General Motors and the electric car model
The GM company can efficiently make use of game theory in the identification of major risk and assessment to arrive at such a decision of shifting to the electronic models. The efficient game theory is the announcement if sustainable electrical vehicles that use electric emissions as a source of fuel. With the use of electric-powered vehicles, they are likely to beat the traditional vehicle performance that offers around 200 miles per fuel gallon able to be reached by the traditional vehicle. The major essential risks that can be felt when the GM arrives at that decision is that the clients may fear the engine working disruption along the roads and the cost to be incurred. It is true to say that when comparing the cost, the electric vehicle will cost more compared to traditional vehicles.
One of the major risks is that it is difficult to reconvince a customer to trust electric engines because of the trust he or she has in a traditional engine. A client may shun from purchasing an electric vehicle or car due to the fear of a breakdown and the size of the car. Electric cars may not be able to ferry the number of people intended by the owner or to accompany him or her on trips and drives (Ottman,2011). A customer may be still be controlled by the assumption that electric cars are smaller compared to traditional hence may make him or her not purchases it, the possible client may be using an example is a Chevy bolt due to its size. The company must educate the clients in the efficiency of the engines and reestablish the trust they had with the traditional cars and inculcate the same to the electric cars.
The other risk factor is the cost. Cost plays a vital role in determining whether a product will be purchased or not. Some clients may assume or believe that electric cars are expensive and more costly and not look at the benefits they are likely to accrue in terms of savings on gas. They assume the money they would save would still use to charge their engines (Lemman,2010). They assume the cist as constant despite having to charge their cars at home or away from home. Hence cist is a major risk factor. If clients will continue assuming the cost and not studying the reality, the company be ineffective with their new product; hence there is a need to sensitize the potential clients in cost-saving.
References
Leman, D. (2010). undefined. Advanced Microsystems for Automotive Applications 2010, 13-20. doi:10.1007/978-3-642-16362-3_2
Ottman, J. (2011). undefined. Berrett-Koehler Publishers.