Defenders; Prospectors; Analyzers; and, Reactors Essay

Defenders; Prospectors; Analyzers; and, Reactors - Essay Example Unequivocally, GM is a prospector as it has adopted a proactive approach in the industry. It focuses heavily on R&D function to create premium quality, authentic, reliable and safe want-satisfying automobiles (MSN report, 2010). GM’s strategy and approach is absolutely correct because of cutthroat competition among corporations such as Ford, Toyota, Honda, Nissan, BMW, Fiat, Daimler, VW etc in the global automobile industry. The intense competition among producers increases rivalry; therefore, each company focuses heavily on technological development, adaptability, value-addition, brand recognition and product differentiation to grab maximum market share. Hence, GM has to continue its marketing approach to ensure business growth and sustainability in future. The bargaining power of suppliers (raw material providers, machinery, spare parts etc) is medium because of recent improvements in global economy. The automobile demand is stronger in 2010 compared to extremely low demand in 2009. GM successfully posted profits in first two quarters, which has also improved suppliers bargaining power. The world has still not completely come out of recession; therefore, the threat of new entrants and investors is low. Also, this is an oligopolistic industry dominated by well-established giants with colossal financial, technological, human resources and managerial expertise. In addition, there are various barriers to entry such as huge investments, registration, licensing and advertising budgets etc., which reduce this threat. Chances of rivalry among competitors, in the form of price-wars, introduction of new products and after sales services, are very high because of oligopolistic nature as it corporation seeks to increase its market share. General Motors and its renowned global competitors would continue focusing on innovation, product and market development, quality maintenance and improvement, fuel-efficiency, differentiation, advertising