MGT 3660 Lecture 5: Case Study - General Motors in China
2 Dec 2015
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Document Summary
Gm entered the chinese market at a time when demand was very limited. What was the strategic rationale: although the market was tiny at the time, gm was attracted by the enormous potential in the populous, economically growing country. What are the potential risks here: they needed to partner with saic because gm lacked knowledge and connections in china. Also, chinese government regulations made it nearly impossible for a foreign automaker to go it alone in china. The benefits of making such a large investment is having competitive advantage in that market. Why did it not export cars from the united states: gm understood that the chinese market is very different from the. American market, therefore they needed to work with saic to create and develop vehicles that were specific to the local market.
