SWOT Analysis of General MotorsBackgroundGeneral Motors (GM) is a USA based company, in the city of Detroit. GM is the 2nd largest automobile manufacturer in the world. GM specialises in the designing, both private and commercial vehicle, trucks, commercial vehicles, crossover and automobile parts. Research implies that in 2015, GM produced and supplied 9,958 million vehicles which is equivalent to the 11.
2% of the global automotive market. GM has a diverse and strong brand, while operating under 10 differently brands namely, and the Chevrolet, Buck, GMC, Cadillac, Opel, Vauxhall, Holden, Baojun, Wuling and Jiefang. The primary markets of GM are China and the U.S.
(General Motors, 2016). GM STRENGTHS1. Joint Venture with local Chinese automotive CompaniesResearchers attribute the success of GM to its joint venture partnerships in China. In fact, the GM has 11 partnerships in China, which employees over 58,000 employees. Further on, in 2015 the joint venture in China, which showed an increase by capturing a total market share 14,9% compared to it previous year of 5,2%. As a result of joint venture, GM gained access to the Chinese market as well as overcoming foreign market entry barriers and accelerated the company’s entry to other foreign markets (General Motors, 2016). 2.
Strong position in the U.S. automotive marketRelated studies indicate that Ford, GM and Chrysler are the three big traditional automotive brands in the USA. Therefore, making GM as one of the recognized brand in the US market.
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It is apparent that, in 2009, GM experienced bankruptcy and reorganization, but the company managed to secure back its market position as well maintain its position as the largest automotive manufacturer in the USA, currently holds a market share of 17.3% in the US. The primary source of GM revenue is the USA, which is 60% revenue, hence U.
S. is it largest automotive market in the world. Therefore, GM has a competitive edge to its’ competitors (General Motors, 2016)GM STRENGTHS1. Joint Venture with local Chinese automotive CompaniesResearchers attribute the success of GM to its joint venture partnerships in China.
In fact, the GM has 11 partnerships in China, which employees over 58,000 employees. Further on, in 2015 the joint venture in China, which showed an increase by capturing a total market share 14,9% compared to it previous year of 5,2%. As a result of joint venture, GM gained access to the Chinese market as well as overcoming foreign market entry barriers and accelerated the company’s entry to other foreign markets (General Motors, 2016). 2. Strong position in the U.S. automotive marketRelated studies indicate that Ford, GM and Chrysler are the three big traditional automotive brands in the USA. Therefore, making GM as one of the recognized brand in the US market.
It is apparent that, in 2009, GM experienced bankruptcy and reorganization, but the company managed to secure back its market position as well maintain its position as the largest automotive manufacturer in the USA, currently holds a market share of 17.3% in the US. The primary source of GM revenue is the USA, which is 60% revenue, hence U.S. is it largest automotive market in the world. Therefore, GM has a competitive edge to its’ competitors (General Motors, 2016).
Sustainability and environment PoliciesGM is the only automobile company that has signed the ‘Climate Declaration’ agreement and adhered to implementing changes in its’ manufacturing process (General Motors, 2016). Moreover, GM enrolled into US Environmental Protection Agency(EPA) Energy Star energy-reduction challenge in 2010. As-a-result, GM reduced 1.8 million metric tons of carbon emission in 73 US facilities and at the same time avoiding $237 million in energy costs. Interestingly, GM vehicles in 2015 produced vehicles that cut energy by 5.6%. The commitment of GM towards environmental and sustainability policies cuts across its facilities.
In fact, research reveals that GM converted its global headquarters and committed its 122 facilities to landfill-free and actualised policies to work towards 100% renewables energy by 2050. The benefits of the sustainability and environment policies implementation has been translated to GM’s, lower cost, happier communities and clients, positive publicity and strengthened brand image (General Motors, 2016).4. Safe and eco-friendly vehiclesIn 2016, GM safety and eco-friendly policies won an awarded in 5-star safety ratings and the only automobile company in the world to win this award. GM has prioritised safety in its design and building of its new vehicles.
Moreover, GM has been granted a eco-energy patents hence producing eco-friendly vehicles (General Motors, 2016).
