Question: need type answer urgent within 25 minutes ...please briefly explain General Motors is one of the oldest and largest multinational firms in the world, with

need type answer urgent within 25 minutes ...please briefly explain

General Motors is one of the oldest and largest multinational firms in the world, with foreign operations concentrated in Western Europe. If we consider GMs operation in developed countries prior to 1997; in developed countries first they bought established brands such as Saab and Opel, and then gave the local mangers almost complete autonomy to develop their own strategies. The result was carefully tailored products that fit local tastes, but also a costly duplication of effort and a lack of organization-wide learning. However, for developing market their strategy were completely different. GM used to consider developing/emerging countries as their dumping ground. In other words, they used to export their outdated models in the developing nations at a price lower than that of the market, which did not build trust with those customers. However, since 1997 the company has shifted its focus towards emerging markets, i.e. Asia, Latin America, and Eastern Europe. At present GM is moving towards a new approach, sending state-of-the- art production technology and product designs to developing countries, and learning from the best practices of its European subsidiaries. The firm is also developing its new products on a common platform, with the ability to add custom features for each region. This will aid in realizing economies of scale. The company still suffers, however, from high cost, low quality, and too many brands, compared to its rivals. GMs top executives also started using Shanghai General Motors Company Ltd (SAIC), its a joint venture with a Chinese company as its preferred partner to expand into emerging markets worldwide, to produce affordable no-frill cars to serve the developing markets.

2. How has the entry mode evolved over time?

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