Prepared by:
Murtaza Ahmad
MPA(4th semester)
Institute of Management Science Peshawar
(Pakistan)
General Motors Company is organized on September 16, 1908
Today, GM is recognized as the world’s largest automaker
Global automotive sales leader since 1931
Has manufacturing operations in 32 countries and its vehicles are sold in 200 countries .
•GM is large automobile manufacturer company. Unit of GE•Suffered due to large globe financial crises 2007 and economic turn down.•Has too many popular & leading brands (HUMER, SAAB, GMC, CHEVERLOVET) and Have 46 plants•Once GM common stocks were traded at Newyork stock exchange face value $93 per share, due to recession it fall $1 per share. Which face the company bankruptcy situation.
US Govt bill out worth of $16 billion and GM cope the crises.
US Govt took more than 62% shares of GM, while 7% shares purchase by Canadian Govt.
HUMMR, SAAB & GMC were liquated and the total of plant reduced to 36 from 46
GM financial statement(2008)
Revenue Operating income
Net income
Total assets
Total equity
$148.97 billion
$21.28 $-30.9 $91.047 $-86.154
Market shares (February 2009) vs Competitors
NISAN 8.1%CHRYSLER 9.8%HONDA 11.0%TOYOTA 14.1%GM 16.2%
WHO ARE THE GM COMPETITORS
SWOT ANALYSIS
STRENGTH Large market share Global experience Variety of brands On star satellite technology
WEAKNESSES
Behind on alternative energy movement
Poor Org structure Stagnant profitability Over dependency on US market Poor credit status
OPPORTINITIES
Alternative Energy Movement Continuing to Expand Globally. Low Interest Rates Develop New Vehicle Styles and
Models
THREATS
Rising Fuel Prices Growth of Competitors Rising Supply Costs, i.e. Steel
IFE MATRIX
EFE MATRIX
Cars Trucks
SUVs
Star Questio
n Mark
DogCash Cow
highlow
lowhigh Market Share
Gro
wth
rate
BCG MATRIXlo
w
CPM
Bargaining Power of Suppliers:
Moderate
GM has the largest market share in the US which could give it much power over suppliers but it has not used that and looks at suppliers and their needs as equal.
Intensity of Rivalry:
Very High
GMs other divisions cannibalize their own sales as well as all others. Each company will do what it takes to real in customers
Threat of New Entrants:
Low
Car manufacturing takes extremely large amount of capital to enter. To compete at GMs level is next to impossible.
Threat of Substitutes:
Very High
GMs market share is continually dropping. Most other car makers offer higher quality and other benefits. Many substitutes available in the market
Bargaining Power of Customers:
High
Millions of car buyers per year and over twenty companies to choose from.
PORTER 5 FORCES
SPACE MATRIX
TOWS MATRIX
Suggested strategies
Developed and produced multi product line for different income class.
Design less fuel consuming engines.
developing new brands with unique features.
Recommendation
Invest in other products line .
Make hybrid car.
?
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