GM Inside News Forum - View Single Post - GM Hires Citibank to help conduct HUMMER strategic review

**mgescuro** · 06-23-2008, 04:11 PM

Any MBA can see the situation clearly and determine the necessary steps here.

Do a proper market sizing of HUMMER's core market. Not just "SUV's," but fully off-road capable SUV's. Also, don't take into account the NA market, but the worldwide market.

If the market is sufficient enough to support a niche product like HUMMER, then determine the proper product mix for HUMMER to make it successful.

The problem is, there is absolutely nothing wrong with HUMMER!!!!!
The issue is the fact that GM is missing the target market, and HUMMER has been slow to get product to market. (Still waiting for the H3T... tick tock...).

GM remains cluess on how to manage a niche brand.

By leveraging HUMMER's strengths in off-roading, plus the rugged image it holds, there's no reason why GM couldn't hold onto HUMMER as a niche brand. In fact, GM can easily penetrate markets that are dominated by Land Rover in global markets.

But what GM see is "Big SUV" and "gas guzzling."
They don't see the forest from the trees.

06-23-2008, 04:11 PM	#3 (permalink)
mgescuro GMI Staff Member Join Date: Jan 2003 Location: San Francisco Bay Area Posts: 24,405	Re: GM Hires Citibank to help conduct HUMMER strategic review Any MBA can see the situation clearly and determine the necessary steps here. Do a proper market sizing of HUMMER's core market. Not just "SUV's," but fully off-road capable SUV's. Also, don't take into account the NA market, but the worldwide market. If the market is sufficient enough to support a niche product like HUMMER, then determine the proper product mix for HUMMER to make it successful. The problem is, there is absolutely nothing wrong with HUMMER!!!!! The issue is the fact that GM is missing the target market, and HUMMER has been slow to get product to market. (Still waiting for the H3T... tick tock...). GM remains cluess on how to manage a niche brand. By leveraging HUMMER's strengths in off-roading, plus the rugged image it holds, there's no reason why GM couldn't hold onto HUMMER as a niche brand. In fact, GM can easily penetrate markets that are dominated by Land Rover in global markets. But what GM see is "Big SUV" and "gas guzzling." They don't see the forest from the trees. __________________ 2000 Saab 9-5 Aero 1995 Mercedes C280 1994 Jaguar XJ6 ...when all hope is gone, you know sad songs say so much... My Vision of Cadillac My Vision of Cadillac (REDUX)