September 27, 2009
Student Name: Adam Gher
Case Name: General Motors
To develop and grow a performance-based, world-class, competitive diversity supply base that will work with General Motors towards its goal of being the market leader in the automotive industry. G.M. is a multinational corporation engaged in socially responsible operations, worldwide. It is dedicated to provide products and services of such quality that our customers will receive superior value while our employees and business partners will share in our success and our stock-holders will receive a sustained superior return on their investment
II. SWOT Analysis (minimum 3 each)
Size and Market Share. General Motors is one of the world’s largest automakers. Although GM’s market share dropped it is still very much competitive. Global awareness and presence. General Motors has manufacturing operations in 32 countries and its vehicles are sold in 192 countries Strong brand value
Global experience. The company has the experience to bounce back on the top. They have been an international company for over 100 years. B. Weaknesses
Too Much Vertical Integration. GM has a lack of communication between employees from top to bottom high health care cost
The company has a major problem with Union contracts and pension obligation. It has spent too much time on satisfying employees. GM’s cars are too big and inefficient. The market in Europe looks for smaller and more efficient cars. GM saw the market trend but still did not change strategy. The company is behind the competition on the Hybrid car. It started too late to invest in alternative energy vehicles. Losing Market share nationally and globally
Developing new styles and models. GM should develop smaller and more gas efficient cars, which will help them to increase sales in Europe and Asia. GM still has space to expand in the US and worldwide.
General Motors has made advances in the E-Business strategy and technology for the Asian automotive industry Although the company is behind the research and development of hybrid vehicles, the hybrid technology still gives GM the opportunity to get back on the top, because the hybrid technology is still very new. Reformation of health care and pension obligations
General Motors faces different political rules and restriction international GM has high competition nationally and globally
Rising fuel prices. The prices for fuel went up in the past years and the prices will still increase in the future. GM vehicles have a lack of fuel efficiency and that is one reason for the dropping in sales. Still facing Pension and high health care cost in the future. The supply cost went up such as for steel.
III. Porter Five Force Analysis
A. Strength of competition
B. Threat of new entrants
C. Bargaining power of buyers
D. Bargaining power of suppliers
E. Threat of substitute products
A. Marketing (Business-Level)
The company’s marketing strategy is based on the future trend in the automotive industry for smaller and more fuel efficient cars. GM plans to switch is production to more economical cars , because the customers are looking in economic bad times and high rising fuel prices for more fuel efficient cars. However, GM still sees a market for trucks and will continue to produce them. GM plans to add comfort and change the interior to more luxury by adding new features such as CD or DVD players. The company’s new slogan is example for its marketing strategy; “Impressive capability and performance. Refined interiors Cutting-edge fuel efficiency. These are the rewards of GMC's never-say-never engineering.” GM still wants to follow their strategy of producing a high quality “car for every purse and purpose”. However, GM is one of the few automobile giants who has enthusiastically adopted social media as part of their...
Please join StudyMode to read the full document