The General motors company is an automobile company that is based out of Detroit, Michigan. There are approximately 396 facilities that cover six different continents and speak fifty different languages. There are 212,000 employees that work for this company and they work in twenty-three different time zones. This American automobile company needed to be revamped after the recession period that occurs in 2006. There was a need to reorganize the company to meet the final goals of the individual brands and provide access to newer automobile technology that will help in repaying the government for bailing the industry out. Expansion of general motors is an important aspect that needs to be considered in the modern world to ensure that the vehicle electrification is happening by focusing on advancements in electric motors. Power controls and batteries.
There is a SWOT analysis that was done of this company to analyse the strengths and weaknesses.
The strengths of the company include assessing the market dominance, General motors is a largest auto manufacturer in the Unites States and also leads in the terms of market share with 16.9% in 2019. The innovation capacity of the company is also present and that is poised to become the first deliver to million-mile electric vehicle battery to market. It also has huge investments to the research and development of the company. The consumers have also considered the cars of this automobile company to be the safest and sturdy use and a good purchase decision. This is the only car maker who has received a five-star safety. This car brand also boasts of a unique brand portfolio as well as excellent sales strategy along with revenues and profits that are higher and they stand on the 41st position globally.
The weakness of the company includes that the sales of the General motor’s cars have decreased by 2.9% as they rely on the pickup trucks and the decreased in the pickup trucks contribute to the 2% of the decreases. The other issue that arose was the news that revealed that there was cheating on the level of emission of the trucks for almost 5 years almost from 2011-2015 which mainly caused a degree of mistrust. There was an issue in quality issue that was noted as there were slight defects that were seen that included the use of defective ignition switches in millions of its vehicles that were responsible for almost 275 injuries and 124 deaths that occurs. The highest sales that were procured for this company was from the United States even though they are globally available. With the decrease in the sales in United States there was a very high decline in the sales that affected the company’s sales.
The opportunities that the company has includes the focuses on eco friendly options that should be included. There is an increase in the market for eco-friendly cars and therefore, the company s trying to focus on batteries for electric cars and this is a perfect opportunity that should be implemented to exploit the demand that is present. The global presence of the company also includes Africa and Asia. However, the market share is meagre and therefore, the company should aim to increase the market share in these regions to strengthen their presence. In the future and currently demand includes state of the art self-driving cars that will increase in demand later on. There are self-driving cars that has been adopted by the company and offers invaluable growth and opportunity to expand in this area.
The main threats that have affected or can potentially affect the growth of the company includes a global recession such as the effect of the pandemic that has devastated the economies and the sales of the company in China has dropped by 43.3% in the first quarter of 2020. The tension in trade that is present between China and United States was still unresolved and that caused an issue in the market of United States which lead to the decrease in sales. There was also an issue with labour with the major strike that happened in 2019 there were 48,000 workers that were included in the strike and that cost more than a 2-billion-dollar loss and if the strike reoccurs and is persistent it can lead to difficulty in sustainability. There have always been specific companies that are in the bandwagon of competition and these include Toyota and Volkswagen, Mercedes and BMW and cool electric cars Tesla. These companies can cause strong competitors that can always cause threat.
The PESTEL analysis of the company was also done to determine the different factors that affect the growth of the company.
The external political factors that are relevant in the case of the company include the governmental promotion that are done of public transport and other alternatives. The threat that exists also includes the aggressive tax policies on the combustion-type automobiles. The political stability in major markets is an opportunity that presents for the company’s growth.
The economic factors that affect the growth of the company include the developing markets that offer high growth rates and opportunity of the company. In the major markets there is also a presence of economic stability in the major markets that allows the company to receive and expand the brand in the market without facing major losses or issues that may affect the growth of the company. The sociocultural aspects mainly highlight the situations that will determine the responses and effects that the consumer has on the car brand. The factors that affect the company externally include the increase in the demand of electric vehicles that is presenting as an opportunity as this demand is present from the consumers perspective. The increasing demand doe self-driving cars has also seen a boost in this industry and this is an opportunity that needs to be accepted by the company. For this company the threats that exist socially is the share and drive programs that have been implemented, which will have an impact on the sales of the company.
The technological factors that can positively affect and are relevant in this company include the implementation of the sociocultural factors in a way such as implementation of the self-driving cars will increase the demand and supply of rh cars and that will internally increase the profits and sales. This will create opportunities for the company, along with developing advanced automobiles with competitive technologies and fuel-efficiency rates that will provide an edge to the car that is produced in this company. The electric vehicles development needs to be increased as well that will help in the sales and providing an equal opportunity that will help in the sales. To ensure that the ecological factors are addressed the points that should be considered are ensuring that air qualities are taken into account and opportunity to enhance the electrical or hybrid automobiles is addressed. The sustainability can be increased and addressed by making changes that will lead to sustainable improvements in the brand such as raising interest in the business opportunities that are present and can be used to expand.
The legal factors that affect the company include expanding regulations to the automobile safety, increasing he environmental regulation and having more stringent emission regulations.
Business Strategy Hub, 2018. General Motors SWOT Analysis | Business Strategy Hub. [online] Business Strategy Hub. Available at: <https://bstrategyhub.com/general-motors-swot-analysis/> [Accessed 2 July 2021].
Dines, P., 2018. A General Motors case study. [online] Rucforsk.ruc.dk. Available at: <https://rucforsk.ruc.dk/ws/portalfiles/portal/62533398/General_Motors_Project.pdf> [Accessed 2 July 2021].
Fern Fort, 2017. General Motors Company PESTEL / PEST & Environment Analysis[Strategy]. [online] Fern Fort University. Available at: <http://fernfortuniversity.com/term-papers/pestel/nyse4/672-general-motors-company.php> [Accessed 2 July 2021].
GeneralMotors, 2016. General Motors Case Study - Writer Tools. [online] Writer.tools. Available at: <https://writer.tools/subjects/b/business/general-motors-case-study> [Accessed 2 July 2021].
Henry, Z., 2018. General Motors PESTEL Analysis. [online] Available at: <https://www.case48.com/pestel-analysis/12615-General-Motors> [Accessed 2 July 2021].
Pratap, A., 2016. General Motors Pestel Analysis. [online] notesmatic. Available at: <https://notesmatic.com/general-motors-pestel-analysis/> [Accessed 2 July 2021].
YOUNG, J., 2017. General Motors PESTEL/PESTLE Analysis & Recommendations - Panmore Institute. [online] Panmore Institute. Available at: <http://panmore.com/general-motors-pestel-pestle-analysis-recommendations> [Accessed 2 July 2021].
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