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with that word as it discusses North Korea and Iran. The bomb is still with us. What makes more sense is to reposition the industry around the source of the energy. In other words, energy can be generated by coal, oil, gas, solar, and wind. Why not add uranium to that list of sources A uranium power plant doesn t sound very dangerous. A uranium power industry certainly sounds a lot friendlier. The game of repositioning often comes down to selecting the right words because, as you learned in 1, it s all a battle of perceptions, and words are your weapons.
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GM is the mother of all micro crises. Much, and I mean much, has been written about the General Motors crisis. Some claim that the situation is hopeless. Others say that there s a chance that things will work out in time. No one writes about the fact that success or failure will not revolve around the GM brand. (No one walks into a car dealership and asks for a GM car.) GM s future depends on how well its remaining brands are repositioned and how well each strategy is executed. In some ways, it is a replay of Alfred Sloan s
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eliminating a number of GM brands and building a gigantic business around five brands that became a car for every purse and purpose. But that was then. What s available in today s highly saturated and wildly competitive automobile market First, what drives today s most successful brands As you have read earlier in this book, in a word, it s a word. The most powerful brands stand for a word or a concept. Toyota is about reliability. BMW is about drivability. Mercedes is about engineering. Volvo built a brand around safety. The problem with the GM brands was that each of them lacked that simple differentiating idea. This was the result of each brand trying to be everything for everybody. What s a Chevrolet It s a big, small, expensive, cheap, truck, van, or sports car. So the task for the postbankrupt GM is to carefully figure out what its four remaining brands should be about. What is the differentiating strategy to pursue Interestingly, there are some obvious ideas on the table that the company can move to preempt. Let s start at the bottom, with Chevrolet. If you look at the numbers, Chevrolet has a chance to be repositioned as a leader. This is always a good strategy, as people buy what other people buy. What s a Chevrolet It s America s favorite American car. Good value, variety, and heritage can be the story.
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Next up is Buick. The first move should be to stop making any cheap Buicks. Don t compete with Chevrolet. What Buick wants to do is compete with the cheap BMWs, Mercedes, and other luxury automobiles that are trying to go down in price to sell more vehicles. This sets up a repositioning idea that a Buick is about quality without paying for status. That could be a very powerful value story in a world that is buying less status. Continuing up the ladder, we have Cadillac. This can never be a true prestige car. The fancy imports dominate that category. What Cadillac can stand for is leading-edge technology in such things as engine performance, safety, or electronics. Some people love to buy the latest thing. Finally there is GMC. I m not sure why the company wants to hang on to this brand, but there is an idea that it could use, especially with the larger vehicles that use this nameplate. The repositioning idea is that of rugged reliability. It comes out of the prior professional-grade promotion of this brand, but it is a lot more meaningful. Of course, the company would have to deliver on that promise. There you have it. Four brands that are well repositioned in a tough marketplace. One could say that if the company executes properly and stays focused on these concepts, it has a shot at success. If not Well, let s not drive there.
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