The GM is generally known as General Motors trying to enter the Chinese market. The major reason for this strategy is the saturation in US and other developed markets. Also, they face stiff competition from Japanese firms. In China, the higher population and the higher GDP growth may increase the market demand for GM. Also, there is limited competition in the Chinese market, so they get a first-mover advantage.
GM entered the Chinese market at a time when demand was very limited. Why? What was the strategic...
GM Is Building Cheap Cars for China’s Masses (Bloomberg, May 2018)… GM-SAIC joint venture strategy is to design car explicitly for the Chinese market. Why did GM not simply license its technology to SAIC? Why didn’t it export car from the US? As of 2018, GM appears to be increasing its strategic commitment to China, what are the benefits of this approach? What are the potential risks?
How important are non-U.S. sales to GM? What implications does this have for GM's global and business strategy? Think about the integration response framework to inform global strategy and different strategic positions to inform business strategy. In 2014, GM held almost 15 percent market share in China, while Ford held only 3 percent. Why was GM so successful in China, while some of its rivals, including Ford, struggle to gain a stronger position in the world's largest automobile market? What...
Why is strategic capacity planning important to a company? What are the time durations for capacity planning, and which one provides the greatest value for strategic capacity planning?
Supply and demand of labor market is very similar as supply and demand of goods and service market. The difference is the focus: labor. So the price of labor market is wage rate and quantity represent the quantity of labor hour. Just as other S&D factors, price (wage rate) change will not affect the labor supply or demand. factors other than price (wage rate) will shift the supply and demand. Since demand for labor is from companies, you must take...
Disney World recently instituted strategic prices, charging park attendees different prices based on the time of year. This has caused overall attendance at the park to decrease, but overall revenue to increase. How does the concept of elasticity explain why Disney implemented strategic pricing, and what the results were? Identify types of elasticity. Analyze how price elasticity will affect changes in quantity and total revenue when supply and demand change.
Read Mini-Case #22 entitled, “ Does GM’s Future Lie in China? . Consider the implications of this case and apply what you have read to the following questions. How important are non-U.S. sales to GM? What implications does this have for GM’s global and business strategy? Think about the integration-response framework to inform global strategy and different strategic positions to inform business strategy. In 2014, GM held almost 15 percent market share in China, while Ford held only 3 percent....
When Keurig entered the market, they were the only supplier of K-cups. Graph the supply / demand curve and label the equilibrium (E1). As the coffee makers increased in popularity, more manufacturers entered the K-cup market. Graph this and label (E2). Environmentalists then brought attention to the amount of waste created by K- cups. Graph this impact and label (E3). Discuss the resulting price and quantity.
1. Why does the market for toothbrushes have more inelastic demand and the market for automobileshave more elastic demand? 2. The following are the demand curves for the two consumers that make up the market for automobiles. (a) P = 60 - 10Q (b) P = 60 - 15Q What is the market demand curve for the automobiles? Show the market demand in equation and graphical form . (remember that before adding together the demand curves, to express the market...
Why is the distinction between a movement along the demand curve and a shift in demand important? What do you think are the managerial implications? Discuss your rationale.
What happens to the market demand for McDonald’s hamburgers when ______? -McDonald’s reduces the price of its hamburgers, while the price of Burger King’s hamburgers remains unchanged The question presents a change in the demand environment for McDonald’s hamburgers. The assumption of "ceteris paribus" (other things being equal) is made in each case. For each question, you should begin by drawing a typical market demand curve for McDonald’s hamburgers. For each question, you must both explain your answer verbally and...