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Saturn Case Essay

388 words - 2 pages

Saturn Case

Five Forces
Rivalry among competition
Many Players
Fragmented Market
Threat of New Entrants
Many, Huge Players
High Fixed Costs
Efficency required for production
Labor laws strict
Threat of Substitutes
Many alternatives
Rail, buses, taxis, etc.
Bargaining Power of customers
Many companies
Many options
But new policy is there to reduce it
Zero bargaining pricing by Saturn
Bargaining Power of Suppliers
Saturn manufacturs mostly internal
Suppliers located nearby and dedicated
Others get supplies from many suppliers


Good Image and liked by most consumers
66.3 ...view middle of the document...

Partnership with union with more decenteralization and employee liberalization
Good brand image
One price policy
Backed by the largest automobile manufacturer GM
Return Policy

Fall in knowing what customers want exhibit 6
Can put more focus on keeping prices low and raising quality as required by customers exhibit 3
Can focus more on fuel efficency
More in R&D
Limited product line

Import opportunities growing all over the world
Customer like Saturn and is a competitor of imported cars

Risky positioning with many close competitors (Toyota, honda, Nissan, mazda, mitsubishi) Exhibit 4
NADA dealer survey shows fall in most values Exhibit 5
Easy to copy strategies


Customer Baby Boomers, 30-40 years, trends and price focused
Geographic Located in major cities of USA
Niche Small car but good quality segment

Operational Strategy
Separate from parent company with focus on different values and willing to learn from the japenese parners
Cheap cars with good quality (steel to plastic to reduce costs)
Partnership with Toyota and Union. Group 99 created to get cross-functional insights and more worker involvement
Purpose built plant
Sself suffiicient in raw materials
Dedicated suppliers developed nearby

Marketing Strategy
Image created of being different
Customers used for advetisment
Employees used for advetising
word of mouth advertisment
Friendly and engaging method of sale

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