General Motors

Let’s say the real estate market. Until relatively recently sold everything what was being built, almost anyone could put to promoter, was a market in which demand was exceeding supply, while this was very high (part of the demand had a clearly speculative component). However, now the demand has plummeted, virtually the only thing that is being built is what was already underway, and just start new works. In this situation, let us imagine a city size medium 1,000 homes were sold annually, and our promoter sold 100, so it had a market share of 10%. If demand has dropped to 150 homes, this businessman has two options, or change your business or tries to increase its market share, so the overall market decline affects you to him as company as little as possible. Without doubt, this is difficult to achieve, but a necessary condition, although it may not be enough, is to know your own business, market, competition, is say, have a clearly defined and updated Business Plan.

Finally consider the case of a mature market such as the automobile, in the United States.UU. It was traditionally dominated by large American firms, General Motors, Chrysler and Ford, today’s news by the hurry situation who are living. General Motors is a particularly significant case of lack of adaptation to the market, since for many years it has been the largest automobile company in the world (recently surpassed by Toyota). With the current crisis it has lost most of its value in bag, but this is not the problem, but the gradual loss of market share that has been suffering to the having failed adapt their products to the demands of clients, requiring smaller and ecological vehicles and lower consumption, and that has resulted in an acute lack of liquidity that has led the company to seek help from the Government. General Motors had a Business Plan? Without a doubt. It was adapted and updated according to the evolution of the? market? It seems that not.