General Motors vs. Toyota

Paper Summary:

This paper discusses the market strategy at Toyota and General Motors. It bases its discussion on issues of quality, efficiency and utility within the organizations. After discussing each company individually, the paper compares the two companies with each other. It concludes that General Motors needs to improve various aspects of its business if it wishes to remain competitive in the automotive industry.

Table of Contents:
Industry Overview
Working Hypothesis
Definition of Terms
General Motors
Overview
GM's Market Position
Toyota Motor Company
Overview
Toyota's Market Position
Conclusions & Recommendations
Conclusions
Recommendations

From the Paper:

"The automotive industry in North America and specifically GM is heavily unionized and has served to increase the wages and benefits of the industries workforce for many years (Oughton). This massive cost overhead in tandem with the generous retiree benefits package is largely responsible for GM's cost overhead per vehicle that makes it unable to compete on price with the import companies. These cost factors ensure that GM must attempt to try and consolidate its brand structure into fewer offerings as has begun to do with its closing of the Oldsmobile line in 2004. Many market pundits believe that for GM to return to profitability it must first: 1) reduce its product line-up, 2) renegotiate union contracts to better terms, and 3) shutter some manufacturing facilities across all markets (Beucke, et al pars.38-40). Any other strategy that attempts to avoid these measures is certain to result in continued market declines."

Sample of Sources Used:

• Beucke, D, et al. "Why GM's Plan Won't Work...And The Ugly Road Ahead." Business Week, 3923(2005): 84.
• "General Motors Corporation SWOT Analysis." Datamonitor, April, 2005. Global auto dealers. (2004) Auto Dealers Industry Profile: Global.
• Maynard, Micheline and Fara Warner. "Toyota Passes Ford in U.S. Vehicle Sales." International Herald Tribune, August 2(2006). Jan. 15, 2007<http://www.iht.com/articles/2006/ 08/02/business/auto.php
• "New Cars in the United States-Industry Profile." Datamonitor, 0072-0358, Oct.(2005).
• Oughton, C. Industrial policy and economic development. In Industrial and Labour Market Policy and Performance: Issues and Perspectives, Coffey, D. & Thornley, C. (Eds.) (pp. 9-28). New York: Routledge; 2003.

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