Name a firm that underwent a major strategic change within the last five years.I would like to know about firms that had a very important strategic change very recently.
In the United States, at least, the most prominent example of a strategic change in recent years would surely be General Motors. This is the large auto manufacturer that declared bankruptcy in 2008 and was "bailed out" by the US government.
During its bankruptcy, GM changed its strategy in some very important ways. Among them were
- It decreased its labor costs. This involved a major change because it involved renegotiating the relationship that GM had with its unions. By doing so, GM was able to reduce the number of workers on its payroll and increase productivity per worker.
- It reduced the number of makes and models of cars it was making. Many of these had been losing money for years. Among the makes that it shut down or sold were Hummer, Saturn, Pontiac and Saab.
- It moved towards making smaller cars and towards embracing new technologies as with the Chevrolet Volt.
By making these and some other changes, GM radically redid the way it does business. This is a clear example of strategic change.