General Motors- We stand together to drive the world forward. Everybody in.

Our goal is to deliver world-class customer experiences at every touchpoint and do so

on a foundation of trust and transparency.

GM is pursuing to maintain its status as the industry leader, they follow

some strategy.
General Motors Company's Generic Strategy (Porter's Model)
General Motors' generic competitive strategy is cost leadership. Based on Porter's
model, this generic strategy creates competitive advantage based on the attractiveness
of low costs and corresponding low prices of products.

GM strategy:

General Motors' sustainability strategy is synonymous with its business strategy: to

deliver safer, simpler and sustainable transportation solutions for our customers. This
will result in a world where sustainable transportation is a reality for daily life and
enables communities to grow more prosperous and livable.

GM operates under the core competencies of technology, leadership, large scale

operations, and product/research development and hence its business strategies must be
aligned to match its resources and capabilities.
GM biggest competitor:
General Motors's top competitors include Ford Motor, Tesla, Toyota, Fiat Chrysler
Automobiles, Daimler and Volkswagen. General Motors is a multinational corporation
that designs, manufactures, markets and distributes vehicles and vehicle parts.

GM's marketing strategy:

General Motors' objective in the market-oriented pricing strategy is to set competitive
prices based on the prevailing prices of automobiles in the global market. For example,
many GM automobiles are priced according to the price ranges of competitors.

GM corporate level strategy:

“General Motors' corporate level strategy creates a self-sustaining cycle of reinvestment
that drives continuous improvement in vehicle design, manufacturing discipline, brand
strength, competitive pricing and margins.” (General Motors).

GM's target market:

GM targets middle- class consumers with its Chevrolet range and for wealthy
buyers GM offers vehicles under Cadillac. Chevrolets target market is 18 34 years old
and the.

If recent auto headlines illustrate anything, it's that General Motors Co. is officially
back on its game — and it's not planning on going anywhere anytime soon. Posting
impressive sales figures, rejoining the S&P 500 Index, and buying back shares from the
U.S. Treasury — it has been a good summer for the U.S. automaker.

However, the car company can't revel in its newfound success for too long, because the
market is turning and new rivals (read: Elon Musk) are popping up everywhere. But
fortunately for GM, its chief executive officer Dan Akerson seems to understand the
key to perpetuating this lucrative sales prosperity, and he doesn't plan on resting until
GM is back on top as the world's largest automaker.

Here are the six ways that is helping GM its way back to victory.
1. Redesign rate GM is currently in the midst of orchestrating a full-on product
makeover, and the automaker understands that speed is of the essence. Luckily for
Akerson, GM is tied with Ford Motors Co. for the fastest redesign rate in the industry,
giving it the ability to replace about 24 percent of its sales volume each year with new,
fresh models.

According to Automotive News, GM's product overhaul is expected to extend all the

way through 2016 as the U.S. carmaker continues to work to increase the depth and
breadth of its offering, effectively appealing to a wider variety of its consumers' tastes,
and additionally adding billions to its bottom line.

2. Cadillac expansion In addition, GM is working on pinpointing weak spots and the

sectors where its competition has it beat. The automaker especially has its sights set on
the luxury market — a sector where rival German automakers thrive — as a place
where GM can especially improve as it works to fortify its Cadillac brand and expand
its portfolio.

This expansion includes the planned introduction of a large rear-wheel-drive sedan and
the launch of 10 new or redesigned Cadillac models by mid-2015, and according to
Morgan Stanley analyst Adam Jonas, "The sense of urgency appears high."

3. Eye on the electric car One of the keys to GM's success is its ever-present eye on the
evolution of the auto industry. Though the automaker has long been known to reel in a
majority of its sales success from its line of appealing full-sized pickup trucks and sport
utility vehicles, Akerson and his team now realize that with the rising volatility of oil
prices coupled with the evolution of small, fuel-efficient cars, GM has no choice but to
jump on the clean-energy, electric car train if it wants to keep up with its rivals — even
if that means refocusing its attention off its higher profit margin products.

GM plans to put 500,000 vehicles on the road with "some form of electrification" by
2017, according to its 2012 sustainability report. In addition, the carmaker also is
preparing to refurbish about 70 percent of its brand in 2012-2013, being sure to roll out
vehicles that are more appealing to consumers who are increasingly aware of the
direction that higher oil prices are taking the auto industry.
4. Not so fast, Elon Musk And you can't talk about the evolution of the electric car
without mentioning Elon Musk — a reality that Akerson understands and is working to
combat. The CEO is committed to ensuring that Musk's 10-year old company isn't on
its way to disrupting GM's 104-year-old business, and that's why Akerson has assigned
a task force to study Tesla to help him understand how and why the electric carmaker is
resonating so well with consumers.

