Low prices of fuel leading to growth in demand in US. A large number of brands are competing for market share and customer base in the market. He graduated with a Hons. For example, many GM automobiles are priced according to the price ranges of competitors. While its suppliers are not very strong financially they are scattered globally. In the Asian market, GM’s presence has grown stronger. Demographic changes in the world population have also led to changing demand and sales patterns. GM notes in its annual report “We are investing in multiple technologies offering increasing levels of vehicle electrification including eAssist, plug-in hybrid, full hybrid, extended range and battery electric vehicles. Excellent Sales Strategy: The higher the sales, the higher the revenues and profits. SWOT analysis is a vital strategic planning tool that can be used by General Motors managers to do a situational analysis of the firm . Strategic Position 3. The dollar exchange rates are another major cause of worry for GM globally. The barriers to entry as well as the barriers to exit both are higher. Compliance issues are driving costs manufacturing costs upwards for the automotive brands. GENERAL MOTORS Strategy analysis and choice 33 | P a g e The Islamia University of Bahawalpur 34. The bargaining power of the suppliers ofGM is low because of their small size. Increased competition General Motors is faced with an ever increased competition from the traditional automotive companies, the new players and saturation of its main markets. All these brand invest heavily in modern technologies, innovation as well as marketing of their products and brand. Its new product pipeline always seems to remain fresh. Fun Fact: Did you know that GM was involved in the Apollo moon program and they delivered the navigation systems and the inertial guidance for the entire program? eneral Motors was incorporated in Delaware in 2009. Even in China, partnerships with the local brands have brought good results. General Motors Commerce Strategy Pages: 18 (4479 words) Case Study: Business Process Reengineering General Motors Corporation Pages: 4 (872 words) Swot Analysis- General Motors (K) Pages: 9 (2162 words) Report Analysing the Strategic Planning of Tata Motors Pages: 16 … Its profit in 2015 reached $9.7 billion. Tell us what you think? Losses due to dollar exchange rates internationally. General Motors is a global automotive company united by a single purpose: To earn customers for life Earning customers for life is the foundational promise of General Motors. Apart from it, since the ignition switch recalls, GM has deepened its focus on product safety. GM also focuses on managing its HR innovatively. Increased focus on performance and environment friendliness will also mean higher popularity and sales for GM. Abhijeet has been blogging on educational topics and business research since 2016. GM has invested in automated driving and is getting closer to bringing automated vehicles in the market. The situation of the global automotive industry has grown stronger than it was some years ago during the recession. The brand also makes large investments in research and development for bringing new technologies including electrical vehicles and autonomous technology. It has a large nap global supply chain from where it sources raw materials which are shipped to its production facilities. By having some strategies enables the firms to get better understanding of the critical factors for their future success. Intensive Strategies 1. Its Chevy Cruze, Chevy Malibu and Cadillac CT-6 are more fuel efficient versions. GM selects only the suppliers who re driven by quality and can match its quality standards. Moreover, the increased strength of dollar has also led to increased dependence of the brand on the American markets. Still, there was an improvement in net income. Core Competence • The core competence of General Motors is innovation. We currently offer six models in the U.S. featuring some form of electrification and continue to develop plug-in hybrid electric vehicle technology and extended range electric vehicles such as the Chevrolet Volt. Otherwise political instability can also lead to supply chain and sales disruption. In this way, economic factors affect businesses including gM directly. From Chevrolet to Buick, Cadillac, Opel, and many more, all these unique brands sets the company apart from the competition. At the latter product life cycle stages, the company is supposed to at least make a modification of its marketing strategy a factor on which the Old General Motors failed. Sluggish economicgrowth and credit constraints, government regulations, carbon emission, political stability, brand acceptance are some of the factors which are affecting GM’s China sales with its joint ventures grew 7.1 percent in 2016 from 2015 to reach 3,870,587 vehicles. This in turn leads to lower sales and profits for international businesses like GM. In the Chinese market too, the automotive industry has seen stronger growth since the recession. While these brands deliver  great performance, their popularity is also because of their better performance and reliability. IN most corners of the world, the demand for SUVs and luxury cars has increased. Here is the General Motors SWOT Analysis. Chevrolet and Cadillac ave a very strong image in several parts of the