We accept

SWOT Examination of General Motors

General Motors (GM), one of the world's major vehicle manufacturers founded in 1908 and its own global head office situated at Detroit, United States. GM does the business enterprise in more than 120 countries. Basic Motors and its own lovers produce the vehicles in around 30 countries. GM is the world's major automobile manufacturers and has been the worldwide sales head going back 77 years. As of 2008, Standard Motors has utilized more than 250, 000 people surrounding the world and became the 9th largest publicly traded company on the globe. Lately, the global tough economy has made a huge impact on the company cash flows and its finances. To maintain as a global innovator in the highly competitive vehicle industry the GM needs to have its own tactical plan to produce another era of vehicles and it's got virtually no time to delay. That is an essential time for automobile industry with many hazards, but opportunities as well. The company has to choose the best "opportunities" to conquer the "threats" and "weaknesses" using its "strengths". The next many years will redefine GM.

General Motors Quest Statement:- "G. M. is a multinational company involved in socially dependable operations, worldwide. It is dedicated to provide products and services of such quality that our customers will acquire superior value while our employees and business associates will share in our success and our stock-holders will receive a sustained superior go back on the investment. "

General Motors Eye-sight Statement:- "Over the past 100 years, GM is a leader in the global motor vehicle industry. And another a century will be no different. GM is focused on leading the industry in option energy propulsion. "

SWOT Analysis

The overall analysis of the company's Strength (S), Weakness (W), Opportunities (O) and Risks (T) is named as SWOT Analysis

The SWOT Analysis enables a business to identify its position in the market and take up strategies appropriately. Here SWOT analysis of General Motors was created to understand the setting of the company better.

The SWOT analysis is a frequently used structure in the business world for analysing the factors that effect a company's competitive position on the market with an eye to the future

Below is the SWOT evaluation of General Motors.


1. Huge Market Show:

Though General Motors show value has dropped in the US market. But nonetheless it's very competitive at around 25%. The GM show value is significantly increasing in Chinese language market and in few other countries. With the right decisions and appropriate proper plans, the General Motors definitely will be the automobile market leader once more as it was.

2. International knowledge:

As mentioned above, the GM show market value is down at the moment. But their talk about value is significantly increasing. So they still have period to bounce back. For this, international market knowledge is essential. As we know, General Motors is a worldwide company for more than 90 years as well as have already turned out themselves as a global leader. If indeed they do right planning and proper execution using their corporate strategies, it's very easy to attain their goals and be a global leader once again.

3. Wide range of Brands:

General Motors has got its branches in around 120 countries and has been a global head for so a long time. A big reason behind that is a wide range of its brands. So it can offer with all types of markets. The present brands of GM are: Chevrolet, GMC, Cadillac, Buick, Pontiac, Saturn, Hummer, Saab, Daewoo, Opel, and Holden.

4. Satellite tv Equipment:

General Motors has subscribed with the Dish technology and all Standard Motors vehicles have built in with this technology. This equipment tracks the vehicle during emergency and theft. This implies if the automobile is stolen, we may easily locate the automobile with satellite indicators. This is very advanced technology which can be used by GM. This became their strength to contend with the existing market.

5. Innovative ideas and advanced technology:

General Motors and NASA engineers establishing a mission to launch Robonaut 2 to the International Space Place for the space shuttle Finding. GM and NASA working jointly about the main element technology on the humanoid automatic robot. They are using advanced sensor and eyesight systems on this robot. This can help in being able to access all space information from the earth.


General Motors produces the product quality product. It has turned out in the American customer satisfaction index in 2010 2010. Standard Motors innovations such as Buick & Cadillac has placed 2nd & 3rd in client satisfaction. The GM brands placing in top 10 brands in US. Its sales increased by around 2. 5% compared to last year sales.


General Motors is in the world market for nearly a hundred years now. But they are still using old and out dated technologies in the auto manufacturing. So, they can't contend with the new tendency. Until they produce new technology which is unique when compared to its rivals and affordable to common man, it can't become the global leader as before.

Least energy substitutes:

This is Standard Motor's biggest weakness. General Motors is very back of in the market in terms of substitute energy vehicles. The substitute energy and cross technology vehicles began occurring in the auto industry. But GM didn't focus on these facts. It has resulted in loss of show market and reduces in profitability. To be able to flourish in this, they must produce the vehicles with an increase of petrol efficiency using cross technologies.

