General Motors Swot Analysis

In: Business and Management

Submitted By chagy84
Words 377
Pages 2
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...