General Motors: Navigating Through a Sea of Change

General Motors is a well-established American company within the automotive industry. However, the industry is always evolving as new technologies, such as self-driving cars are introduced. This technology is predicted to have an impact on the current industry and change the way the world views transportation. General Motors cannot sit by as the technology is implemented if it wishes to continue to do well. Companies like Kodak made this mistake as the industry switched from film to digital photography. Kodak was too slow to react to the change and continued to develop and sell film-based products long after the technology became obsolete, which resulted in the eventual breakdown of the company. General Motors has already taken several steps in the right direction by purchasing Cruise Automation and allowing them to operate independently from the corporate brand. Overall, general public perception of this new technology is cautious, and most probably aren't ready for the high price that these self-driving vehicles will bring. Ride-sharing companies are the first adopters of this technology since they are able to pay the premium prices and can handle the testing of the vehicles. Private consumers cannot buy fully autonomous vehicles but can currently purchase vehicles with semi-autonomous capabilities, such as the Tesla Model S. These semi-autonomous vehicles come with a price that most consumers cannot afford resulting in low adoption rates. However, General Motors can resolve this slow adoption rate among private consumers by developing a new brand within its corporate portfolio under the name, Cruise, to develop, market, and sell self-driving vehicles to ride-sharing companies and commercial shipping companies. This brand will start out by exclusively selling to commercial entities before eventually expanding into the private consumer segment as costs become less prohibitive and adoption rates accelerate. This solution is designed to cement General Motors' position within the automotive industry and establish it as the go-to company for every self-driving need. This relationship developed between the company and the consumer will limit competitors and create a long, financially successful life for General Motors.