Poor marriage between management and employees:

General Motors does not have a good romantic relationship using its employees. It preserves poor relationship with top to bottom level at all levels of employees. It leading to less communication between employees and this led to failures in substitute energy / hybrid systems and new inventions to contend with the new craze.

Completely concentrating and relying on US market:

General Motors highly and totally depended on home country market. GM must take an chance to expand and focus on global market as well. Though it's got its branches in 120 countries, GM is not focusing on those market segments. Ones it's started acting positively on global market, it can simply become a global leader. Within the recent years the auto industry is becoming too competitive to survive. In this situation, to count on just one country is wii signal.

Decreasing Credit condition:

General Motors Credit condition has significantly decreasing in these days. Their present percentage of the credit is just above 1. Despite the fact that GM is not getting refused for the credit at this point. Nonetheless it is a serious concern that GM must think on. If the credit ratio moves further down, no person will accept for the credit to GM.

Low course products/services:

General Motors producing the reduced quality products when compared to other competitors due to its financial position. Because of the global downturn in the recent years, GM Company's cash flows and financial position are seriously damaged. As a result of this reason, the business is struggling to spend much on the materials and that leading to to low quality products/services in comparison to its earlier years. When GM was ruling the global market, it used to produce very good quality products. That's why GM was the global leader for so a long time. Insufficient quality in the merchandise of these times making GM backwards in your competition.

Unproductive online marketing strategy:

General Motors marketing strategies are turned out as failures. Their strategies are restricted to very few countries. Certainly those strategies do not suit to all the countries as each country has got different market conditions. The company has to focus globally to attain the destination. So that it must apply the ground breaking and unique strategy to achieve its targets.


Substitute Energy improvement:

It is very clear that Basic Motors is very behind in the market in conditions of substitute energy / cross types vehicles. To be able to flourish in this, they must produce the vehicles with an increase of gasoline efficiency using cross technologies. Hybrid technology is still new in the market and supplying an opportunity to Basic Motors to compete with the new trend and become a global leader once again. To achieve this, GM has to do the great deal of research about cross vehicles, apply appropriate strategies in right way with its innovative systems.

As per GM standard reports, Standard Motors produces several hybrid models in the US. They are- Saturn Vue and Aura Hybrids, Chevrolet Malibu and Tahoe Hybrids, GMC Yukon Cross and Cadillac Escalade Cross types. The business is investing greatly in hybrid models for its cars & trucks. Demand for light cross types electric vehicles is likely to be increasing swiftly in the global market. The amounts of these light cross types electric vehicles are anticipated to reach practically 5 million products by 2013. So these vehicles will definitely help improve the sales of GM as these vehicles are environmental friendly.

Employee-Employer Marriage:

As mentioned previously the poor romance between GM and its own employees as become one of the disadvantages for its development. In case the GM concentrates on identifying the issues of its employees by firmly taking feedback and resolving the employee's issues then this might turn into a good chance for the GM to boost its expansion in skilled world.

More give attention to Global Market:

As we realize, General Motors is totally relying only on US Market. The Company must take an possibility to expand and focus on global market as well. GM sales have been significantly increasing in Chinese vehicle market. This claims that GM has to put more focus on the international market simultaneously with US market. They can preserve with the current competition and be the global innovator.


The GM must have proper online marketing strategy in spot to attract the clients by introducing low interest rates, other techniques and advanced solutions. This sort of online marketing strategy would lead to increase in sales. Also the online marketing strategy should be completely predicated on the research of market, customer feedback and ideas.

Updating vehicle models according to Trend:

The GM should always be updating the vehicle models with new and progressive ideas predicated on the customer needs. Also advanced feature solutions should be presented which might be required by the client in forseeable future. This factor would make GM unique from other opponents. As everybody knows that in motor vehicle industry whatever is new today will be outdated tomorrow, so always try to upgrade with the latest technology.


Ongoing Financial Crisis:

From last couple of years, every business is striving hard to preserve its position in its market as a result of ongoing global downturn. There have been strong predictions for global overall economy slowdown in 2009 2009 and it carried on to the entire year 2010 as well. Right up until now there is not any much progress of the global current economic climate. This rising financial meltdown is creating worry in every firm as individuals are lessening. Especially in automobile industry, the individuals are showing no interest in less gas efficiency vehicles such as big vehicles which needs more gas and activities vehicles that have been the overall Motor's key profitable business. This financial crisis has also led to less credit market. Because of that most of the individuals are not able to get finance to buy the automobiles.

