Q. Conduct a SWOT analysis for any one automobile brand of your choice. How will this analysis help in planning marketing strategies for the brand? Ans. SWOT Analysis General Motors: Introduction General Motors is an omnipresent company in the United States, a company so essential to the overall health of the U.S economy that it spawned the phrase “as GM goes, so goes the nation”. Long known for the manufacturing of cars, trucks and automobiles, General Motors has also engaged in finance and insurance. Following is SWOT analysis of General Motors However, most recently the global recession has had a devastating impact on its, cash flows, financial condition and operations. To survive, the company has had to accept a government …show more content…
International demand for light hybrid electric vehicles (HEVs) is expected to increase. It is expected to rise to 800,000 units in 2009 and estimated to reach 4.5 million units in 2013. Therefore, a positive outlook for light hybrid electric vehicles and plug-in vehicles market would boost the demand for GM’s products. Threats The Continuing Global Recession - Dire predictions for the global economy were realized in 2009 and stalled economic growth continued into 2010. The economic decline reduced consumer demand for less fuel efficient vehicles, including full size pick-up trucks and sport utility vehicles, which had been GM’s most profitable products. In addition, the economic climate has resulted in tighter credit markets making it harder for consumers to finance automobile purchases. Weakness in Global Automobile Industry - Consumer Requirements for commercial vehicles declined in the NAFTA region, Western Europe and Japan. The Western European automobile markets suffered as well particularly the volume markets of Spain down 28.1%, Italy down 13.4% and the UK down 11.3%. Germany declined 1.8%) and France 0.7% also experienced downward trend in the second half of 2008. In total, 8.4% fewer automobiles were sold in Western Europe. The Japanese car market also declined, with a drop in sales of nearly 4% in 2008. Intense competition - GMs financial status makes it vulnerable to fierce competition from
General Motors, an American borne company established in 1908, designs, builds and distributes a wide range of cars, trucks, crossovers and automobile parts worldwide. The company’s automotive operations adhere to the demands of consumers stationed internationally through its four primary automotive regions: GM North America, GM Europe, GM International Operations and GM South America. GM North America targets and serves the demands of customers based in North America with vehicles manufactured and marketed under the Buick, Cadillac, Chevrolet and GMC brands. The demands of consumers outside of North America are primarily met with vehicles manufactured under the brands Buick, Cadillac, Chevrolet, GMC, Holden,
This company was created to challenge the Ford Motor company in the twentieth century. General Motors created automatic transmissions, practical air conditioning, and the very first version self start. These creations gave General Motors the edge over Ford and other car companies at the time. “In the early years, GM's marketers added style and color to cars, putting Henry Ford and his industry-leading Model T's on the defensive” (Woodyard 03).With knowledge and advancement General Motors performed well and gained from it. But in recent years General Motors started to cut corners and build things of a cheaper quality making mistakes. These mistakes and corner cutting created problems for General Motors. It eventually lead to General Motors filing for bankruptcy on June 1st in 2009. General Motors was eventually saved from their bankruptcy but the damage was done. The General Motors plant in Moraine Ohio was shut down causing a lot of people to lose their jobs. The mistakes General Motor made did not just hurt themselves but the people who relied on those jobs. There are people who are now homeless and are struggling. The knowledge General Motors had helped them reach their success but the creators lost sight of their morals. They took the easy route and failed hurting plenty of people destroying hundreds of families and people's
In the hyper competitive world of today’s mega corporations controlled by the sway of the stock market, giant old industrial era companies rule over the automobile market in the United States as well as large parts of the global automobile market. Companies such as General Motors, Chrysler, and Ford were at the center of it until the economic crisis now known as the Great Recession of the late 2000s. The whole market was declining in sales with General Motors and Chrysler taking the biggest hits while Ford only suffered decline comparable to foreign automakers’, Honda and Toyota, levels due to restructuring in prior years. However, the tipping point was edging closer to bankruptcy with General Motors and Chrysler that ultimately
Before the Great Recession of 2009, GM owned a bevy of brands including Chevrolet, GMC, Oldsmobile, Buick, Pontiac, Cadillac, Hummer, and Saturn, including other international brands in Alpheon, Daewoo, Saab, Vauxhall, Opel, Wuling, and Holden. After the recession, bankruptcy, and federal restructuring, the GM United States offerings were left with Chevrolet, GMC, Buick, and Cadillac. GM still has the international automobile companies of Alpheon, Vauxhall, Opel, and Holden, with Daewoo now being a parts subsidiary. But the writing was on the wall as the automotive giant was losing touch with what the American public wanted. Instead of building vehicles the public wanted, GM built vehicles that they wanted to build and thought the public would buy their brand regardless (Boe, Ketler, O 'Keefe, Rubenstein, & Siverio, 2009). But as time marched on, GM became more in debt and grew to be
General Motors is faced with a dilemma. In the face of economic depression, competition from foreign players was driving down profits and the market’s preference was changing to efficient cars due to
