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GENERAL MOTORS ENTRY INTO JAPAN ESE AUTOMOBILE MARKET.
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Examines economic context & background for G.M. to market its Saturn into a key foreign market. Saturn's succes in Japanese marketplace. Japanese consumer loyalty.... More...
4 Pages / 900 Words
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Paper Abstract:
Examines economic context & background for G.M. to market its Saturn into a key foreign market. Saturn's succes in Japanese marketplace. Japanese consumer loyalty.

Paper Introduction:
This research examines the entry of an American automobile company, General Motors' Saturn, into Japan. The plan of the research will be to set forth the economic context and background for Saturn's entry into a key foreign market and then to cite factors of that entry that may help forecast future lines of market development for the brand there. The economically depressed situation of the major American automobile manufacturers in the mid-1980s owed much to the strength of competition from Japanese automobile manufacturers. By 1985 American auto manufacturing plants had an antique quality about them, being plagued by assembly line labor disputes and compared unfavorably to the robotics-driven assembly lines of Japanese automobile makers. By 1985, foreign auto-makers controlled approximately 30 per cent of the American car m

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In that regard, the president ofGM Japan was quoted in April 1998 as saying that Saturn was "not a brandthat chases after unit sales. Nobuyoshi Yoshida, President ofthe Tokyo-based Automotive Business Practice Institute, Inc., was quoted inFebruary 1998 as saying that if American companies "don't bring in moreappropriate models, [they] will find it very difficult to raise theirsales" (Quotes, 1998). Press release retrieved from theWorld Wide Web 2 August 2 , at http://www.businesswire.com. References Adler, A.L. For the most part, Saturn executives have maintained a laconicattitude toward sales forecasts in Japan. New age of almost cosmic industrialachievement. Just Auto. Power gave Saturn its "BestNameplate in Japan" award, the first such designation for an American car(Saturn, 2 ). (1998, May). Dever, P. There is also compelling evidence that Japanese automobilemanufacturers have been consistently tenacious of such American marketshare as they have gained since their products were first sold in the US.The Association of International Automobile Manufacturers is an umbrellalobbying organization serving the interests of non-US auto-makers that dobusiness in the US. Saturn appears to have understoodthat market entry and acceptance in Japan might be difficult, and thecompany refused to forecast sales in Japan, based on the fact that otherU.S. (2 , April 12). Saturn Corporation. However, Saturn's accommodation to the tastes of theJapanese marketplace and its pattern of winning awards and recognition didnot necessarily translate into sales. Cahners Publishing Company. In 1996, the company announced that a right-hand-drive(RHD) model of Saturn would begin being sold in Japan in 1997 (Saturn,2 ). New York: New Press. Japan Auto Trends, 2. Forbes, 146-15 . Retrieved from the World Wide Web 2 August 2 , athttp://www.theautochannel.com/news/date/199612 2/news 2648.html. Business Wire. Saturn still has yen for Japan.Automotive Industries, 179, 1 . Internationalisation of the automobileindustry. Retrieved from the World Wide Web 2 August2 , athttp://www.findarticles.com/cf_ /m3 12/5_179/547 218 /p1/article.jhtml. Cox, J. Saturn's success in the Japanese marketplace since the opening of 14sales outlets there in 1997 can be described as uneven. International auto-makers' group readyfor new challenges with new leadership. Thesuccessful competition by Japanese auto manufacturers in the US fueled USconcern about a foreign-trade imbalance strongly weighted toward a Japanesesurplus through the 198 s and 199 s and beyond. Japan in war and peace. New York:Routledge. However, that statement must be evaluated in light ofthe fact that in all of 1998, after 14 dealerships had been established inJapan, Saturn sold only 1,4 cars in all of the country; some 25 , weresold that year in the US (Cahners, 1999). Smith, R. Japan: Beyond the end of history. In 1999, J.D. T. By 2 , there were 22 Saturnnameplate dealers in the country. In its first month of operation in Japan in 1997,Saturn orders numbered 1 and were described as "very promising" for thecompany's future outlook (Adler, 1997). Being laconic appears also to have beenprudent public relations. Saturn designates its first 6 dealers in Japanmarket. This research examines the entry of an American automobile company,General Motors' Saturn, into Japan. Williams, D. (1985, Spring). The Saturn company appears to have gone about its entry into Japan ina systematic, if not careful, way. By 1985 American auto manufacturingplants had an antique quality about them, being plagued by assembly linelabor disputes and compared unfavorably to the robotics-driven assemblylines of Japanese automobile makers. The economically depressed situation of the major American automobilemanufacturers in the mid-198 s owed much to the strength of competitionfrom Japanese automobile manufacturers. (1994). Retrieved from the World Wide Web, 21 August2 , at http://www.detnews.com/menu/stories/55222.htm. Designed specifically as a small car, Saturn had success with Americanconsumers and auto-industry organizations when it was introduced in 1989.Beginning in 1992 and continuing for five years afterward, the industryevaluation organization J.D. On the positiveside, there was the fact that Saturn had taken the trouble to create RHDmodels before entering the Japanese market, an action that other majorAmerican car makers had been slow to undertake. (1999, May). (1985, Summer). Japan: General Motors maycreate GM AutoWorld dealer network in Japan. 