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Gm Swot Analysis

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Submitted By charlenetan
Words 828
Pages 4
Chong Tan (Charlene)
Management Policies and Practices
Marc Hamilton
24 October 2012
GM SWOT Analysis As one of the world’s largest automobile manufacturers, General Motors (GM) was found in 1910. Today, GM has become an essential organization in the US that has a significant impact on the overall economy. GM markets its products under these well-known automobile brands: Buick, Chevrolet, GMC, FAW, Daewoo, Cadillac, Holden, Jiefang, Vauxhall, Opel, and Wuling. Followed by the US, Brazil, UK, Canada, Italy, and Germany, now China has become the largest market for automobile industry. SWOT analysis stands for the analysis on strengths, weaknesses, opportunities, and threats.
Strengths:
The first strength GM has is its brand value and image. Since 1910, General Motors has established a stable market share along with Chevrolet, Cadillac, and Buick and become a household name. Moreover, GM brand is rooted not only in the US but also throughout the whole world. Second, General Motors has a large global presence as well. GM truly has a big worldwide presence that it has manufacturing, assembly, and warehouse operation in 55 countries. Third, high quality products and services have always been the center for the company for achieving success. Finally, GM has a significantly high market share that it runs the business in 157 countries.
Weaknesses:
First, GM has complied more than 1000 dealerships for closure. At the end of 2008, General Motors had 715 dealerships in Canada, but a year later, GM has called for nearly 200 closures. The organization has announced that it will not continue its contract with almost one quarter of its US dealership. Second, GM has an insufficient liquidity. In 2007, GM experienced a decrease on liquidity from $27.3 billion dollars to $14 billion dollars. The losses result from lower sales revenues and a reduction in its working capital.

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