General Motors, Lexus, Gmc And Cadillac As A...

INTRODUCTION A. Context General Motors, an American borne company established in 1908, designs, builds and distributes a wide range of cars, trucks, crossovers and automobile parts worldwide. The company’s automotive operations adhere to the demands of consumers stationed internationally through its four primary automotive regions: GM North America, GM Europe, GM International Operations and GM South America. GM North America targets and serves the demands of customers based in North America with vehicles manufactured and marketed under the Buick, Cadillac, Chevrolet and GMC brands. The demands of consumers outside of North America are primarily met with vehicles manufactured under the brands Buick, Cadillac, Chevrolet, GMC, Holden,†¦show more content†¦Primary assumptions to the theory include, high barriers to entry and exit, high sunk costs and imperfect knowledge of the market. In addition, this paper will analyze the company’s current standing in the market along with competitive strategies executed to grasp a greater portion of market share. C. Relevance and Reason for Selection of Topic The reason I chose to analyze this market is because I have worked alongside a GMC employee on a customer relations project introduced last year by the company. I was intrigued with the company’s commitment to ‘keeping customers for life’ and their various promotions and incentives offered to do so. I am eager to apply the concept of oligopolistic markets to this market that I can readily access. D. Approach In assessing the market structure in which General Motors is operating in, I will outline the central assumptions and resulting implications of the oligopolistic market structure. I will study both the current competitive behavior of General Motors, as well as sales and cost statistics to determine whether they correspond to the characteristics of firms operating in an oligopoly. I will also examine the