Case Study Of Lamborghini

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Register to read the introduction… Unless you are using a highly differentiated strategy, such as Lamborghini, you will need a broad product line to ensure you stay on top of the ever-changing trends. To enter the industry would require an outrageous amount of money, and would still be very difficult to survive against the giants in the industry. The only way to survive would be to begin by being a leader in a certain niche. For example, there is not a company that has really strong position as the "electric car" or some other alternative fuel vehicle. A new company with vast amounts of financial resources (or a current manufacturer could launch a new brand) to take this position by specializing in this …show more content…
Also, GM established a partnership with the United Auto Workers Union who make decisions by consensus with GM management. In addition, plant design, teamwork, and cost control are advantages of Saturn. Enthusiastic employees, early advertising campaign resulted in a focused brand image for Saturn, salespeople work in teams and split commissions to avoid high-pressure sales techniques; this provides a relaxed, stress free showroom without annoying salespeople. Secondly, Saturn has excellent customer satisfaction, and have been successful with recent advertising campaigns. Saturn uses only one dealership in a metropolitan area so they compete against the competition and avoid cannibalized sales. Saturn's one price policy is an advantage because of tight profit margins that ensure everyone gets a good price. The company generated huge sales I the first half of the 1990's. Saturn's parent company, GM, has vast amounts of …show more content…
Saturn was late (2001) in introducing their SUV, formerly did not use descriptive names because of possibly diluting the Saturn name, however, recent additions to the Saturn's product line have used descriptive brand names, which lacks consistency and may weaken the Saturn name. Saturn's strategy was to take sales away from imports as a whole, but Saturn was too small to do this ( it would have been better to focus on taking sales away from one of the smaller import companies, or a small domestic company first). The company had trouble meeting demand in the first half of the 1990's, and when the chairman pushed for increased production, quality suffered. When GM was having troubles of its own, they were reluctant to invest more money in Saturn ( which is the opposite of what they should have been doing). Furthermore, GM failed to commit money to fund new models beyond 1995. Decreases in sales from 1995-1998 and a 4.1 percent decrease in 2001 due to the weakened economy. Saturn's focus on small cars left it vulnerable to the shift in demand toward larger

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