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 Web browsing has an excessive features. Reading the manual is rarely a priority. So OnStar has a new generation features in it. And it will grow up day by day.
2. Evaluate the OnStar system from the perspectives of the five-force model and the three generic strategies. Explain how OnStar might alter the five forces in GM's favor. Where would you place the OnStar system in the three generic strategy grid illustrated in Figure 2.8?.
GM has proven to be an industry leader by installing the OnStar system. OnStar has been used to assist subscribers in everything from emergency services to tracking stolen vehicles; getting the doors opened when the keys are accidentally locked inside; finding the nearest ATM machine; guiding the driver to the local zoo or gasoline station; and arranging dinner reservations and theater ticket purchases.