world. However, it added Chevy Volt to its kitty, a plug-in hybrid that delivers better performance than the previous generation Volt. The differentiation strategy gives General Motors the ability to provide unique and superior value through its 10 brands. However, some factors that moderate the threat from substitutes include the popularity of GM vehicles, its brand image and the level of trust it has managed to create among its customers. General Motors is expecting the market to grow and yet, the predictions of the analysts might come true. In General Motors SWOT Analysis, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors. There was a small decline of .3% and .2% in market share in both regions. Also, it has a huge reputation for dominating the market in sales. General Motors Company (GM) is one of the oldest, largest, and most influential automakers in the global auto industry. The bargaining power of customers in the 21st century has grown higher for several reasons. In China, the brand’s partnership with local brands has been fruitful. EBIT adjusted grew to 12.5 Billion in 2016 from 10.8 Billions previous year. General Motors Co (GM) - Financial and Strategic SWOT Analysis Review provides you an in-depth strategic SWOT analysis of the company’s businesses and operations. Vehicles loaded with safety and comfort features. Did you find this article interesting? These recalls can dent its image and affect its sales. Some of the most iconic cars plying the US roads have been made by GM. Its vehicles are shipped to the dealers from its manufacturing facilities and warehouses for selling to the customers. However, that’s a thing of future. Millennial generation wants stylish and technological advanced vehicles that provide higher level of safety and convenience. It fell from its position of number 1 during the recession. It can bring more fuel efficient and electrical models to these markets to grow its revenue. Since the recession has passed, sales and profits in the US automotive industry have recovered faster. Company: General Motors Company CEO: Mary T. Barra Founder: William C. Durant Year founded: September 16, 1908 Headquarters: Detroit, Michigan, United States Employees (Dec 2019): 164,000 Ticker Symbol: GM  Type: Public Annual Revenue (FY2019): US$$137.2 Billion Profit | Net income (FY2019): US$6.7 Billion, Products & Services: Automobiles | Commercial Vehicles | Automotive Parts | Automotive Financing Services Competitors: Toyota| Volkswagen | Ford | Chevrolet | Daimler | BMW | Tesla | Hyundai | Renault Nissan | Fiat Chrysler Automobiles | Tata. “It is a commitment to treat every customer with respect. Alternative Energy Movement O5. They are bringing more hybrids and electrical cars to the market. In 2015, GM’s focus was mainly on managing the ignition switch fiasco. Globally, the brand can enter into strategic partnerships with other brands including Taxi brands to expand its ambit of services. GENERAL MOTORS SWOT MATRIX OF GENERAL MOTORS OPPORTUNITIES O1. Sales are expected to increased further in the Chinese market. Since a new brand would have to spend billions just to enter the market and it is not easy to build trust and customer loyalty, new brands hesitate from entering the market. Since the automotive industry is undergoing fast transition, it will be major challenge before the brands to manage this transition. It has invested in strategic partnerships that could mean a better future for the brand. the market share of GM in US touched 17% in 2016 whereas that in entire North America touched 16.6%. Two years ago this figure stood at 16.9 million units. Economic factors have also grown highly important in the context of international business. Growing demand for fuel efficient and electrical vehicles. The industry is going through a swift transition and its future will be shaped by electrical vehicles and autonomous driving. In India there is a rich market for small, fuel efficient and environment friendly cars. Deliveroo Business Model | How Does Deliveroo Make Money? Customers use a mobile app to search for and reserve a vehicle by location or car type and unlock the vehicle with their smartphone. the net sales and revenue of General Motors have kept increasing over the past five years. there are more factors too that. Toyota has moved ahead of GM to the number 1 position. The threat of new entrants in the automotive industry is absolutely insignificant. However, it also depends on how open-mindedly law approaches automated vehicle technology. 1. General Motors Strategic Marketing Issues Product (Goods, services, Ideas, Consumer, Industrial): Basically, the issues faced by GM was due to the strategic marketing issues, because the company did not deliver the quality what they promised in the marketing, as the customers of GM are paying prices as per the demand of the company and they required the customized … Strengths: One of General Motors biggest strengths is their strong position in the U.S. automotive market. This detailed SWOT analysis of General Motors (GM) aims to provide readers with a comprehensive insight into the strengths and the weaknesses of General Motors company. The competition in the auto industry has continued to rise which can be a threat for GM. We currently offer six models in the U.S. featuring some form of electrification and continue to develop plug-in