{"id":4424,"date":"2014-05-08T19:35:21","date_gmt":"2014-05-08T19:35:21","guid":{"rendered":"http:\/\/www.marketingteacher.com\/general-motors-swot\/"},"modified":"2024-10-26T12:34:25","modified_gmt":"2024-10-26T11:34:25","slug":"general-motors-swot","status":"publish","type":"post","link":"https:\/\/marketingteacher.com\/staging\/5483\/general-motors-swot\/","title":{"rendered":"General Motors SWOT"},"content":{"rendered":"<h1>SWOT Analysis General Motors<\/h1>\n<h2>Introduction<\/h2>\n<p>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 \u201cas GM goes, so goes the nation\u201d. Long known for the manufacturing of cars, trucks and automobiles, General Motors has also engaged in finance and insurance.Would you like a lesson on <a href=\"https:\/\/marketingteacher.com\/staging\/5483swot-analysis-marketing-tools-from-marketing-teacher\/\">SWOT<\/a> analysis? <\/p>\n<h2>Opportunities<\/h2>\n<ul>\n<li>\n<p><strong>Growth Potential in India and China<\/strong> &#8211; There are positive projects for GM business in China and India. In   China the market for new cars is in the midst of a 14% growth rate   projected to reach over $97 billion in 2008.  Meanwhile in India, the market for new cars grew by 15.5% in 2008 to a   dollar value of $28 billion. A sign that India will play an even bigger   is the projected increase to 2.5 million units by the end of 2013.<\/p>\n<\/li>\n<li>\n<p><strong>Increased Global Truck Market<\/strong> &#8211; Steady growth rates are projected in the next few years. The market&#8217;s   volume is expected to rise to 21.5 million units by the end of 2013.   The light commercial vehicles segment was the market\u2019s largest in 2008,   generating total volumes of 9.8 million units, equivalent to 58.1% of   overall value.<\/p>\n<\/li>\n<li>\n<p><strong>Rising Demand for Hybrid Vehicles<\/strong> &#8211; General Motors produces six hybrid models in the US including the   Saturn Vue and Aura  Hybrids, Chevrolet Malibu and Tahoe Hybrids, GMC Yukon Hybrid as well as   a Cadillac Escalade Hybrid. The company is also investing in hybrid and   plug-in vehicles, for both cars and trucks. It is anticipated that GM   will produce up to nine hybrid models following the introduction of the   Chevrolet Silverado Hybrid and GMC Sierra Hybrid. 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\u2019s products.<\/p>\n<\/li>\n<\/ul>\n<h2>Threats<\/h2>\n<ul>\n<li>\n<p><strong>The Continuing Global Recession<\/strong> &#8211; 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\u2019s   most profitable products. In addition, the economic climate has resulted   in tighter credit markets making it harder for consumers to finance   automobile purchases.<\/p>\n<\/li>\n<li>\n<p><strong>Weakness in Global Automobile Industry<\/strong> &#8211; 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.<\/p>\n<\/li>\n<li>\n<p><strong>Intense competition<\/strong> &#8211; GMs financial status makes it vulnerable to fierce competition from   fits such as AB Volvo, Bayerische Motoren Werke, Daimler, Fiat Group   Automobiles, Ford Motor, Honda Motor, Hyundai Motor, Isuzu Motors, Mazda   Motor, Nissan Motor, PACCAR, PSA Peugeot Citroen, Renault, Toyota Motor   and Volkswagen. Many have responded to the crises by adding vehicle   enhancements, providing subsidized financing or leasing programs in   order to sell more vehicles. They are also offering option package   discounts, other marketing incentives and are reducing vehicle prices in   certain markets. These actions are expected to have a negative effect   on GM\u2019s vehicle pricing, market share and operating results particularly   on the low end of the market.<\/p>\n<\/li>\n<\/ul>\n<p>General Motors, one of the world&#8217;s largest automakers, traces its   roots back to 1908. With its global headquarters in Detroit, GM employs   204,000 people in every major region of the world and does business in   some 140 countries. Read more&#8230;<\/p>\n<p class=\"note\"><strong>Disclaimer: <\/strong><br \/>This case study has been compiled from   information freely available   from public sources. It is merely intended to be used for educational   purposes only.