General Motors: Building a Digital Loyalty Network Through Demand and Supply Chain Integration Harvard Case Solution & Analysis

Rick Wagoner, CEO of General Motors (GM), knew that something was "broken" in the automotive industry long before the USA Today article announced that in December 2001. Wagoner, along with a top aide, had launched several initiatives to realize their shared vision of creating value in GM. Some of these initiatives are aimed at the integration of demand and GM supply chains, support for the latest technologies. Their aim was to strengthen and integrate GM demand and supply chain systems to create the so-called digital network loyalty (DLN). As the name implies, DLN includes three components GM addressed "digital" technology enabled, "loyalty" to focus on customers and increase their loyalty and lifetime value to the GM, and "network" to coordinate and mobilize all the supply and distribution chain partners to serve customers. Group achieved excellent results, and Wagoner decided to get together with his team to take stock of where they stood in the realization of their shared vision. But the words "industry business model does not work" stayed with him. He wondered whether the investment in these myriad initiatives will actually pay off - and whether they will help fix the problem of low value creation "Hide
. by Hau Lee, Peter Koudal, Barchi Peleg, Paresh Rajwat, Richard Tully Source: Stanford Graduate School of Business 24 pages. Publication Date: Mar 04, 2003. Prod. #: GS29-PDF-ENG

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