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Economic/Competitive Strategy Analysis for General Motors Company

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Economic/Competitive Strategy Analysis For General Motors Company Group #2: Roberto Paternina, Luvy Garcia, Ruperto Granthon, Camilla Valdez, George Leal, Eric Reeves, and Rafael Franjul June 16, 2012 Introductory description of the business, its goals, and its markets General Motors Company is an American car manufacturing company that sold 9 million vehicles, delivered USD 135M in revenue and USD 6.1 M profit in FY11. The company was founded in Flint, Michigan more than 100 years ago. Today, General Motors is the world’s largest automotive company with operations in more than 120 countries. It has a network of 4,500 dealers globally which deliver 70 percent of its sales from outside the U.S. mainly from …show more content…

It is expected that that the recent increases will not continue, but that prices cannot be expected to decrease much from what they are now. Financing expenses for consumers have declined to some of the lowest of all time. Interest rates have hit average record lows between 4.49% and 4.5% as of early May 20124 for new car loans. These rates are expected to remain constant throughout the year. Rates have been low in recent months due to aggressive rates being given by lenders to encourage consumers to finance automobiles. In addition, competition has increased because banks and credit unions have been increasing their number of auto loans recently which has been claiming market share from the lending arms of automakers. These new entrants into the market have effectively aided in the decline in interest rates. Industry Opportunities and Threats Opportunities US Market “I like profitability more than I do market share.” This was a statement made by GM CEO Dan Akerson in January after 2 straight years of market share growth in the US.1 His statement came into fruition as the 2012 first quarter earnings released in May reported a drop in US market share from 19.6 in 2011 to 17.5%, the lowest since 1922.2 Yes, Eemerging markets are important for long term growth and profitability, and currently 70% of GM’s total sales come from outside the US, however, there is an significant opportunity in

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