Recommended action for GM to manage its market share

Question

General Motors exports the cars to Spain however the strong dollar against the peseta, hurts the sales of GM cars in the Spain. In Spanish market, GM faces the competition from the French and Italian car makers, like Renault and Fiat, whose currencies stays stable with respect to the peseta. State, what kind of actions would you recommend so that GM could manage its market share in the Spain.

Answer 1

Measures that GM can take involves:

a) Diversify the market; try to market cars not only in the Spain and another European country but also in Asia;

b) Locate the production facilities in the Spain and source the inputs locally;

c) Locate the production facilities, for example, in Mexico where the cost of production is low and export to the Spain from Mexico.