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General Motors Case Analysis
RUNNING HEAD: General Motors Case Analysis General Motors: Cadillac Case Analysis Situation Analysis In 1986, Lloya Reuss, who was the Executive Vice President of all North America car operations for General Motor (GM), set new goals for GM to achieve because the task before Reuss was an ominous one. In 1959, when Reuss joined General Motors, GM and Cadillac had huge changed. Also, during that time, the U.S. auto market belonged to the three domestic producers (GM, Ford and Chrysler), and Cadillac was the “standard of the world.” Yet, after 30 years, the domestic producers’ market share has decreased, and Cadillac’s competition was not only by domestic market but also by Asian and European competitors. (1) Nature of Demand The U.S. luxury car market can be classified into two segments: traditional and functional. Cadillac was one of the traditional types, so customers have demanded the best in traditional luxury cars. Indeed, these traditional Cadillac consumers were most often professionals, above average in income and education. Also, the average age of customers was 58 years old, and they were used to purchase the biggest and most powerful cars. However, the situation has been changed according to the demographics of 1988, it shows below: (12) Median Age %<35 Median % colleges Age Income Grad+ Cadillac 62 2.5% $61.1 38.4% Sedan de Ville 62 6.9% 61.0 40.3 Brougham 65 0.3 53.2 27.4 Eldorado 60 4.1 70.2 39.7 Seville 63 1.6 90.0 47.2 Allante 54 6.1 150.0 47.1 Cimarron 60 9.5 45.2 47.0 By different style of the cars that ... Please login to view comments from other users.
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