Government College University, Lahore
Government College University, Lahore
Government College University, Lahore
2. Being the production manager of General Motors, what new product would you
launch and why? Also what will be your corporate strategy and target market in this
case? Explain your answer with logical justification
As a production manager of GM autos firstly I will identify my target market and then
assess what are they lacking in motor industry. My target market is elite class and the
product I am going to launch is fully electric sports car, because sports cars consumes fuel
according to their RPM and the miles they can achieve in a tank can be achieved in a single
charge on an electric motor engine. From past decade the evolution of automobile industry
went very fast, from Gas engines to hybrid technology and then fully electric. fully electric
sports car will be a new trend in market because they are less costly than other cars and
they have electric motors instead of an engine, they just need to be charged and very less
maintenance required. Differentiation strategy is applied because the car will have a total
different engine type with no harmful emissions, less costly and no fuel usage. this
inspiration is taken from Tesla motors that they are producing fully electric Sedan cars and
we are going to launch fully electric sports car.
3. Since General Motors is planning to launch a new product “i.e. A Sports Car” for
high end customers/ elite class, so manufacturing in low volumes could have lower
cost but high volumes needed a more appropriate technique for cutting material and
producing new product. Which would be the best strategy at launch in June 2021
during Covid-19 and WHY? Consider a real time example of a firm or its product
(e.g. Nestle, Coke etc.) then relate and explain answer of this question through your
example. (Example is mandatory)
As GM are producing low number of units they have to make it less costly because in
Covid-19 the production costs are usually high. The raw material is getting 2x higher in
price and workforce is decreasing due to this pandemic. Thus the strategy should be Low
Cost and low production because they have to reduce the demand according to the
circumstances. they should stick to low cost and low production, if they push the
production they will result in late deliveries and uncontrolled costs because it's a global
implementation of 50% less workforce during covid-19. For example: Changan recently
launched a sedan "Alsvin" they used the same strategy of low production and low cost and
their units sold out in just 6 days. their price was comparatively less than their competitors
and has more features. this launch took place in Pakistan. just as GM should stick to their
strategy of low cost and low production.