OnStar: Connecting to Customers Through Telematics Harvard Case Solution & Analysis

OnStar, a provider of vehicle safety, security and information services called "telematics", was founded in 1995 as a joint venture between General Motors (GM), EDS, and Hughes Electronics Corporation, Safety and security services, including roadside assistance, emergency assistance after the accident, remote diagnostics, and stolen vehicle tracking, has been the cornerstones of OnStar's website. In addition, OnStar has provided its customers with 24-hour connection to convenience services such as navigation and route guidance, vehicle location assistance, as well as personal concierge services. To create more revenue, OnStar has extended its offer luxury cars by other manufacturers. Looking back, Chet Huber, OnStar president, was pleased with the achievements of the company since its foundation: OnStar's subscriber base has grown to more than 2 million, and the company has been recognized as a leading provider of telematics in the world. OnStar also benefit its parent company, GM. Supporting one-to-one relationships with customers, OnStar GM helped sell more cars and trucks, and strengthen customer loyalty and improve operational efficiency. While revenues in the global market in the automotive telematics terminals are expected to reach $ 20 billion by 2010, competition in the market increases. Richard Wagoner, CEO of GM, and Huber needed to explore a number of strategic and operational issues around the future of OnStar: OnStar How would create a permanent value for GM? How OnStar position yourself to get high recognition rates and renewal? That the further strategic partnerships should form OnStar maintain its leadership? As the GM based on a continuous flow of vehicles and customer data received from OnStar? "Hide
by Peter Koudal, Hau Lee, Barchi Peleg, Paresh Rajwat, Seungjin Whang Source: Stanford Graduate School of Business 19 pages. Publication Date: 03 Oct 2004. Prod. #: GS38-PDF-ENG

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