General Motors, the “mother company” has faced many troubles in the past, and surfaced. A research by the National Research Council in the United States has revealed in 1992 that there had many impacts and future impacts in the automotive industry, indeed; it would affect the jobs and the internal economy. However, General Motors understood the threat potential that this and established strategic plans to revert the trend. Furthermore, whether General Motor Company was able to change the trend, and it saw the internal and external factors, prepared a strategic plan, Holden being the first brand in Australia, with at least just the 10 % of the population compared with the USA, the way to get a plan looks easier. In addition, it is easier to see a trend in countries with low population and good policymakers. In 2008 General Motors faced again the limit to bankruptcy. A fierce plan to develop and a new business association with FIAT made that GM avoid the dissolution. Even do all Europe have had a similar crisis( Boudette & Choudhury,
Even though GM has been given some advantages, it is experiencing problems in Europe and in South America (Kinicki & Williams, 2013). The home market is proving to be a challenge, also. Toyota and Honda are standing out as stiff competition. One plan to help achieve the profit goal for GM is to reduce auto platforms by
Business 's are the most crucial factor to the Australian economy. Without them, the economy would not be. Their core purpose is to meet the ever-growing demands of consumers, both nationally and internationally, through the production of goods and services. The business this report will be focusing on, which not only operates in Australia but in various countries around the world, most notably; New Zealand, however, also with a slowly expanding market-share in both Asia and the Middle East is the Holden/General Motors group, a well established Australian car manufacturing company, in which holds one of the top market shares for the car industry in Australia.
General Motors is one of the most highly decorated American car manufacturers in the world. Winning top honors from the Global Supply industry (Awards). General Motors earns countless awards throughout the brands of the company year after year. Founded in 1897 by William Durant, General Motors is one of the world’s largest car manufacturers. With Mary Barra’s leadership, General Motors produce cars, trucks, and hybrids. GM owns 18 brands, but their most famous makes are Cadillac, Chevrolet, Buick, and GMC (GM Profile). The purpose of this paper is to pinpoint General Motor’s strengths, weaknesses, opportunities, and threats.
General Motors, more commonly known as GM, is considered, “an emblem of the American spirit, a once and future symbol of America’s success” (Harris, 2010). GM was founded in 1908 and attributes its period of Globalization to the 1980s and 1990s. In 2008, GM filed for bankruptcy during the financial crisis. Today GM has reinvented itself as a four-brand company including Chevy, Buick, GMC, and Cadillac. As an American brand, GM has transitioned through periods of Globalization including state-led globalization and Neoliberal Globalization, and struggles to maintain both global and domestic images.
Founded in 1908, General Motors has been one of the largest corporation and the second largest automaker in the world coming after Toyota. For 77 consecutive years from 1931 to 1908, GM has been a leading automaker and marketer as ranked by the total number of units sold yearly. General motors have also been a leading employer not only in the United States but also in other parts of the world where it operates. However, the company has been seriously affected by the current economic crisis. The Detroit Three, led by General Motors have been a backbone of the United States economy and there eminent collapse in the current economy crisis is likely to have negative impacts on the United State’s
Ever since the 2008 recession US automobile companies have been on a steady downhill slide, but actually you can trace this downward trend even further back than 2008. US car companies have been feeling the heat since as early as the late 1980s when Japanese car companies laid claim to American manufacturing plants . Despite a shot in the arm in sales over the past five years, American firms are still on the decline. This case analysis aims to diagnosis the problem, provide analysis of the problem, and propose a viable solution to the problem from the perspective of the US automobile market share leader, General Motors.
Over the years, the U. S. auto industry's market has been experiencing fluctuations due to many reasons including: price, quality and foreign competition. General Motors Corporation (GM) which had been the leading car and truck manufacturer had been experiencing declining market share and facing stiff competition from both U.S manufacturers and foreign imports such as the Asian auto producers that included Toyota, Honda and Nissan. The main reason for increased foreign competition was that foreign cars were more fuel efficient, smaller, less expensive, and often more reliable than their American counterparts.
The financial crisis starting in 2008 and the following recession hit hard the US auto sector. Traditional car makers had to realise that substantial changes were needed in order to maintain their strong position in the
The characteristics of the global motor vehicle industry are a boom in certain places and a bust in others all due to economic conditions in different nations. Four years after tow of Detroit Michigan’s big three went into bankruptcy American car makers are going “full throttle” with sales in August hitting an annual rate that if substantiated can take them back over 16 million and that is a rate that was last hit before the economic crisis and 80% higher than 2009 when GM and Chrysler went into bankruptcy. The opposite is happening in Europe being in its sixth year slump now and with a weak economy, high petroleum prices and an aging