GM’s E-Business Strategy (Page 2)

Abstract

The case gives a detailed account of e-business strategy of General Motors (GM), the world’s largest automobile manufacturer. It further explores the need and rationale for GM to adopt e-business in its operations. The case examines the e-business initiatives of GM introduced in its supply chain and demand chain and analyses their impact. Finally, it discusses the drawbacks of GM’s e-business strategy and debates on its future prospects. The case attempts to highlight the impact of e-business on the operations of an old economy automobile manufacturer.

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UIt also wanted to position itself as a provider of Internet-based information services and a major player in the e-commerce arena. Commenting on this, Computerworld magazine quoted, "GM wants to be more than your car company. Think in-car, real-time stock quotes, talking e-mail messages and video games.

Commenting on this, Derek Slater, Executive Editor of CIO Magazine said, "Can e-business make a difference for an old economy, big and slow manufacturer the way it can for nimble, information-based businesses?" Raising similar doubts, an Internet World magazine article queried, "Will Internet hardware and services become GM's best products? And this in turn raises this question: Will Internet services become GM's core product some day?".

NEED FOR E-BUSINESS STRATEGY

With the advent of the Internet wave in 1999, GM wanted to reposition itself strategically. It wanted to make use of its vast customer base and huge assets to emerge as a leading player in the new economy businesses of entertainment and e-commerce. The 1999 annual report of GM stated: "Besides mergers and acquisitions, there is no bigger trend in business today than that towards electronic business. ...

        Case Code   ITSY049
   Case Length    14 Pages
              Period    1998-2005
 Organization     GM
        Pub Date     2005
Teaching Note    Not Available
     Countries    US
      Industry    Automobile

Issues

• E-Business strategy implementation across an organization’s value chain.

• Rationale and benefits associated with e-commerce initiatives an automobile company.

• Channel conflict arising from e-business initiatives.

GM,E-Business Strategy, Internet Services, In-vehicle Communication Products, Covisint, TradeXchange, E-Supply Chain, SupplyPower Portal, GMAC BuyerPower, OnStar Communication System, E-Business in Automobile Industry.

Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.