Sunday, February 10, 2013

First Mover Disadvantage GM

In the late 1990's, GM produced the GM EV1. It was a fully electric vehicle that was far ahead of its time. In an age of big gas guzzling SUV's, the EV1 sold very well. The owners of the cars had embraced a "cult following" of the car. GM decided to pull the car from the market due to better selling SUV's. Companies like Honda and Toyota picked up on what GM had done to produce the Prius and Insight. When GM tried to return to the electric car market with the Volt, they were years behind their competitors.

Bargaining Power of Suppliers of GM

GM is the largest automotive company in the world. That being said they control their suppliers. Because if any of their suppliers try and push GM to change terms of their agreement or if the supplier's employees went on strike, GM could and would find another supplier to provide their parts. Therefore suppliers have little to no bargaining power in the automotive industry.