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Microeconomic perspective

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Need help with completing a competitive analysis of General Motors (GM) position from a microeconomic perspective based on the pricing of the organization's primary product or service line, an assessment of its cost structure, and an assessment of the market in which the organization competes.

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Need help with completing a competitive analysis of General Motors (GM) position from a microeconomic perspective based on the pricing of the organization's primary product or service line, an assessment of its cost structure, and an assessment of the market in which the organization competes.

Pricing of the organization's primary product or service:
After 9/11, GM feared a fall in demand for cars and began offering rebates of $3,000 with zero interest financing. There were matching price cuts by other manufacturers especially Ford and Chrysler and GM discounts increased reaching a peak of $8,000 on some vehicles.
The situation was such that when any manufacturer reduced its discounts its sales fell. Another factor that developed in 2006 was the sudden increase in the complementary product of car, or an increase in gasoline prices. GM was forced to reduce the prices of its SUVs by almost 30%. Other reductions continued. For instance, Chevrolet SSR had a cut of ...

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Hatim Baxamusa, MBA
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  • BSc , University of Calcutta
  • MBA, Eastern Institute for Integrated Learning in Management
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