Rising Competition:

General Motors used to be one of the leading auto industries and appreciated the global leader position for quite some time. That is known reality Basic Motors is forget about enjoying the global leader position using its increasing competition. In fact, Basic Motors is backwards in conditions of current competition. One of the facts which support this statement is that the Toyota has considered the first initiative step to follow the cross technology. While Standard Motors has expanded its market globally, it is facing an immense competition from your home automobile companies worldwide. To maintain from the growing competition, the automobile industries are providing huge savings, financial programs and extensive range of bonuses that happen to be helpful in minimizing the automobile prices. These offers are effecting directly on General Motors costing and success.

Increased Fuel Prices:

Fuel prices are increasing dramatically day by day. Basic Motors is greatly producing the large trucks and cars which have got less gas efficiency. Due to a rise in fuel costs, these vehicles have lost its demand greatly and every consumer is enthusiastic about hybrid technology vehicles and even more gas efficiency vehicles. It has got a poor impact on Standard Motors and the business has to devote to studies for these technology. But we can see this as an chance to produce the new technology vehicles. A lot more threats you will find, a lot more opportunities you will get. General Motors has got the same situation here. As the risk of increased fuel prices given an chance to General Motors to produce hybrid and high fuel efficiency vehicles to support in the competitive market.

Pension System:

General Motors has introduced a pension design earlier to its employees. This seems to

be a good notion at that time as it was benefiting the employees and also protecting their future. But when the pension maturity time has come, it has become difficult for the overall Motors to payback their pension total the employees as the General Motors has lost its position as global leader and the gains seem to decrease. Also other factor was increasingly more employees started collecting their pensions which was difficult for the General Motors to payout huge amounts at same time.

Health Allowance:

General Motors has presented health allowance to its employees earlier. As this was a good coverage for their staff as it shows the caring of the General Motors towards its employees. As time exceeded because of it became problematic for it to maintain and run this program as it involved whole lot of costs like Treatments, Doctors and so on.

Increasing Materials Cost:

As the time changing the cost of the material has been increasing significantly. Especially

this offers its impact greatly on car industry. Every automobile industry is very enthusiastic to decrease its material, manufacturing and production costs. However they are not concentrating on the grade of the product. General Motors is no way exempted from this. This company is also following same route. So this is the primary threat to the business as this may have its effect on the business sales.


General Motors, which lost its position as global head in 2008 for the very first time in practically eight ages. From then Toyota is leading the market with no. 1 position using its cross types technology.

General Motors two main big marketplaces are USA and China using its more sales by 2 million this past year. General Motor's expansion in america, while slower than the industry's average, outpaced Toyota's small drop with a 6. 3 percent surge. In China, Basic Motor's sales soared 29 percent, conquering Toyota's 19 percent climb.

Present financial position of Basic Motors is as follows-


$104. 589 bil


$104. 821 bil


$137. 238 bil


65000. 0

It is an acknowledged fact that Standard Motors is certainly going through trouble now. This is the company which liked the global leader position for nearly eight decades. Precisely the same company is facing entirely different situation now. That means somewhere over the line they go wrong. They must analyse the exact known reasons for its sudden failing and use proper ways of overcome this issue.

As brought up in the introduction, the General Motors has got its branches in 120 countries. So the GM has got a unique opportunity to analyze the global market broadly. Not everyone will have this opportunity. Standard Motors can successfully utilize this and can decide the best global market strategies easily to conquer the current circumstance.

Few things that Basic Motors must concentrate because of its best future- to concentrate more on global market (instead of concentrating only on US market), more research on cross technologies, produce more energy efficiency vehicles and go for the new technologies suitable to the present trend.

General Motors must convert its weaknesses into its strengths predicated on available opportunities and also lessen its risks. If General Motors can take these appropriate actions, then there is no hesitation the GM can certainly turn into a global leader once more. Hope another many years will redefine Basic Motors.

More than 7 000 students trust us to do their work
90% of customers place more than 5 orders with us
Special price $5 /page
Check the price
for your assignment