158). Similarly, Williams says that the"Japanese model is no calm surrender to the arbitrary outcomes generated by[democratic] market forces. The plan of the research will be to setforth the economic context and background for Saturn's entry into a keyforeign market and then to cite factors of that entry that may helpforecast future lines of market development for the brand there. B. cars marketed there, such as the same-size Chrysler Neon, did notachieve sales goals (Dever, 1996). The relevance of such analysis to this research is that it helpsexplain what can be interpreted as brand loyalty by Japanese consumers totheir country's nameplates, irrespective of a product's performance orprestige in the American market. Our brief yet distinguished history.Retrieved from the World Wide Web 21 August 2 , athttp://websearch.cs.com/cs/results/cssearch-frameset.adp?sTerm=saturn%2 general%2 motors&type=I&brand=CSI&tabs=Y&serviceType=Classic&uType=&hit_url=http%3a%2f%2fwww%2ecompuserve%2ecom%2fwrap%2flinker%2easp%3fref%3dhttp%3a%2f%2fwww%2esaturn%2ecom%2f. It was at about that time that General Motors wasdeveloping its response: the Saturn car, designed to be manufactured by an"integrated" rather than "assembly-line" method, i.e., the Japanese ratherthan traditional American method (Smith, 1985). (1993). This appears to havefacilitated some sales success. (1996, December 2). Plain vanilla just won't do. Jones, D. In March, Saturn broke through the 1, markfor cumulative total cars sold in Japan and we are very satisfied withthis" (Quotes, 1998). By 1985, foreign auto-makerscontrolled approximately 3 per cent of the American car market, andconsumer confidence in the quality of American automobiles was low (Jones,1985; Flint, 1985). Journal_of_Business_Strategy, 6, 78-8 . Quotes of note. Retrieved from the World Wide Web 21 August 2 , athttp://www.auto.com/industry/qsaturn13.htm. (1996, July 9). It remains to be seen whether Saturn and its parentcompany will have the persistence, patience, and market savvy that Japanesebusiness interests exercised in the US, to make meaningful inroads intoJapan's automobile economy. The Detroit News. (1997, May 13). Flint, J. (1985, October 21). Just-Auto Editorial Team. It is about making things happen: settingnational goals and achieving them" (Williams, 1994, p. Retrieved from theWorld Wide Web 21 August 2 , athttp://www.japanauto.com/jama/library/jat/jat_v2n2/jat_v2n2_ 6.html. That target included but was not limited to Saturn(Just-Auto, 2 ). (2 ). Power & Associates named Saturn number one inoverall satisfaction with consumers. The AutoChannel. This has been analyzed as afeature of Japan's postwar industrial policy, which was consistent with along tradition of hierarchical, elitist, and nationalist-tingedbureaucratic and industrial forms. The first six dealerships that soldSaturns in Japan were nonexclusive, also selling such brands as Nissan,Daihatsu, Volvo, and Honda (Cox, 1996). Saturn sees promise after month in Japan.Detroit Free Press. The company first turned a profit inthe early 199 s. Controversy surrounded the entry of many American business interestsinto the Japanese market in the last quarter of the 2 th century. Retrieved from theWorld Wide Web 2 August 2 , athttp://search.iwon.com/commerce/multisearch.jsp?searchfor=saturn+japan&alias=%2Falias%2Fsearch. (2 , July 3). Dealerships for Toyota, which isGM's counterpart in Japan as largest auto manufacturer in the country, werespecifically not included as part of the initial Saturn dealer roster. Dower, J.W. Located in Arlington, VA, adjacent to Washington, D.C.,AIAM is, like other organizations of its kind, staffed by Americanadvocates; however, 12 of the 16 affiliates of the organization areJapanese (Business Wire, 2 ). General Motors, Saturn's parent company, appears to have made adetermination that more aggressive marketing in Japan might help increasesales not only of Saturn but also of other GM vehicles. Journal_of_General_Management, 1 , 23-44. A survey of Japanese commentary onAmerican products reinforces the analysis. Saturn makes plans for Japan. Under the banner ofits AutoWorld dealer network, staffed at the executive level by Japanesemanagers, GM altered Saturn's original policy of not being specific aboutsales targets in Japan in mid-2 , by announcing that it had set an annualvehicle-sales target of 24 , units by 2 4 throughout the Asia-Pacificregion, Japan included.

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