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Rough Gm

In: Business and Management

Submitted By amonsen
Words 715
Pages 3
Current Issues: * Competing brands * GM’s bankruptcy * CEO turnover/New management * Ethical issues

Threats: * Intense competition * Trade Union * Cars Lasting longer * Recession of the Economy * Fuel prices could slow truck sales

Opportunities: * Average car age * Emerging markets * Cash for clunkers * Global warming * Globalization

General Motors is an American multinational automotive corporation founded on September 16, 1908 as General Motors Company. Employing over 200,000 people and doing business deals with over 150 different countries, GM is currently the world’s number two automaker. The company manufactures designs, and market cars, crossovers, trucks, and parts worldwide.

The first threat for GM is intense competition. Intense competition is an easy qualitative factor to overcome, so the investment will not have to spend much time trying to overcome the issue. This may hurt the growth and profitability of the company. An increase of competition should increase marketing and sales expenses. Globalization has led to foreign firms competing for business that is a threat to GM. This refers to the ability of a country or firm to provide goods and services, which provide better value than their overseas rivals. In GM’s case, this affects them on the nationally global segment, because an increase in competition form global competitors would lead to price wars between them and allow consumers to play off of different firms to get the best prices. GM would have to lower their prices, and competitors can enter into their current market and take some of GM’s market share. Since the existing markets are changing, in order to increase sales many car companies want to enter foreign markets. Another threat consists of Trade Unions. The potential union development may hurt margins by...

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