This is because the rich customers can still compare the facilities as against the price with all the alternatives they have in the price and category range that they are looking for. The Japanese, European and Korean manufacturers often offer cars in the luxury segment that have more features and priced less. Therefore, Cadillac needs to under price. Some of the differentiating features that can be included in the premium model of Cadillac are:
Inclusion of headlamps
Alerting system related to forward collision
Warning system when the car departs a lane
Mechanisms for individual controls and climate controls for the passengers seated in the rear seat
Heating facilities for the seats in the rear outboard
For seats in the front, ventilation system
The market segmentation is also necessary as it’s very costly to go for mass marketing. Cadillac being a luxury car, high income groups with high social status should be targeted first along with the high net worth individuals. With regards to the SBU, these marketing campaigns should reach the geographical areas where the manufactured cars will be shipped.
Based on strategies mentioned above, the implementation options of those strategies include human resource, marketing, and operations. The competitiveness of the GM SBU is in relation to the market position in terms of the way that has been competing with other competitors in the industry (Jawahir, 2007). The operation strategy has to be formulated for the SBU with which the operation management function of the SBU can be contributing to the ability of the company in achieving competitive edge in the marketplace. On the basis of the competitive priorities of GM, the development of the operations strategy includes: (a) lower cost, (b) superior quality and added features, (c) faster delivery, (d) flexibility with regards to some features that can be tailored according to the demand of the customers, and (e) services, which include the after sales service. The competitive advantage can be achieved by Cadillac with the means of core capabilities. There should be direct aligning of the core capabilities with competitive priorities.