General Motors Swot Analysis

General Motors Swot Analysis

CASE: General Motors
Situation:
General Motors is a well-recognized brand from USA that is struggling trough the past years. The company is currently in debt, also it received $13.4 billion in government loans, and it announced a loss of $30.9 billion. GM needs to create a good plan in order to keep working in the automobile industry and become a great competitor.
Strengths:
  * It has assembly, manufacturing, distribution, office and warehousing operations in 55 other countries
  * General Motors Brand is well rooted not only in America but also throughout the world.
  * GM shares still aggressive in China
  * GM experiences for nearly a century will help them come back in the competition
  * Variety of different brands help them to reach all target markets
Weaknesses:
  * They are behind on alternative energy movement
  * They are on debt with the government
  * Poor organizational structure since there is lack of communication between employees from the top to bottom
  * Profitability is decreasing
  * Downsizing thousands people
Opportunities:
  * They can use its competitors ideas to get back into the race
  * They still have loyal customers
  * Increasing demand for hybrid/electric vehicles
  * Opportunities in emerging markets
  * Changing consumer demand for new model types and styles
Threats:
  * Gas prices are increasing rapidly
  * Competition is developing new car styles and efficient
  * Rising raw materials prices
  * Environmental emission standards
  * The crisis affects the USA, Europe, and Asia

Findings:
  * Net income was as follows:
      * 2006 – (1,978,000), 2007 – (38,732,000), 2008 – (30,860,000)
  * GM cars styles were not updated with new technology-they stayed old fashioned
Recommendations:
In order to become a hard competitor, GM needs to start remodeling their cars. Also, they need to cut those brands that don’t sell as the other brands do. For example, the Hummer is a car that...

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