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A fitting repartee?

8. May 2008 23:09, sonu42


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Test drive a Toyota at a GM dealership! 

The American aversion Test drive a Toyota at a GM dealership! to its own cars has been a world renowned co - nundrum. Analysts have used almost all their grey cells to reach a consensus but to no avail. The Japanese-induced quagmire has brought about unanticipated losses for the Detroit ruler (General Motors). Now that the Japanese are selling their cars on a set perception that revolves around value, the Americans are rethinking their business strategy. Rather than fighting the competition through advertising mediums, GM has instructed its Saturn dealers to take the competition to the next level by stocking rival cars (not for sale though). GM is apparently Confident that in a side by side comparison, its products will in fact fare better.

The move underscores GM’s fears that sales could be jeopardised by rival dealerships. It is believed that in order to win customers, dealerships often indulge in falsifying information about rival products, thus misleading customers. States Emmanuel Bulle, Analyst, Fitch- Ratings, “Such moves may occur when companies are pretty confident about the success of their products.”

Such practices have been sighted to be major contributors to GM’s dwindling market share. This way, the haranguer strategy of GM rivals will be in check, but of course, the real challenge is to short circuit Toyota’s meteoric march to the number one crown... and that remains a long road ahead...

Edit bureau: Karan Mehrishi

For Complete IIPM Article, Click on IIPM Article

Source : IIPM Editorial, 2008

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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