7General

Motors

Presented by :

Mayuresh kumar

batch III

General Motors General Motors Corporation (GM) is a

multinational automobile manufacturer founded in 1908 and headquartered in the United States.

As of 2008, General Motors employs about 266,000 people around the world.

It manufactures its cars and trucks in 35 different countries and sells them under the brands of Buick, Cadillac, Chevrolet, GM Daewoo, GMC, Holden, Hummer, Opel, Pontiac, Saab, Saturn, Vauxhall, and Wuling.

Genera l motors

As of 2008, General Motors is the ninth largest publicly traded company in the world.

In recent years the company has endured significant financial turmoil, including a 38 billion dollar loss in 2007.

GM needs a sense of urgency regarding revising a strategic plan that incorporates the next generation of vehicles.

In today’s global economy and highly competitive auto industry GM has no time to procrastinate.

As stated, GM has just too much at risk in not becoming an industry leader in alternative fuel technology

Competitor’s Analysis

Ford Motor Company: Ford has been focusing on

cutting costs to increase margins more than its competitors. It has used reverse engineering in the development of their products. Thus Ford has been an innovator in the auto industry.

Damiler Chrysler:

The DaimlerChrysler umbrella covers many well known brands such as Dodge, Chrysler, Mercedes Benz, and Jeep.

Honda Motor Company:

Honda motor company is not your average Japanese car manufacturer. Originally know for motorcycles, Honda has managed to elude the dominate keiretsu system in Japan and become one of the dominant automobile manufactures in the world.

Toyota Motor Corporation: Toyota has three major brands underneath the company umbrella; Toyota, Lexus, and Scion. By having these three distinct brands, it lets the company reach many sectors of the globe in a choice of vehicle for customers.

SWOT AnalysisS = Strengths

W = Weaknesses

O = Opportunities

T = Threats

Strengths: 1. Large Market Share

2. Global Experience

3. Variety of Brand Names

4. GMAC Customer Financing Program

5. OnStar Satellite Technology

Weaknesses: 1. Behind on Alternative

Energy Movement

2. Poor Organizational Structure

3. Stagnant Profitability

4. Overly Dependent on US market

5. Overly Dependent on General Motors Acceptance Corporation (GMAC) Financing

6. Poor Credit Status

Opportunities: 1. Alternative Energy

Movement

2. Continuing to Expand Globally.

3. Low Interest Rates

4. Develop New Vehicle Styles and Models

Threats: 1. Rising Fuel Prices

2. Growth of Competitors

3. Pension Payouts.

4. Increased Health Care Costs

5. Rising Supply Costs, i.e. Steel

Core Competence: The core competence of General

Motors is innovation. This is the driving force behind its $190 above turnover. General Motors has been utilizing innovation in service ad technology to secure itself a dominant position in the automobile industry, since 1908.

In 1911, it conceptualized, engineered and commercialized the self-starter engine for the first time. Then in 1926, its product Cadillac was the pioneer in devising a nationwide service strategy.

Core competence(cont.)

In 1996 General Motors introduced OnStar satellite technology which allows equipped vehicles to be tracked in case of an emergency or theft and allows the passengers to communicate with OnStar personnel. Other new car concepts include minicars such as Chevy Aveo.

Financial Results Based on the GM’s

consolidate net sales and revenue, it shown that General Motor Corporation revenue has been falling to $ 192.6 billion in 2007 from 193.5 billion in 2004. GM incurred a consolidated net loss in 2007 of $ 10.6 billion, compared to net income of $ 2.8 billion in 2004.

In the last 1990s, GM had regained market share up $ 80 a share. In 2000, the interest went up by the Federal Reserve to quell the stock market and a severe stock market decline following the September 11, 2001 attacks.

Financial Results (cont.)

The current stock market price of General Motors are falling between $28- $29 per share. It has been falling down gradually in the past six years.

General Motors North America market share in 2007 fell to 25.5% compared to 26.7 in 2004.

Suggested Strategies Below is a list of possible

strategies General Motors could use to redirect profits and be able to maintain survival for the future.

1. Market Development

2. Market Penetration

3. Product Development

4. Restructuring

5. Retrenchment

6. Liquidation

Porter’s Five-Forces Analysis Rivalry between existing

competitors

Threat of entry by new competitors

Price pressure from substitute or complementary products

Bargaining Power of Buyers

Bargaining Power of Suppliers

Evaluation: The biggest thing for General Motors is to

develop a Hybrid vehicle that will maintain the pace of the competition for the firm as well as one that will stand out from the crowd to make the product new and exciting. Creating a Hybrid SUV is a brilliant idea and if GM can pull that off by the end of 2007 the future could look very bright for them. The company has a huge background proving that they can maintain being number one, it's just a matter of product development being maintained and refocusing products to the correct target markets.

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