Cadillac decides to make a twist?
General Motors recently announced their planned release of a new Cadillac Sedan that is surprisingly larger than all the releases from their German competitors. Their plan of entering the luxury market is brave but is a very risky move, considering they’re competing against the MW 7 Series, Audi’s A8 and the Mercedes S-Class. According to General Motors, they plan to expand beyond the European market, and are arranging to spread their sales to China, where they see a potential in not only the market for larger, more luxurious vehicles, but are that the Chinese are more open to switching from one auto brand to another.
Through the release of the new larger sized Sudan, General Motors’s point of difference is their size and utilizing Porter’s differentiation strategy in order to capture more consumers’ hearts. This new product may be geared towards certain consumers who are looking for a bigger car but this need could not be achieved with any other car competitors in the German market. Moreover, General Motors has also set a very clear and distinct target audience/focus – the rich.
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