hybrid electric vehicle technology and extended range electric vehicles such as the Chevrolet Volt. Simultaneously, the demand for vehicles has also kept growing and is expected to keep growing in the future. We can learn a lot from analyzing the strengths and weaknesses of GM as well as the opportunities and threats for the company. The joint venture delivered 3,870,587 vehicles in 2016 which marked a 7.1% increase compared to 2015. When the economic activity is high, the level of economic activity and employment grows leading to higher disposable income and faster growth for brands. The firm has managed a large infrastructure that includes its manufacturing, distribution and warehousing facilities as well as offices around the world in 61 countries. For instance, recall of 5000 Chevrolet Silverado 1500 pickup trucks in 2016 and in 2014, GE recalled 588000 vehicles globally for defects regarding ignition switches. General Motors Strategic Plan Analysis 1215 Words 5 Pages The following paper will discuss General Motor’s (GM) mission, vision, objectives, and goals, along with General Motors compared and contrasted by management styles with Toyota Corporation whom adopted total quality management (TQM). The bargaining power of the suppliers ofGM is low because of their small size. And the largest opportunities waiting for General Motors is global expansion. 1External Analysis 3. Share your thoughts and experiences in the comments section below. This dependence has risen since the global economic turmoil. Opportunities in emerging markets O3. – The demand for electrical vehicles has kept rising and GM must focus on bringing more electrical vehicles and hybrids so as to gain  leadership position in this area. Moreover, there are so many brands fighting for market share and same customer base. The bargaining power of customers in the 21st century has grown higher for several reasons. The 21st century customer is well informed and has all the information needed to make a purchasing decision. Emission requirements have continuously grown and they are leading to higher production costs for the brands. Corporate Level Strategies What is a Corporate Strategy? In Asia, particularly India and China the demand for small and fuel efficient vehicles has kept growing and will bring additional profits for the brand. Brands have to remain cautious regarding compliance otherwise they risk losing billions in the form of fines as happened in the case of Volkswagen just a  few years ago. Hollywood has also popularise these brands in most corners of the world. It is headquartered in Detroit, Michigan. Strategic Analysis Company Profile and Industry. Its advertising and promotions expenditures for the year 2016 equalled 5.3 Billion dollars. 1Macro Environment PESTEL Framework. The costs of labor, technology and raw materials have increased. General Motors ' Strategic Analysis Automotive Industry The automobile industry is the industry involved in the design, development, manufacture, marketing, and also of motor vehicles. Best Buy Mission Statement, Vision Statement, Values & Culture, Deloitte: Mission Statement | Vision Statement| Values | Culture, Starbucks Mission Statement, Values, Principles, & Sustainability Goals (2021), Uber: Mission Statement | Cultural Norms | Principles | Philosophy (2020), Amazon: Mission | Leadership Principles | Philosophy (2021), Nordstrom: Mission | Vision | Core Values (2020), Top 15 Chipotle Competitors and Alternatives, Top 20 Starbucks Competitors & Alternatives, General Motors’ vehicle sales market share in the U.S. 2000-2019, GM says it is ‘almost there’ on a million-mile electric vehicle battery, China: SAIC-GM & CATL forge new battery alliance, General Motors joins Latin NCAP five stars club, Companies Profile: General Motors Company, GM’s 2019 sales decline after discontinuing some models and demand falls for trucks, SUVs, Federal Judge Upholds emissions-cheating Claims Against GM and Bosch in Duramax Class-Action Lawsuit, Edmunds warns of a tough 2019 for the US auto industry as sales slide for the second time since the Great Recession and profits shrink, Recalls and corruption probes reshaped the auto industry heading into the 2020s, GM to work closely with CATL in its China EV push, Africa: The new hub for automotive manufacturing, Cruise sees rapid improvement in self-drive data in California, The global electric bicycle market is expected to reach an estimated $21 billion by 2024, GM delivered 461,716 units in Q1 in China, down 43.3% y/y, Trump prods General Motors over its auto plants in China, GM strike ends after 40 days with 48,000 staff to return to work, The lawsuit says GM sold trucks not compatible with U.S. diesel fuel, ‘Competition is really fierce right now’: General Motors sets sights on electrified, autonomous future, GM’s Revenue To Tighten Amid Global Auto Market Slowdown, General Motors Sides with Trump in Emissions Fight. Strategic Analysis of General Motors (GM) General Motors was incorporated in Delaware in 2009. Even if these international brands are not running in losses,  their profits are being affected. They also have to spend more on marketing. General Motors Company PESTEL analysis is a strategic tool to analyze the macro environment of the organization. From environmental owls to labor laws and quality related laws, there are so many laws that vary across