Publications
Publications
- May 2006 (Revised July 2007)
- HBS Case Collection
Creating Meaning for the Customer: The Case of GMACI
Abstract
Excellence in exploiting customer information and leveraging its affiliation to the GM group are among the strategic options that GMAC Insurance CEO Gary Kusumi is considering. GMAC Insurance, the wholly-owned auto insurance subsidiary of General Motors, formed through the merger of two smaller insurance firms, is at a strategic cross-roads. Progressive changed the competitive landscape with its superior pricing abilities, and now Kusumi must decide whether to compete on the ability to use customer information for pricing or whether even larger rewards could be found in leveraging the connection to the GM family. However, although jointly selling auto insurance and cars is common in many countries, the ability to do so at the GM Group is called into question by several significant organizational stumbling blocks.
Keywords
Customer Relationship Management; Decision Choices and Conditions; Knowledge Use and Leverage; Strategy; Auto Industry; Insurance Industry
Citation
Martinez-Jerez, Francisco de Asis, Nathan Mangum, and Joshua Bellin. "Creating Meaning for the Customer: The Case of GMACI." Harvard Business School Case 106-073, May 2006. (Revised July 2007.)