fishkiller
Active Member
Suggest reasons for GMAC to enter or not to enter the chinese market for auto financing? :thinking: I'm helping a friend with a case study, please chime in with any info you may have... Thanx alot!
International Business Question!!!
- Thread starter fishkiller
- Start date
phixer
Active Member
China is going through an industrial revoloution the same way the US did years ago. Although it wouldnt help their air quality any, the sale of GM vehicles to China may catch on due to their current thirst for oil. It would be a drop in the bucket compaired to the ammount of money we owe China even though this would be through a private enterprise and not government funds?
Large American SUVs are seen as a Novelty items in Japan although not practical on Japaneese roadways, they may catch on in China the same way and help to improve GMs current sales status.
Large American SUVs are seen as a Novelty items in Japan although not practical on Japaneese roadways, they may catch on in China the same way and help to improve GMs current sales status.
scgator
Member
Fishkiller - Try these (just my opinion)
Pro:
1. Untapped market - an aggressive campaign could potentially yeild a very high market penetration. If GMAC can get in an become the front-runner they create huge barriers that their conpetetors must overcome to steal their market share.
2. Diversification of Risk - China would represent a counter-cyclical market. (If I'm not mistaken) With China being more oriented toward the Asian financial market it gives GMAC a buffer against market fluctuations in the west. China is also just starting to emerge industrially where the west is an older harder market.
3. Over a billion people that are experiencing an upturn in their standard of living. Probably not very credit savy so would be willing to go for higher rates. (maybe)
CON:
1. The Chinese government and general instability.
2. Cultural views on credit. (not sure if they are anti-credit or not)
3. No real knowledge of consumer likes/tastes/wants etc.
Just some thoughts. I was never that great at these type of case studies in grad school so take with a grain of salt.
Pro:
1. Untapped market - an aggressive campaign could potentially yeild a very high market penetration. If GMAC can get in an become the front-runner they create huge barriers that their conpetetors must overcome to steal their market share.
2. Diversification of Risk - China would represent a counter-cyclical market. (If I'm not mistaken) With China being more oriented toward the Asian financial market it gives GMAC a buffer against market fluctuations in the west. China is also just starting to emerge industrially where the west is an older harder market.
3. Over a billion people that are experiencing an upturn in their standard of living. Probably not very credit savy so would be willing to go for higher rates. (maybe)
CON:
1. The Chinese government and general instability.
2. Cultural views on credit. (not sure if they are anti-credit or not)
3. No real knowledge of consumer likes/tastes/wants etc.
Just some thoughts. I was never that great at these type of case studies in grad school so take with a grain of salt.
fishkiller
Active Member
Very helpful, actually. Thank you! Same cons as I came up with, but bravo on picking out any pro's, much less three of em.
