GMAC

GMAC

Suggest reasons for GMAC to enter or not to enter the Chinese market for auto financing.

The major reason behind the fact that I think GMAC should enter the auto financing market of China, because of the fact that the financial environment for auto financing in China is getting better day by day. Many business analyst have made predictions regarding the Chinese marker for auto financing, they have given it the name of “A sleeping giant”. China has given some great indications through the exertion of its economic might, which has resulted mostly because of the exports made by China. Along, with that the Chinese have now become particularly proficient regarding production and marketing in almost all industries of the world, which also includes the automotive industry in which is now growing by leaps and bounds and is showing a great potential to grow in the coming future. I strongly believe that GMAC should enter the Chinese market for auto financing, because of the fact that we are here talking especially about the global finance and marketing. This is one opportunity for GMAC to grab as quick as they can, as it can result in huge profits for the company to invest in the auto financing market of China, it is an opportunity which the GMAC could not afford to ignore, if they ignore it will be huge loss for them. However, on the other hand GMAC needs to take this step very carefully and cautiously. GMAC maintains a very competitive position vis-à-vis along with the other foreign companies, which are applying for taking an entry in the Chinese market for auto financing. Whereas, GMAC should remain highly cautious regarding this decision, especially in the light of the ratings for investment grade. GMAC have sufficient flexibility for funding, which could be immensely helpful for them to carry on their vital role of providing financing and sales support to the GM. Globalization has bought some major changes in the development of economy of China. This is also the mean reason why huge companies like GMAC are looking to invest in China (Haugen, D. M., & Mach, 2010).

What is the most prudent mode of entry and market development for GMAC should it chose to enter the market?

Following are the steps which the GMAC could take for entering the auto financing market of China.

E-commerce

GMAC can use e-commerce is one of the expressions of modern and taken to enter our daily lives so they become used in many life activities, which are linked with a revolution of information technology and communications (Raisch, 2001). E-commerce expression can divide it into sections, as the first, a "trade", which refers to economic activity is through the circulation of goods and services between governments, institutions and individuals and are governed by several rules and regulations could be argued that an internationally recognized, while the second section, "electronic" It refers to a description of the field of trade performance, and intended performance of a business using electronic media and methods ...