Question

General Motor established in 1908. That time the company was the sole carmaker dealer in the region, e.g. Michigan, first it was a holding Buick company, till 1920 it was becoming the world largest motor manufacturing company. However, General Motor is a fallen giant. Glory of the past from being a great market leader to bankrupt company General motors has come a long way. In 1980s GM was the top car manufacturer in the USA until the arrival of the Japanese cars. The Japanese sold cheap and better cars. GM failed to realize the change in the industry and technology and constantly lost market share to the Japanese companies.

what do you went wrong with General motors and what would've happen if they changed when Japanese arrived? (250 words minimum please)

Answer 1

Answer
The thing which went wrong with General Motors was that it was unable to realize the changing patterns of the customer requirement and gradually adopt itself according to the need of the customer. This is a common problem with most of the companies which become successful for a long time and gradually fail after sometime with the the advent of some other company.The examples of such companies include Nokia,Kodak etc. The reason for this is when the company becomes successful the overconfidence it has regarding its products and services makes it think that it does not require to make the shift in the change of the customer needs and it works in the market accordingly.
If the company changed according to the needs of the customers and came up with products which were rightly suited for the customers it would have easily been able to face the competition challenges of Japanese companies and able to create a good market share for itself. The fact is that changed never occurs immediately it gradually takes a long time for a major change to happen and even in this case it is not that Japanese company came and took over the market overnight, there was sufficient opportunities available for general Motors to work on the needs of the customer but it didn't work on it and gradually lost the market share Companies must always be very careful in determining the needs of the customers because customer regularly gives signals and it is the responsibility of the company to to identify these Signals and work on the signals to create better products for the customers.

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