Onstar
1. The chapter discussed several examples of companies that have used IT for competitive advantage. Is there anything about the OnStar system that makes it a good example as well? Is OnStar a feature that is likely to give GM a competitive advantage for an extended period of time or is it likely to give, if anything, a temporary advantage?OnStar provides emergency road assistance and driving direction. Similarly about flight reservation, wireless applications are on the way too. If flights get delay than it informs the passenger that you can have half hour more to relax. The technology is great. GM has used the technology to support its own brands, and not establish itself as a separate brand. They were giving up a competitive advantage. GM’s brands need everything they can get, and that’s why they have used OnStar for. For example: Auto analyst at investment bank, points to a recent agreement with Lexus, in which the OnStar service will be branded Lexus link, as an example of how the OnStar brand has been used. It does not have any temporary advantage because the technologies that are succeeding in wide adoption frequently display simple interfaces and low barriers to use. In the case of instant messaging, e-mail, and
Since research has shown just a few weeks ago, that by the year 2005, the global market for telematics will grow to $8 billion, compared to $1 billion this year, GM with help of OnStar lies in the High Growth and High Potential area on the three generic strategies grid. GM is investing a lot of money in the technological transformation and being very innovative, GM’s CEO believes that believe the automobile itself is being transformed into a communications and entertainment platform as well as a transportation platform. With this belief GM is following the right path towards technological growth. OnStar takes advantage of cell-phone, Internet, and GPS systems to offer many services such as road side assistance. If I were to be a market strategist for any cell phone, Internet Portal, or GPS service provider, I’d look at OnStar as a golden opportunity to expand current business. It would be an opportunity to expand into new industry and thus gain new customers. In fact, if the company I worked for did not take this opportunity I would advise them that they would have to scramble to catch up later on. OnStar service was originally offered in Cadillacs in 1996 as an emergency concierge and road service. It uses global positioning system (GPS) to provide directions and to locate the vehicle. A cellular connection to the call center enables driver to request roadside assistance. GM plans to upgrade the onboard cellular system into a platform for delivering web-based email and content, and voice-activated calling to its OnStar menu. OnStar combines GPS, cellular, and Internet technologies to come up with a service that is needed and useful to the driving consumers.
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Approximate Word count = 2044
Approximate Pages = 8 (250 words per page double spaced)
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