Sep 21st, 2015 by Scott Hebert
Although General Motors is pursuing a strategy of differentiation in the car and light truck industry, their primary strategic focus, in terms of Treacy and Wiersema’s value disciplines, is customer intimacy. Customer intimacy “concentrates on building customer loyalty” (De Kluyver & Pearce, 2012, p. 105). A customer intimacy strategic focus relies heavily on customer relationships. In order to keep these relationships active and maintain customer loyalty, the firm must adapt quickly and maintain efficient operations (De Kluyver & Pearce, 2012). This is exactly the primary strategy of GM as defined in their 2014 Annual Report. Their primary plan is to “earn customers for life” and to do so with cutting edge technology and top-notch product design (p. 29). An automobile is a large purchase and GM knows that once they have lost a customer they may never have another chance to regain them. Developing this level of customer loyalty — for life — is the center of GM’s strategy from manufacturing plant to dealership (GM, 2015).
De Kluyver, C. & Pearce, J. (2012). Strategy: A View From the Top (4th ed.). Boston: Prentice Hall.
General Motors. (2015). 2014 Annual Report. Retrieved September 21, 2015, from http://www.gm.com/content/dam/gmcom/COMPANY/Investors/Stockholder_Information/PDFs/2014_GM_Annual_Report.pdf.