Gm Pestle Analysis

Topics: Ford Motor Company, General Motors, Automotive industry Pages: 2 (442 words) Published: October 7, 2011
General Motor’s Strategic Analysis
Factors affecting the Automotive Industry (PEST Analysis)
1. Political
Laws and government regulations have affected this industry since the 1960s. Almost all of the regulations come from consumers increasing concerns for the environment and the concern for safer automobiles. 2. Economic

The automobile industry has a huge impact on every country’s economy. According to variousstudies this industry is the major user of computer chips, textiles, aluminum, copper, steel, iron,lead, plastics, vinyl, and rubber. The study also showed that for every autoworker there are sevenother jobs created in other industries. These industries include anything from the aluminums tolead to vinyl. 3. Sociocultural

Today’s society judges people on the type of car you drive. Society does not like to admit to thisbut it is very true. Manufactures know this happens and targets their markets by these thoughts.Anyone who drives a nice vehicle is thought to be wealthy. No one wants to be seen driving anunattractive piece of junk because of what other people will think of him or her. Consumers alsojust feel better when they are driving a nice or new car, if makes them feel better about themselves. 4. Technology

The internet has affected just about every industry in the world and has also had a huge impact onthe automobile industry. A study was conducted by J.D. Power and Associates in 2002 andinvolved more 27,000 new vehicle buyers. The study showed that 60% of the buyers referred tothe internet before making their purchases and out of that 60%, 88% went to the auto websitesbefore going and taking a test drive. Business-to-business marketplaces have given the industrymany opportunities because of the internet, such as more efficiency and lower cost. 5. Demographics

For many years now, the baby boomers generation has been the main target market for just aboutevery product. As their generation is getting ready to retire and spend less money, the...
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