<\/p>\n<p>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 bailout plan and its employees the United Autoworkers of America, has also made concessions. This <a href=\"https:\/\/marketingteacher.com\/staging\/5483swot-analysis-marketing-tools-from-marketing-teacher\/\">SWOT analysis<\/a> is about General Motors.<\/p>\n<h2>Strengths<\/h2>\n<ul>\n<li>\n<p><strong>Branding<\/strong> &#8211; Born in Detroit Michigan in 1910 General motors has produced a stable   of automobiles such as Chevrolet, Pontiac Cadillac and Buick which have   become household names in the U.S. As such, the General Motors Brand is   well rooted not only in America but throughout the   world.<\/p>\n<\/li>\n<li>\n<p><strong>Worldwide Presence<\/strong> &#8211; General Motors truly has an international presence with factories in   Poland, Russia, South Africa Ecuador, Egypt, Germany, Argentina,   Australia, Belgium, Brazil, China, Colombia, South Korea, Spain, Sweden,   and Thailand. The company is even in Viet Nam. In addition, it also has   assembly, manufacturing, distribution, office and warehousing   operations in 55 other countries.<\/p>\n<\/li>\n<\/ul>\n<h2>Weaknesses<\/h2>\n<ul>\n<li>\n<p><strong>Diminishing Dealer Network<\/strong> &#8211; General Motors has compiled a list of more than 1,000 dealerships   market for closure. The company has announced that it will not renew its   franchise agreements with nearly one quarter of its U.S. dealerships.   As of December 31, 2008, GM had 715 dealerships in Canada, as recent as   May of 2009 plans called for a anywhere from 40 to 200 closures.<\/p>\n<\/li>\n<li>\n<p><strong>Insufficient Liquidity<\/strong> &#8211; General Motors has experienced a reduction in liquidity to $14   billion in FY2008 from $27.3 billion in 2007. Losses are attributed to   lower sales volumes and a reduction in working capital. Both research   and development, as well as relationships with suppliers are negatively   affected by the reduced liquidity.<\/p>\n<\/li>\n<li>\n<p><strong>Inadequate Performance among Some Business Segments<\/strong> &#8211; In 2008 the GME segment accounted to 21.8% of the total revenues and   its revenues decreased 8.8% to $32,440 million. Other business segments   experiencing declines include GMNA which fell 23.9% to $82,938 million,   and GMAP which stood at $12,477 million for FY 2008, a decline of 15%.<\/p>\n<\/li>\n<li>\n<p><strong>Low Debt Ratings<\/strong> &#8211; Four independent credit rating agencies assess GMs debt ratings and   ability to pay interest, dividends and principal on securities. Moodys   Investor Service, Fitch Ratings DBRS and Standard &amp; Poors evaluate   GM. As of 2008, all four had downgraded their assessment ratings for GM.<\/p>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>General Motors SWOT is one of 50+ FREE examples of SWOT analysis on Marketing Teacher.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","footnotes":""},"categories":[13],"tags":[],"class_list":["post-4424","post","type-post","status-publish","format-standard","hentry","category-swot-analysis-examples"],"_links":{"self":[{"href":"https:\/\/marketingteacher.com\/staging\/5483\/wp-json\/wp\/v2\/posts\/4424","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/marketingteacher.com\/staging\/5483\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/marketingteacher.com\/staging\/5483\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/marketingteacher.com\/staging\/5483\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/marketingteacher.com\/staging\/5483\/wp-json\/wp\/v2\/comments?post=4424"}],"version-history":[{"count":1,"href":"https:\/\/marketingteacher.com\/staging\/5483\/wp-json\/wp\/v2\/posts\/4424\/revisions"}],"predecessor-version":[{"id":7809,"href":"https:\/\/marketingteacher.com\/staging\/5483\/wp-json\/wp\/v2\/posts\/4424\/revisions\/7809"}],"wp:attachment":[{"href":"https:\/\/marketingteacher.com\/staging\/5483\/wp-json\/wp\/v2\/media?parent=4424"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/marketingteacher.com\/staging\/5483\/wp-json\/wp\/v2\/categories?post=4424"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/marketingteacher.com\/staging\/5483\/wp-json\/wp\/v2\/tags?post=4424"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}