Lessons from GM: How government anti‐trust legislation undermined brand management

Abstract

Purpose

The purpose of this paper is to narrate the history of General Motors' (GM's) success in its first 50 years, and describe the causes of its decline after government anti‐trust hearings.

Design/methodology/approach

The paper provides an historical analysis of GM through secondary sources.

Findings

GM was forced to abandon the very management principles it had developed and pioneered because of government legislation, leading to brand‐killing initiatives.

Research limitations/implications

This case study is of one firm only, but draws parallels with other potential firms.

Practical implications

This paper should serve as a warning to all industrial and commercial giants that threaten a monopoly, including IT firms like IBM and Microsoft.

Social implications

This paper addresses the negative effects of government regulation in a profit‐making environment, and will affect investors and consumers.

Originality/value

The paper clearly describes sound management principles in relation to brand management, and traces the history of a car company that is currently facing financial difficulties.

Citation

(2010), "Lessons from GM: How government anti‐trust legislation undermined brand management", Strategic Direction, Vol. 26 No. 9, pp. 19-21. https://doi.org/10.1108/02580541011069350