The increased globalization requires
every firm; to have unique strategies to enable the companies to have a competitive
advantage. This research focuses on challenges that face the General Motor
Company as it integrates its products and services across the border. The
exceptional attributes that a company needs to prioritize in order to increase
competitive advantages include a global coordination, global market awareness
and competencies and global orientation (Okpara, 2008). The study also examines
methodologies employed to investigate strategic marketing. Also, it outlines
approaches that can be employed to improve the marketing techniques of the GM.
General Motors (GM) firm is among the
world’s leading auto producers, that manufacture car, and trucks, with renowned
brands such as Chevrolet, GMC, Buick, and Cadillac. The strategy of market
development is considered company’s most important strategy in international
marketing. However, the approach contributes to growth in sales (Czinkota,
2013). Market development means establishing markets for a firm’s products
internationally and locally in areas, which GM does not have a presence yet.
The study employs structured,
semi-structured, in-depth interviews, and unstructured and discussions. It
chose to conduct a semi-structured interview of approximately thirty-five
respondents translating to twenty-eight General Motor staffs (Townsend, 2010).
The interview was structured in such a way that various groups of people
include members from corporate communication, human resource department, design
and styling management engineering, vehicle line executive, executive
leadership, and marketing and brand management. The interview helped the
researchers to acquire the first-hand information from all stakeholders and
shareholders on what they know about issues facing the GM Company and the
products they offer and the factors they think contribute to the stunted growth
of the company and what can be done to improve the status.
Snowball method with the human resources
team from the vehicle development team was conducted and provided the first
seven links and the ensuing respondents gathered from recommendations of these
Findings and Interpretations
There are cultural differences when it
comes to global marketing. No two cultures are the same. Culture defines
everything a society does or expects. Misunderstanding both the business and
social culture in another nation is a major challenge in the business arena.
cultures are depicted in many studies to be famous for their promotion of
independence, and marketing, and they are less inclined to be considerate and
respectful towards other cultures. Studies have shown that Western culture,
they have found, conditions citizens to consider themselves as exceedingly
independent entities. Proves indicate that Westerners have a tendency to focus
on inner objects more than on their environs. In contrast, Eastern cultures
emphasis interdependence. Researchers say that when Easterners take in a sight,
they have a tendency to focus more on the situation as well as the object.
Studies show that the level of
competition experienced in international markets is more complex and dynamic
than the one experienced in domestic markets. Competition worldwide exists with
the private organization. Due to increased and advanced technology, global
marketing face a major challenge because every business has access to the
internet and advertising becomes very simple.
The major competitors are the federal agencies which compete for
congressional fraud of funds yearly basis. This challenge can be solved by
ensuring an increased focus on providing quality customer to build the
business’ image. Also, training and top-down answerability are a necessary to
reduce competition issues. Accountability should focus on the spending. The
administration should be accountable and transparent to allow for restructuring
operations and identifying areas of opportunity within the organizational
model. Most business at international marketing level has acknowledged
inspections and audits and as means to improve accountability among the various
levels of the institution
Market intelligence in foreign markets
is different from that of domestic markets. It is difficult therefore to gather
certain information for some markets as domestic markets statistical agencies
may not be as sophisticated as foreign markets.
differences: No two states have similar legal
systems. Each country has its strategies relating to foreign products and
technology: The most efficient way to reach the
customer in the current world is not through the use of compound and intricate
websites and media sites but rather simplifying a client’s decision making by
providing what is essential for a customer to know and leaving the rest.
Research shows that companies who simplified their advertising and focused on
customer’s decision-making process had an assurance to sell off up to 86%.
Studies show that GM utilizes the approach through simple but efficient
advertising. The popularity of GM products can be attributed to GM’s
intuitiveness in their advertisements. GM’s advertisement increase
accessibility of its products to all clients worldwide. Although GM has
enhanced digital marketing in the social media platforms that include Facebook
and Twitter, it faces a major challenge from its competitors such as Ford
Company and Toyota. It is evident that
the company has not been able to give an opportunity for customers to display
their ratings and reviews on their timeline pages. This hinders its customers
to understand their needs since it does not provide the customer with all the
information about the product that is relevant to the decision-making process.
Failure to provide the customer with transparent information hinders the customer
from making an informed purchase decision.
management issues: After facing bankruptcy, the company
diverted into selling sports utility vehicles, which were huge and gas
guzzlers. It has been proven that this compromised on the safety and economy
and they could not orchestrate with the firm’s marketing policy. On the
contrary, its competitors such as Toyota were concerned about the atmosphere
and financed hybrid development.
Another challenge facing the company is
that Toyota is considered as a green company. Others including GM and its
brands are not considered environmentally friendly. Most of GM holdings such as
Buick, Pontiac, Chevy, Saturn, and Saab lacks uniform marketing strategies and
the few members of the purchasing public understand the GM’s point of sale and
where it differentiates itself from. On the contrary, its competitors such as
Porsche, Mazda, Nissan, Honda, BMW, and Toyota have a distinctive brand image
making their marketing strategies easier and with less competition.
Since GM lost its track, it has focused
on improving its marketing strategies to enable it to fit in the current
globalization (Vrontis, 2013). International branding may be the most
enthusiastically noticeable outcome of company tries to adjust to globalization,
as it is the aspect with which a company depicts an image to a more varied
client base. The instituting of international brands is also perceived as means
to conquer competitive trends by both universal and local entrants alike,
chiefly in emerging markets. For instance, Chevy is projected to be the GM
worth brand all over the world. Chevrolet brand is available in approximately
seventy markets globally.
Other strategies aimed
to improve the GM strategic marketing include:
technology: Due to the increasingly advanced
technology, standardization and adaptation approaches allows the companies to
meet the popular technology used to market its products.
competition in the fact reduces the preferences of a product. Adoption of the
approaches will make the company’s products unique; thus, increasing the
of cultural tastes and preferences: homogenization of products worldwide
reduces its preference and taste. Standardization and adoption approaches would
increase the preference of the products.
tools: Marketing tools used in foreign markets are an
advanced and differs from one market to another (Hitt, 2015). Standardization
and adoption approach by GM Company help the company to use the trendy tools in
marketing their products.
differences:It has been confirmed that increased
cultures in foreign markets hinder the distribution of products. Adaptation
helps the company to cope with such challenges and language barriers.
approaches help GM Company to achieve its objectives through;
their product at favorable and affordable prices that meet all clients’ needs.
the company to modify products that are designed differently for different
regions (Pride, 2010)
the company design new products, of high quality for international markets.
all market variations into one stretchy product design and introducing an
approaches increase the credibility between the buyers and sellers as they
allow the company to supply goods to that meets established standards at
affordable prices. This allows the company’s vehicles to be purchased quickly,
and this increases the company’s profits.