General Motors

Is primarily engaged In the production of vehicles. It designs, manufactures and securities industrys car, trucks, and other automobile parts all in all everywhere the world. GM has a strong fall guy portfolio gives It significant competitive advantage. However, sustained decline in send off vehicle sales as a expiration of increasing durability of vehicles and weak economic conditional pressure on the overall performance of the company. strengths Global presence New vision and strategy virile grass portfolio knock-down(prenominal) presence in China weaknessHigh cost structure Brand dilution Bureaucratic close Car recall familiarity of home marketplace 4 strong performing brands Threats Opportunities Positive military capability toward green vehicles Fluctuating fuel prices Increasing fuel New emission standards prices Changing customer take Growth through acquisition Rising fresh material prices Intense competition Exchange evaluate Strengths Global presence, GM wa s the leading auto manufacturer in terms of sales for 77 historic period until 2007. The business has grown its presence In the world and is now operating in 157 countries, while its Chevrolet brand reached world record sales (4. million units). New vision and strategy. after 2008 bailout. GM has experienced major changes and reorganized the way it does business. New members were appointed to the firms management team with Daniel Akerson as the CEO. He shook GMs bureaucratic organizational culture and introduced new strategy and visions to the business, GM became smaller but wizen and is becoming more. Strong brand portfolio, GM currently sells 18 automobile brand to satisfy as many customer needs as possible. The most popular brand ar Cadillac, Buick GMC, and Chevrolet that sells very well In USA and china.Chevrolet reached global sales record and sold 4. 95 million units in 2012. Strong presence in China, China is the largest automotive market and Is an emerging economy that grows steadily. It is also the flake largest market for GM in terms of vehicle units sold. An early entrance into China, well performing partnerships and local Buick brand ar the main reasons why GM has a strong position in Chinas automotive market. Knowledge of home market, GM is the largest car manufacturer In US and currently holds more than 18% market share. 1 OF3 I nls Is malnly Oue to extensive Knowledge 0T market ana Its consumer. well performing brands, GMs has one of the highest cost structures compared to all automobiles manufacturers. GMs Cadillac, GMC, Chevrolet, and Buick are among the best-selling brands in US and China and brings in more than 80% of all normal Motors sales. Weakness High cost structures, GM has one of the highest cost structures compared to all automobiles manufacturers. GM costs are driven by its generous employee compensation and pension plans. Although GM has reduced its cost after 2008 it simmer down has a lot to do to become cost competitive. Brand dilution, GM controls 18 automobile brands that vary in quality and are sold in separate markets. With so many brands in sales, customers find it ticklish to identify which brand belongs to GM family, as only one of 18 brands carry GM letters. The result is lower GM brand awareness. Bureaucratic culture, before reorganization in 2008, GM was infamous for its firm culture and structure. Since them, the company has made some cultural and structural changes but should continue improving as it isnt as quick as it competitors in reaching to constantly changing environment.Car recall, last year, General Motors ecalled 119,000 pickups repayable to missing hood latch. The same year it had to recall it Chevrolet volt and fix battery problems. Recalls are pricey and damages brand reputation, especially when the company announces them so often. Opportunities Positive attitude toward green vehicle, today consumers are more aware of the negative effects (air pollution) caused by cars f ueled by petrol and diesel. Large quantities of C02 emission intensity greenhouse effect, and negatively impact the life on earth, and thus, consumers are more likely to debauch new hybrid and electric automobileal cars hat emit less c02.Increasing fuel price, increasing fuel prices indeterminate up large markets for GMs hybrid and electric cars as consumers shift toward cheaper fuel types. Changing customer needs, by introducing new cars models, General Motors would be able to meet changing customer needs for smaller and more fuel-efficient cars. Growth through acquisitions, GM has successfully acquired many car companies in the past and should continue doing so to gain new skills assets and access to new market. Threats Fluctuating fuel prices, due to increasing extraction of shale gas, futurity fuel prices hould drop and make electric and hybrid cars less attractive.GM would treat the project of hybrid and electric cars as losses, rather than perspective future cars. On the ot her hand, steeping fuel prices would make current GM models less attractive to cost conscious consumer lower amounts of fuel. New emission standards, a new curve for stricter regulation on vehicle emission standards may negatively affect GMs finances. The corporate would have to set up large amount of money to comply with these new standards. Rising raw material prices, rising prices for raw metals will lift he cost for auto manufactures and result in squeezed profits for the companies.Intense competition, for 77 historic period from 1931 to 2007, GM led global sales of vehicles, but lost its position in 2008 due to change magnitude competition of cheaper and better quality cars, especially from Japan and South Korea. Exchange rates, China are GMs second largest market and the business earns huge profits there. Exchange rate fluctuations threaten GMs profits if the dollar would assess against Chinese renminbi.