Akerson hopes that with this new knowledge, he can better compete with Tesla and the
Model S, as he works to up his company's style, performance, and price offering.

5. First half sales results So far this year, things are looking good for GM and Akerson,
with sales shaping up to be on track. The automaker recently released its first half sales
report, illuminating that GM sold 4.85 million vehicles in the first six months of the
year, reflecting a rise of 3.9 percent.

GM has especially been posting impressive figures in China, and this overseas success
has helped outweigh losses the car manufacturer has had to sustain in Europe due to the
region's economic crisis. GM still continues to be sandwiched between Toyota Motors
Co. and Volkswagen AG in the race for world's largest automaker status, but the U.S.
carmaker's latest reports are now officially giving Toyota reason to worry.

6. Volkswagen who? Speaking of Volkswagen, the latest reports reflect that the
German automaker's China sales are now only a figure in GM's rearview mirror.
Thanks to an increased demand for Buick and Cadillac vehicles, the U.S.
automaker outsold Volkswagen in China in the first half of the year, reporting 1.57
million deliveries, compared to Volkswagen's 1.54 million.

GM has now officially lead in annual sales in China among foreign automakers for nine
straight years, proving that an expertise in the luxury market can't keep GM from
eclipsing Volkswagen in the region's sales.
Toyotas strategy to overtake GM:
Toyota uses product development as its secondary intensive growth strategy. This
intensive strategy supports Toyota's growth by attracting customers to new products.
The company uses this intensive growth strategy in the form of rapid innovation. The
company is known for its innovation processes.

Toyota Motor Corporation’s generic strategy supports the company’s global growth.
Founded in 1937, the firm is now a global force in the automobile industry. This
success is based on the effective implementation of Toyota’s generic strategy and
intensive growth strategies. This generic strategy represents the overall approach
Toyota uses to compete in the global market. On the other hand, the intensive growth
strategies define the types of actions that Toyota uses to ensure continued growth. The
company’s continued innovation and success is an indication of the fulfillment of these
strategies. Toyota is effective in the simultaneous implementation of its generic strategy
and intensive growth strategies.

Toyota’s generic strategy determines the company’s overall approach in the global
automotive industry. The intensive growth strategies are applied to ensure Toyota’s
continued growth in markets worldwide.
Toyota’s Generic Strategy (Porter’s Model)
Toyota Motor Corporation’s generic strategy is a combination of the cost leadership
generic strategy and the broad differentiation generic strategy. Cost leadership entails
minimizing cost of operations and selling prices. On the other hand, the broad
differentiation generic strategy requires developing business and product uniqueness to
ensure Toyota’s competitive advantage. The combination of these generic strategies
supports Toyota’s global reach in all market segments.

A strategic goal corresponding to Toyota’s generic strategy is to minimize production

costs to attain cost leadership. The company does so through the just-in-time (JIT)
manufacturing method, which is also known as the Toyota Production System (TPS).
This method addresses Toyota’s generic strategy by minimizing waste, inventory cost,
and response time. As a result, the firm achieves maximum business efficiency. On the
other hand, Toyota has the strategic goal of innovation to address the broad
differentiation component of its generic strategy. Innovation leads to unique and
attractive products for all market segments. Thus, Toyota fulfills its generic strategy.

Toyota’s Intensive Strategies (Intensive Growth Strategies)

Market Penetration. Toyota’s main intensive growth strategy is market penetration.
This intensive strategy supports business growth by reaching and attracting more
customers in the firm’s current markets. To fulfill this intensive growth strategy, Toyota
ensures that it offers products for every market segment. For example, the company has
sedans, trucks, SUVs, luxury vehicles, and other product lines for every type of
customer. This intensive growth strategy supports the cost leadership component of
Toyota’s generic strategy by enabling the company to maximize sales volume, which
ensures profits despite relatively low selling prices.

Product Development. Toyota uses product development as its secondary intensive

growth strategy. This intensive strategy supports Toyota’s growth by attracting
customers to new products. The company uses this intensive growth strategy in the
form of rapid innovation. The company is known for its innovation processes. For
example, through the Toyota Prius, this intensive growth strategy empowers the firm to
attract customers concerned about the environment. This intensive growth strategy
supports Toyota’s broad differentiation generic strategy by using innovative products
that are attractive on the basis of uniqueness or advanced features.

Market Development. Toyota already has a global presence. As such, market

development is just a supporting intensive growth strategy for the business. In this
intensive strategy, Toyota grows by entering new markets or selling to new market
segments. However, the company already has presence in most markets around the
world. Also, the firm already sells its products to every market segment. This intensive
growth strategy supports Toyota’s cost leadership generic strategy by maximizing the
company’s global market presence.