GM's E-Business Strategy

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Case Details:

Case Code : ITSY049
Case Length : 15 Pages
Period : 1998-2005
Pub Date : 2005
Teaching Note :Not Available
Organization : GM
Industry : Automobiles
Countries : US

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Excerpts

Need for E-Business Strategy

With the advent of the Internet wave in 1999, GM wanted to reposition itself strategically. It wanted to make use of its vast customer base and huge assets to emerge as a leading player in the new economy businesses of entertainment and e-commerce...

E-Supply Chain Initiatives

GM pioneered the use of the Internet in the automobile industry to improve supply chain efficiency. In November 1999, the company developed its B2B auto-parts and supplies procurement site christened "TradeXchange". Through this site, goods ranging from office supplies to factory equipment were bought for GM and its suppliers.

It also facilitated the exchange of important information among GM and its suppliers. The portal was formed in collaboration with California-based software firm Commerce One...

IT and Systems Case Studies | Case Study in Management, Operations, Strategies, IT and Systems, Case Studies

Demand Chain Initiatives

In 1999, GM launched the GMAC BuyerPower website to enable online ordering of cars. The company viewed it as a low cost sales channel to target customers especially in emerging markets like China and India...

The Impact

The impact of GM's e-business initiatives was mixed. Although some initiatives like the direct on-line sales venture in Brazil enjoyed initial success, and Covisint did have an impact on the company's value chain, other initiatives like Autocentric were rolled back.

Covisint helped in the efficient acquisition of component parts for GM. The company decided to integrate all its dealers into Covisint so that they could log in at the portal and place their orders through it...

Exhibits

Exhibit I: E-Business Metrics at GM
Exhibit II: Modules of GM Supply Power Portal
Exhibit III: Offerings of GM Buyer Power Website
Exhibit IV: GM Owner Centre Website Services
Exhibit V: General Motors - Key Financials

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