Question

In: Accounting

. Explain General Motor’s generic and intensive strategies

. Explain General Motor’s generic and intensive strategies

Solutions

Expert Solution

General Motors Company has a generic strategy that ensures competitive advantage surrounded by increasing competition in the global automotive industry. Michael Porter’s model indicates that competitive advantage is created through a generic strategy that the company effectively applies in relation to variables in the target market.

In this case, General Motors’ generic competitive strategy emphasizes the benefits of economies of scale, which is one of the company’s strengths.

The firm also employs intensive growth strategies based on the business effects of such generic strategy. Each intensive strategy contributes to the growth of General Motors. However, these intensive growth strategies have different degrees of significance in the business.

The generic competitive strategy must match the needs of the organization, while considering the external business environment. The effectiveness of General Motors’ intensive growth strategies influences how the business grows.

Following are the strategies applied by General Motor’s:

General Motors Company’s Strategies
Generic Strategy Intensive Growth Strategies
1. Cost Leadership 1. Market Penetration
2. Product Development
3. Market Development
4. Diversification

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