Subsequent to two years of less than stellar performance leading to sales well below plan, senior management at General Motors (GM) mobile telecommunications service start-up, OnStar, recognized that without a large change within their strategy, support for the venture would dwindle. He had to determine whether to press GM executives to approve a plan to factory install OnStar hardware on every vehicle it made-a brand new strategy requiring a dramatic increase in the corporation's dedication to the technology venture that is struggling.
OnStar Not Your Father's General Motors Case Study Solution
The choice would be to continue with the current strategy of selling OnStar as an aftermarket product at GM dealerships. GM produced over five million new vehicles per year. Installing OnStar on every vehicle could exponentially increase the subscriber base but would cost hundreds of millions of dollars and lead to an unknown variety of changes within OnStar and at GM factories.
PUBLICATION DATE: September 01, 2009 PRODUCT #: 610029-HCB-ENG
This is just an excerpt. This case is about TECHNOLOGY & OPERATIONS
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