the various corners of the world. Increased oversight and government regulation has led to increased pressure on international businesses. There are several features to provide the customers with higher convenience and comfort. eval(ez_write_tag([[336,280],'notesmatic_com-box-4','ezslot_6',172,'0','0']));The first major strength of GM is its brand image and inn some covers of the world, the brands that GM owns are more popular than GM itself. Rising competition in automotive industry. It is an important technique to analyze the present Strengths (S), Weakness (W), Opportunities (O) & Threats (T) General Motors is … General Motors’ Strategic Analysis Automotive IndustryThe automobile industry is the industry involved in the design, development, manufacture, marketing, and also of motor vehicles. . In the Indian markets too, the popularity of the Chevrolet models has risen and particularly that of the small cars like Beat. GM also sounds a large amount on research and development. They include Apple CarPlay, Android Auto, OnStar, SiriusXM radio and 4G LTE wireless. Increased costs of manufacturing and raw materials. In the Chinese market too, the automotive industry has seen stronger growth since the recession. It also proves GM’s commitment to environment friendly technology. From Corvetto and Camaro to pickups like Silverado and Sierra, it has a top grade product line and a deep reach in the US automotive market. Several of the newly released models from the house of GM are more fuel efficient. The faulty ignition switches due to which GM had to recall more than 2.6 million vehicles globally is a threat for brand image. The intensity of competitive rivalry among the existing players in hotel automotive industry is very high. Stable political environment also leads to better economic activity and higher employment. GM vehicles are present and popular globally. It has partnered with Lyft to invest in car sharing and making the sharing experience better for both drivers and customers. There could be big opportunities hidden in automated driving. These faulty switches were tied to 124 deaths and 275 injuries. contact: [email protected], [email protected]. the brand also spends on marketing of its vehicles and brand. PESTEL stands for - Political, Economic, Social, Technological, Environmental & Legal factors that impact the macro environment of General Motors Company. In this way, the overall bargaining power of GM suppliers is low. The global wholesale vehicles sales of GM in 2016 touched 6.25 Millions rising from 5.9 Millions in 2015. Its manufacturing, distribution, warehousing, assembly and office facilities are located all around the world in 61 countries. Investing in car sharing and other new areas including automated technology. In the last few years it has released several cars that rule the customers’ hearts. Industry reports show that. Weaknesses in the SWOT Analysis of General Motors : Product Recalls damages brand image: In the recent past, GM has recalled a number of vehicles due to defective parts or after sales defects. GM has improved its performance financially in the years since its bail out by the Federal government. It is not just because of the rising popularity of cars with low emissions but also because governments are now encouraging brands that bring environment friendly cars. Appreciating customers and … 1.1.4 Formulate effective firm-specific strategies General Motors Company Value Chain Analysis can be used in the competitive strategic … And customers can bring their digital lives into the vehicle through Apple CarPlay, Android Auto, OnStar, SiriusXM radio and 4G LTE wireless. Marketing Mix of General Motors analyses the brand/company which covers 4Ps (Product, Price, Place, Promotion) and explains the General Motors marketing strategy. The faulty switches had been tied to 124 deaths and 275 injuries. It has also set sustainability standards that it suppliers are required to follow. The entire focus has shifted to the customers and that has led to higher bargaining power for customers. The company has decided to move further with its plans related to Automated driving. All rights reserved | contact@bstrategyhub.com | Logo designed by Looka. SWOT Analysis is a proven management framework which enables a brand like General Motors to benchmark its business & performance as compared to the competitors and industry. There are several marketing strategies like product/service innovation, marketing investment, customer experience etc. The brand’s performance in China has also remained really strong where GM and its joint ventures enjoyed a 7% growth in sales from 2015 to 2016. They are bringing more hybrids and electrical cars to the market. Political factors have become highly important in the 21st century. Apart from it, the legal compliance related costs and other costs are also making these barriers grow. SWOT Analysis. Market Penetration Present In future the focus will have shifted entirely to the customers and electrical driving and autonomous driving will have become most important. While US is its core market, the brand’s presence in Asian and European countries has also grown better. Report and Analysis of General Motors Business Strategy Pages: 12 (2971 words) Swot Analysis- General Motors (K) Pages: 9 (2162 words) Downsizing at General Motors Sample Pages: 10 (2335 words)