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Current Issue Assignment

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Submitted By shane99999
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1. Technology environment
GM to invest $14 billion in China within five years
Published on October 6, 2014 by Joey Wang http://www.carnewschina.com/2014/10/06/gm-to-invest-14-billion-in-china-within-five-years/ This news article discusses that General Motors will invest $14 billion in China over the next five years and open five new manufacturing plants to increase annual sales in the world’s largest car market to close to 5 million vehicles (Wang, 2014).

International diffusion of innovation this refers to the movement of new products to and within overseas markets so that they are available to customers in those markets. This is seen within this article as quote “it is vital for the company to be at the cutting edge of technological integration when it comes to its new models, so that it can become the worlds “most valued automotive company”. Gm motors has viewed china as a country with customers which wants more technology based cars and plans to implement this. The article also makes reference to China being a hyper-competitive market, so you can’t let up because things can change very quickly and this relates to the concepts of Awareness, interest, Evaluation and trial and adoption. This is the process under the international diffusion of innovation and can be seen within this article when it is stated that GM was one of the first companies to establish a research and development center in China. By developing vehicles specifically for the Chinese market it has given the company some insight and reputability within the country and helped them become more aware and able to implement new technology specifically for the Chinese consumer and build brand

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