aaa framework general motors
DESCRIPTION
AAA Framework of General MotorsTRANSCRIPT
AAA Framework
• Increase market share by adjusting parts of a company’s business model to be suitable for Local Markets
• Necessary for Virtually all products.
Adaptation
General Motors, for example, intends to build 90% of its cars centrally around a core global architecture and then ship these to local plants where they can be adapted to local needs and tastes.
Their architecture must be flexible enough to deal equally with poor roads in India and smooth highways in the United States.
Aggregation
• Creating economies of Scale to exploit similarities• Introduce economies of Scale without jeopardizing
local responsiveness
Arbitrage
• Exploit differences between markets instead of trying to adapt to them Ex. By moving different parts of the supply chain to
different places
GM is using China’s unique combination of inexpensive labor, innovation and a strong work ethic to make Cost Effective cars for the export market