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Gm Case Study Analysis

In: Computers and Technology

Submitted By SrujanaPingili
Words 1862
Pages 8
General Motors: Building a Digital Loyalty network Through Demand and Supply Chain Integration

Main Takeaways

Although GM had experienced record sales in recent years, the stock underperformed the S&P 500 index by 48 percent, which was an indication to Rick Wagoner (CEO) that something needed to be done. Although GM saw incredible cost savings and improved productivity, I feel that they have not retained any sustained competitive advantage with respect to the competition (Honda and Toyota), in fact, one might say that they have just caught up to the competition. I believe GM is on the right path since they now have the infrastructure needed to succeed in such a competitive market but have a long way to go to excel not just at operations but as a product leader.

Value Proposition
Operational Excellence (arguably still not as good as foreign competition)
Product Innovation (very limited to investments in OnStar and XM Satellite Radio)
Customer Intimacy (best of the 3, increase in loyalty and online tools show Customer Intimacy)

More in-depth Summary

American Auto industry problems • GM decides to strengthen and integrate GM’s demand and supply chain systems to build the Digital Loyalty Network (DLN). It addressed 3 components o “digital” for integrating technology o “loyalty” for a focus on customers and increasing their lifetime value to GM o “network” for coordinating and leveraging all supply and distribution chain partners to serve those customers. • Current supply chain for the US auto industry in the early 2000s was extremely complex, with a global network of suppliers, long development cycles, extensive production and assembly processes, and an expansive sales distribution network of independent dealers. Several automakers experimented with additional vehicle inventory and distribution points to...

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