Question

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 are the challenges GM is currently facing in the Chinese automobile market? How should GM's CEO address them? Be specific.

Answer 1

answer-

non-U.S. sales to GM are important especially in china because GM already dominate the US market so, there are not much growth opportunity for GM in america .With a population of 1.4 billion and currently only 11 vehicles per 100 people—compared with a vehicle density of 81 per 100 in the United States—China offers tremendous growth opportunities for the automotive industry. Since China joined the World Trade Organization (WTO) in 2001, its domestic auto market has been growing rapidly and has now overtaken the United States as the largest in the world.

this helps the GM to expand the business over the outside countries & grab the market share as GM's global and business strategy.Unlike some of its main rivals, GM entered the Chinese market early. In 1997, GM formed a joint venture with Shanghai Automotive Industrial Corp. (SAIC), one of the “big four” Chinese carmakers. SAIC is one of the largest companies worldwide and ranked 60th on the Fortune Global 100 list. Over almost 20 years, GM was able to develop guanxi— social networks and relationships that facilitate business dealings—with its Chinese business partners and government officials.

In 2014, GM held almost 15 percent market share in China, while Ford held only 3 percent. GM was so successful in China, while some of its rivals, including Ford, struggle to gain a stronger position in the world's largest automobile market because GM made joint venture with chinese auto manufacturing companies & Some 70 percent of GM’s revenues are now from outside the United States. This is quite a high level of globalization for a company that once was focused on the domestic market only. GM sold more than 3.6 million vehicles in China, 37 percent of total GM cars sold. The Chinese market is becoming more and more important to GM’s performance, accounting already for almost 30 percent of total GM revenues of some $155 billion (in 2014).

the challenges GM is currently facing in the Chinese automobile market-

the slowdown in the Chinese economy combined with devaluation of the Chinese currency (the yuan), the competitive intensity in the world’s largest automobile market is becoming more intense.

several government-supported domestic car manufacturers in China are initiating a cut-throat price war to gain market share and with it scale. In contrast, low gas prices in the United States have fueled high demand for sport utility vehicles (SUVs) and trucks, where GM and Ford hold strong positions.

GM should focus on providing low cost product & environment friendly vehicles in the market. CEO of GM should also take support from chinese government to provide financial & legal support to the company.

*as EA, i can answer one out of multiple questions but i tried to answer all for your help.hope these answers would help you.good luck & rate.pls