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General Motors or GM was formerly known as General Motors Corporation. The company was a America based organisation. The company belonged to one of the largest motor-vehicle organisations for its manufacturing and other services performing during the 20th century as well as the entire 21st century. It performs as a greater manufacturing organisation and distributes throughout the entire United States. Researchers have also traced its operational facilities in the Canadian marketplace also. Major products of the company include automobiles, trucks and different automotive components. The company was led by William C. Durant and it was developed under his leadership during the year of 1908. Researchers have mentioned that during the year of 1929, the company overreach the success or position of Ford Motor Company. During this time, the company became the leading passenger-car producing company in America. It also performed in a greater manner within the overseas operations. In the year of 1925, the company obtained a remarkable position within the marketplace of England. Apart from England, the company also obtained a remarkable position in the marketplace of Germany and Australia during the year of 1929 and 1931 respectively. The following analysis will be helpful to understand the current position of the organisation and understand the prevalent strengths and weaknesses of the organisation.
The components of the SWOT matrix include – strengths, weaknesses, opportunities and threats. These components help to understand the internal aspects of the organisation which are responsible for success or failure. The following matrix will be helpful to understand the internal analysis of the organisation.
· The company contains joint ventures with different developed countries including Chinese automobile industries.
· The company dwells in a strong position within the United States automotive marketplace.
· The company also maintain the environmental sustainability.
· The company also provides safer and eco-friendly vehicles.
· The company is associated with a unique product recall.
· Excessive dependence on the United States marketplace.
· The company invests lesser in securing brand awareness.
· The company contains a heavy reliance on their SUVs and trucks.
· They can utilise the opportunity of lower fuel prices.
· The company can also utilise this opportunity to enhance the demands for SUVs and trucks.
· The consumer market is observed with enhanced demands related to the automotive products.
· The increased rate of competition.
· Increasing exchange rate in within the United States marketplace.
· Increasing restrictions in the implementation of government regulations and restrictions.
· The entire marketplace of United States is observed to be declining for the past few years.
As shown in the aforementioned matrix, the company is associated with a joint venture with different developed countries including China. Researchers have mentioned that during the year of 2015, the company almost sold 3.612 million transporting vehicles within the Chinese marketplace alone and grabbed almost 14.9% of the entire market share. The company contains almost 11 partnership only within China. The company employs almost 58,000 employees during one year. The company and its joint ventures are pushing for achieving a gradual success by the organisation. Apart from China, the company contains a strong position within the marketplace of United States. The company provides a tough competition to the companies including Chrysler and Ford. The company was associated with the notion of bankruptcy however, it managed to overcome the situation and rise back with complete pride.
Apart from its strong hold on the Chinese and United States market, the company is associated with different weaknesses. Rather, being reliable on the United States marketplace solely is itself a weakness for the organisation. Along with this, the company secures lesser investment for its brand awareness. The company also does not sell any of their services and product with their name. It is also helping to decline their market position. Researchers have mentioned that it is the main reason of positioning the company as the second largest automobile company. Third weakness of the organisation is the complete reliance on two main products including SUVs and pickup trucks. Both the products contain a higher profit margins comparing to other cars. These products are much popular within the marketplace of United States. However, the company need to diversify their product and service range to attract more consumers.
The company can utilise the opportunity of declining fuel price. Researchers have mentioned that the fuel price has decreased at its lowest comparing the past few decades. Hence, the situation can be utilised as an opportunity for the organisation to provide more services through their pickup trucks as well as the SUVs. This trend is also containing the likeliness to increase the market position of the organisation. Along with this, the company need to invest on developing new model releases. The time contains huge opportunities for the automobile industry to release new products and attract consumers from a huge range. The company also need to invest on the notion of technological innovation to upgrade their business models. In this regard, General Motors can maintain their market position within the existing countries and implement different market entry strategies to attract new geographical locations.
One of the greatest threat of the organisation is the increased competition within the market place. As the company does not sell its product with its own name, the other brand is utilising this as an opportunity to establish their brand. Secondly, the alteration in the exchange rate in the marketplace of United States is also altering their position in the foreign market. Third important threat for the organisation is the increased regulations and restrictions for different countries and their governments covering the entire world. Finally, the automotive market of the United States has been declining from the past few decades. Check out our other case study-related services 100% plagiarism-free at Allessaywriter.com.
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The components of PESTLE analysis include – political factor, economic factor, social factor, technological factor, legal factor and environmental factor. The factors also help to understand the external factors of the organisation. In the following section, the paper will reflect on the notion of PESTLE analysis in brief to understand potential opportunities and threats existing in the external environment.
Political factors including the government control over the industry and alternative industry. It also includes a huge tax policy and well as combustion kind of automobiles. The company also need to face the aspect of stability and non-stability of the government. For example, Chinese market is always associated with complete stability in comparison to other countries covering the entire world. On the other hand, the marketplace of India is observed with instability considering the political condition that always troubles any company to flourish easily.
Economic condition also includes the financial condition of the market. The economic factors include increased growth rate as well as developing nature of the marketplace. Along with this, the company is also associated with rising financial competition covering the entire world. The company is threatened by the altering position of the exchange rate within the entire market place.
Social factor can be analysed through three dimensions including – higher demands regarding the electronic vehicles, higher demands for the self-driving cars, and the higher demand considering the sharing vehicles or the programs known as ride-hailing and others. Being a manufacturing company, the organisation is lagging behind from implementing other services including share car, self-driving car and also the ride-hailing programs. The entire consumer world is focusing on getting the electronic vehicle to promote the notion of sustainability. Along with this, the entire consumer world is also focusing on getting the self-driving cars to avoid any car related mishaps.
Automobile industry is integrally associated with the aspect of technology. The company need to focus on investing on technology as it is already mentioned that the consumer world is preferring the self-driving cars more than the normal fuel led cars. Secondly, the automobile industry is becoming a fuel-efficient industry to support the environmental sustainability.
Legal factors include the altering restrictions and regulations of different governments to support safety and security. It also includes restrictions related to the emission related regulations. Finally, the legal factors also include different environmental regulations proposed by different governments. The automobile industry is associated different allegation related to pollution and others. Hence, governments are bound to propose certain restrictions and regulation to help the organisation to perform in a systematic manner. Along with this, researchers have pointed out that these restrictions are being successful to main the sustainability rate of the entire world.
Final component of the PESTLE case study analysis is environmental factor. With the procedure of advancement, people are neglecting the environmental aspects. The automobile industry belongs to one of the business to threaten the entire world by producing waste and pollution. Hence, the company need to acknowledge the importance of environmental sustainability. The places like Germany is associated with huge problems related to pollution and waste production. The increased demands of the automobile industry can be one of the reasons behind the enhanced issue of this country. However, the initiative of eco-friendly car and self-driving car will be helpful for the organisation to reduce this threat.
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