Research Aim and objectives This research aims to find out the failure reason of General Motors Marketing strategy in India and recommend suitable strategy for successful implementation. Objectives To review the extant theoretical frame works and conceptual models related to Marketing strategies in developing countries. To investigate the failure reasons of strategy implementation of GM in India To examine the various ways for successful Marketing strategy implementation.
To recommend the suggestion for improving the marketing practice. Research Question What are the factors associated with failed and successful strategies? Justification: General motors is one of largest auto makers in the world. Since 1908 they kept their ranking on the top level. It employs 209000 employees in 31 countries. And they have branches and business dealings more than 120 countries. In the last century, GE’s strategy was best among the industry, and those strategies are become a model for modern companies for developing strategies.
Many auto makers are forming and strengthening alliance with Japanese car makers in order to penetrate fast growing Asian market. The speed with which the new strategies delivered results indicates that the company’s successes were not due to a major new product or service launch, major new capital investment, or even the development of new intangible and “intellectual assets”. In this fast moving economy, organisations need to develop strategies according to the different situation. In this competitive world, organisations need to develop competitive strategies for survival.
So all failed strategies are a new lesson for other companies. So here they are getting the chance of learning and development. Here researcher analyse the drawback of GM’s marketing strategy in India and try to recommend some good marketing strategies with the help of modern strategic theories, which will help the organisation become success in Indian market. Limitations This research has few drawbacks like any other research. First of all, face to face interviews could not conducted, which could have given more accurate information.
Because this research incident happened in India. Limited number of participant in this research also need to consider as a limitation of this research. Moreover integrity of participant been questioned, as few of them were seems to have bit of fear and hesitation for giving details. So these answers may not be correct. Back Ground of the Study Strategies are back bone of the business. By the end of twentieth century, progress in information technology had become the strongest and most pervasive force for strategic change in business throughout the world.
Generic international marketing strategies include ways of entering foreign markets which are broadly similar to strategies used in the domestic market and other strategies adapted for various reasons to the requirement of foreign market. Year of 2009 witnessed lot mergers and 2010 witnessed corporate collapse due to the economic downturn. So need for the suitable strategy always exist in the business. Companies started learning from the market. Here GM’s failure in marketing strategy introduction in India was a lesson for other companies and corporate.
Many companies are successful in international markets because they avoid market entry barriers by changing the accepted business structure. They offer competitive product through different distribution channels, the internet or direct marketing, thereby passing foreign wholesalers and agents. Perhaps a more powerful alternative strategy is to build more reliability in to the firm’s product which can overcome service network barriers. While most successful firms adopt a strategic approach in international markets, some firms enter them in an opportunistic way.
GM has taken this way of marketing strategy in India which will be discussed on later stages. Literature Review This chapter will reflect on the different concept and models of strategies, and it will reflect the failure reason of marketing strategy in India and its consequence. Also it will examine the various ways of successful strategy implementations. It spotlights an explanatory depiction on background and reviews of the various ways to characterize the practice. The 1980’s were the decade during which strategy became a fullfledged management discipline.
Many of the early tools and techniques of strategic planning were replaced by more sophisticated, more appropriate, and more actionable approaches. Increasingly, both business units and corporations must compete globally. Global strategies involve not only selling world wide but also producing and even conducting research in more than one location. Many strategic issues are the same regardless of whether the company competing in one nation or many. It is still essential for a company to understand the structure of its industry and position itself to gain sustainable competitive advantages.
The meaning of strategy for international firms refers, therefore to an integrated set of actions taking account of firms resources aimed at increasing the long term wellbeing of the firm through securing a sustainable advantage with respect to its competition in serving customer needs in domestic and international market. The development of marketing strategy takes place in the context of a constant process of change. Not all companies are able to adopt a standardised strategy as its appropriateness varies from industry to industry.
The international marketing environment is a complex constellation of demands and constraint which the firm faces as it attempts to compete and grow. Identifying customer values in international markets requires a sophisticated understanding of differentiated expressions of customer needs, many of which are influenced by culture. Similarly the task of communicating the values provided and their delivery in international markets is complex, requiring a great deal of understanding of environment and its influences.
Recent article story from the website shows that 46% of the business catastrophes studied in one survey stemmed from misguided strategies, not from bad luck or poor execution. The best solution for preventing bad strategies from being executed is to introduce disagreement into the strategy setting process. (http://www. chiefexecutive. net/sc/leadership/articles/failed_strategies/) In his book of strategy Michael porter shows that the essence of strategy formulation is coping with competition.
The state of competition in an industry depends on five basic forces, such as Bargaining power of suppliers, Threat of new entrant, Bargaining power of customers, Threat of substitute product, Current competitors etc. Types of Data This research held with the support of both primary and secondary data. All researches require lot of data’s to reach on one conclusion. In this research, researcher planning to utilise the primary data as first source of information and secondary for backing up the primary data. Methods of Data collection As part of collecting primary data, this research used Interviews, Questionnaires and networks.
Questionnaires: Here researcher sent questionnaires through email and participants were asked few objective type questions. Once they finish the application, participant will send back as an email reply. As direct interview was not possible, email questionnaire was the main source of information. Interviews: Here researcher conducted telephone interviews as direct interview was not possible. Here researcher conducted interview with few managers, executives & band 5 employees. Networks: Good friend net work helped the researcher to retrieve more informal information, which helped to back up all answers.
As part of collecting secondary data, researcher have used websites of the company and other news website which have given trusted information. Moreover new papers, marketing week, Business today also helped the researcher to gather lot of information, which can use as a backup of primary data. Observation need to consider as authentic source of information. Because researcher’s observation can provide more honest information, which can trust. Here secondary data helped to provide support of primary data. Researcher used both primary and secondary data for this research.
Predictions This research will explore various concept of the modern strategy and analyse the pitfall in GM’s marketing strategy in India. This research will come up with different recommendation for successful strategy implementation. Data Analysis After data collection, data need to consolidate and sort according to the priority and needs of the research. These data can be two types, Qualitative and quantitative. For consolidating quantitative data researcher can use tools like sum, average, mean etc, and for measuring qualitative data researcher can use different kind of coding.
As part of analysing the data, researcher used descriptive statistics techniques. Because this technique is suitable for complex communicative information. And it avoided Inferential statistical technique as it is suitable only for large numbers and indexes like Population survey, sensex etc. Further Research and Conclusion This research will come up with different recommendation for successful strategic implementation. Good strategy is back bone of the business. In this fast moving competitive world; organisation need to develop competitive marketing strategy for survival.
This research explore various concept of modern strategies and analysing possibility of risk while implementing it. Reference: Cynthia A & Michael E Porter, 1991, Strategy: seeking and securing competitive advantage Alfred Pritchard Sloan , 1990, My years with General Motors. Robert M Grant, 2005, Contemporary strategy analysis Web reference: http://www. gm. com/corporate/about/, Accessed on 7th January 2011 http://www. chiefexecutive. net/sc/leadership/articles/failed_strategies/ Accessed on 2nd of Jan 2011. http://www. youtube. com/watch? v=MsPwyr9V5CU (Business as usual for GM India) 15th of Jan 2011