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This memo presents a new strategy for Saturn management to capitalize in its initial success by expanding its product line and maintaining its high differentiation in quality service. Saturn should keep being innovative and improving their quality service of the market, while maintaining a reasonable price of its cars. Customers can get a car at affordable price (compared to Japanese cars) plus the highest customer service available in their market. Since Saturn first entered the small car market as a late entrant in the 1990s, it has achieved a list of impressive achievements. ... Saturn is also well-known for its high customer and dealership satisfaction, making it the most profitable subsidiary of General Motors. This memo will assess each of Saturn’s strategy alternatives, which are increasing market share in Japan, remaining as it exists today with General Motors, and expanding its product line with the introduction of larger or a sport utility model. Then, we will present the cost and benefit of each alternative, from which we derive our recommendation, which is to expand its product line.
Strategy Alternatives for Saturn
Since 1994, sales has declined as competitions from import compacts and sport utility vehicles, as well as falling fuel prices, hurt Saturn’s competitive position.
Approximate Word count = 931 Approximate Pages = 3.7 (250 words per page double spaced)
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