the United States. The company took few strategy wise changes to cope with issues relating to the declining sales and market shares. GM decentralized the decision making process to get the quick decisions in times of need. The managers running the branches across the globe are empowered to make critical decisions on company¶s behalf. The company revised its marketing goals and devised new marketing plans. It is involved in providing innovative products to the consumers with environment friendly cars. The competitive advantage of General Motors lies in the innovative cars it produces. TOYOTA MOTORS Toyota took over the US market with low cost automobiles to compete with the then market leaders; General Motors and Ford. It competes to serve the different market segments. Toyota products are considered to be efficient as compared to other models in terms of fuel consumption and have captured huge market segment. Toyota is also engaged in other business lines to support its business. Toyota has secured large market share in US and Japanese. Its various vehicles are well liked in the developing markets for their efficiency and reliability. Toyota has quite a few car companies in the developing markets like Russia, China or India which gives competition to it. Toyota cars are sometimes out of the range of the people in these developing markets so these small scale regional companies are better available options to them. Toyota¶s competitive edge lies in its efficient and reliable products. FORD¶S COMPETITIVE ADVANTAGE After many decades, the company launched a new strategic plan in 2000 to focus on the 21st century. The new strategy was aimed at increasing the market share, increase the revenues earned and production of smart cars with fuel efficiency. Ford implemented the centralized decision making system. This allowed the company to concentrate on the available market opportunities both locally and internationally. With the implementation of centralized decision making system, the top management becomes more engaged in the development of products to satisfy the customer expectations in various markets (Porter, 1986). This strategy allowed the company to improve the communication system from top to bottom. Ford Motors adopted the strategy that allowed it low production cost by cutting all the excessive cost involved in its operations. The huge expenditure on raw materials was cut down and the online manufacturing process was introduced that focuses on the development of cars on one process rather than having different segments of engineering and production. This...
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This document was uploaded on 03/17/2014.

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