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Shanghai General Motors: the Rise of a Later-Comer

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Submitted By hopegreen
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Through the case study of‘SHANGHAI GENERAL MOTORS:THE RIS OF A LATE –COMER’, we learned that the development of automobile industry in China, and GM opening up a historic challenges and opportunities to firm up China’s cooperation with SAIC.

1. Background Information General Motors (GM) is one of the world's largest car companies. Although GM lost its first-mover advantage to Volkswagen, in 2003, China became the second largest single market for General Motors, selling 201,188 vehicles, an 81.6% percent increase over the previous year. In that year Shanghai GM achieved a 13% market share in mainland China, second only to Volkswagen Group China among foreign carmakers. Sales dropped in 2004 when the company retired the Buick Sail and the release of its replacement, the Chevrolet Sail, was delayed to February, 2005, knocking General Motors Shanghai to seventh place in mainland China market share.

2. Automobile industry history and development Development situation can be divided into sevens stages as follows
|Time |market demand |local competitor |foreign competitor |Economy |Technology |Political Social |
|1950-1965 |small:only for |state-owned |No |the beginning of |Soviet Union provide |have no reference |
| |party officials |company | |economy development|technology | |
|1966-1976 |small:only for |state-owned |No |Economic stagnation|imports of foreign auto |rampant xenophobia |
| |party officials |company | | |equipment | |
|1977-1989 |Recovery in demand|upsurge of auto |No |economic growth

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