After two years of less than stellar performance as a result of significantly lower sales plan, senior management at General Motors (GM) mobile telecommunications service launch, OnStar, recognized that without a significant change in its strategy, support the company will be reduced. Chet Huber (HBS 1979) collided with one of the most difficult decisions of his career. He had to decide then GM executives to approve the plan OnStar factory installation on every vehicle it is made, the new strategy calls for a sharp increase in the obligations of the corporation to fight technology enterprise. Alternative would be to continue with the current strategy of selling OnStar as aftermarket products at dealerships GM. GM has produced more than five million new cars a year. OnStar installation on every car can exponentially increase its subscriber base, but it will cost hundreds of millions of dollars and cause unknown number of changes, both inside and OnStar GM plants. "Hide
by Clayton M. Christensen Source: Harvard Business School 23 pages. Publication Date: September 1, 2009. Prod. #: 610029-PDF-ENG
Related Case Solutions & Analyses:
Multinational Enterprises and the Promotion of Civil Society: The Challenge for 21st Century Capitalism
The Mont Blanc Tunnel Disaster: Lessons Learned
Computer and Technologies: Managing High Growth
Strategic Capital Management LLC (A)
BharatMatrimony.com
Digitalization at Siemens
Link REIT
Calgary Drop-In Centre: Donor Information System
TransCanada’s Energy East Pipeline: Managing Aboriginal Relations in the Energy Sector
CompuSoluciones: Competing against Disintermediation
