Gmbg Case Study Essay

1218 Words Mar 29th, 2012 5 Pages
GMBG Case Study
Summary/Analysis: The GMBG case study looks at the “Blue Macaw” Gravatai Plant in Brazil. This plant has revolutionized the auto industry in Brazil by becoming the first plant to sell cars directly from the customer. The plant uses an online ordering system to facilitate sales directly to consumers at a lower cost than before. The plant utilizes a make to order system and has all of its suppliers housed at the GMBG plant working together to produce the vehicles. The case study highlights the history of the Brazilian automotive industry, the GMBG plant itself, the production strategy/manufacturing process as well as the distribution strategy of this revolutionary and profitable division of GM South America.
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3. I believe that dealers would be very wary of the GMBG system in which customers order directly from the manufacture. It could leave them feeling like they may be left out of entire process eliminating the need for their service. It would seem that this type of system would eliminate the need for a dealer because customers no longer need to go through them to buy a car. In fact, they can do it much easier and faster online. The typical response by dealers would not be in favor of this system. The GMBG case, however, shows that dealers may not need to worry. This change will not eliminate them in the future but rather change their role. Dealer’s primary role will no longer be selling vehicles to the customer. Instead their role will shift to activities such as servicing, buy and selling of used cars, customization of already purchased vehicles, and delivery of purchased cars from the manufacturer to the consumer. The new system does not equal their demise but rather a shift to a new role in the supply chain process for GM.
4. With hundreds of thousands of customers coming directly to the manufacturer to buy vehicles there could be a number of problems. With so many customers never having dealt with car sales in this way before, GM could run into a problem of confusing or angering customers with the process. This in turn could drive them away from the process. Some customers may not trust the idea of doing business

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