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General Motors Corporation (GM) is a
multinational automobile manufacturer
founded in 1908 and headquartered in the
As of 2008, General Motors employs about
266,000 people around the world.
It manufactures its cars and trucks in 35
different countries and sells them under the
brands of Buick, Cadillac, Chevrolet, GM
Daewoo, GMC, Holden, Hummer, Opel,
Pontiac, Saab, Saturn, Vauxhall, and Wuling.
As of 2008, General Motors is the ninth largest
publicly traded company in the world.
In recent years the company has endured
significant financial turmoil, including a 38
billion dollar loss in 2007.
GM needs a sense of urgency regarding revising
a strategic plan that incorporates the next
generation of vehicles.
In today’s global economy and highly
competitive auto industry GM has no time to
As stated, GM has just too much at risk in not
becoming an industry leader in alternative fuel
The DaimlerChrysler umbrella covers
many well known brands such as
Dodge, Chrysler, Mercedes Benz, and Jeep.
Ford Motor Company:
Ford has been focusing on cutting
costs to increase margins more than
its competitors. It has used reverse
engineering in the development of
their products. Thus Ford has been an
innovator in the auto industry.
Honda Motor Company:
Honda motor company is not your average
Japanese car manufacturer. Originally
know for motorcycles, Honda has managed
to elude the dominate keiretsu system in
Japan and become one of the dominant
automobile manufactures in the world.
Toyota Motor Corporation:
Toyota has three major brands underneath the
company umbrella; Toyota, Lexus, and Scion. By
having these three distinct brands, it lets the
company reach many sectors of the globe in a
choice of vehicle for customers.
1. Large Market Share
2. Global Experience
3. Variety of Brand Names
4. GMAC Customer Financing
5. OnStar Satellite Technology
1. Behind on Alternative Energy
2. Poor Organizational Structure
3. Stagnant Profitability
4. Overly Dependent on US
5. Overly Dependent on General
Motors Acceptance Corporation
6. Poor Credit Status
1. Alternative Energy
2. Continuing to Expand
3. Low Interest Rates
4. Develop New Vehicle
Styles and Models
1. Rising Fuel Prices
2. Growth of Competitors
3. Pension Payouts.
4. Increased Health Care
5. Rising Supply Costs, i.e.
The core competence of General Motors
is innovation. This is the driving force
behind its $190 above turnover.
General Motors has been utilizing
innovation in service ad technology to
secure itself a dominant position in the
automobile industry, since 1908.
In 1911, it conceptualized, engineered
and commercialized the self-starter
engine for the first time. Then in
1926, its product Cadillac was the
pioneer in devising a nationwide
In 1996 General Motors
introduced OnStar satellite
technology which allows
equipped vehicles to be tracked
in case of an emergency or theft
and allows the passengers to
communicate with OnStar
personnel. Other new car
concepts include minicars such
as Chevy Aveo.
Based on the GM’s consolidate net
sales and revenue, it shown that
General Motor Corporation
revenue has been falling to $
192.6 billion in 2007 from 193.5
billion in 2004. GM incurred a
consolidated net loss in 2007 of $
10.6 billion, compared to net
income of $ 2.8 billion in 2004.
In the last 1990s, GM had
regained market share up $ 80 a
share. In 2000, the interest went
up by the Federal Reserve to quell
the stock market and a severe
stock market decline following the
September 11, 2001 attacks.
Financial Results (cont.)
The current stock market price
of General Motors are falling
between $28- $29 per share. It
has been falling down
gradually in the past six years.
General Motors North America
market share in 2007 fell to
25.5% compared to 26.7 in
Below is a list of possible
strategies General Motors could
use to redirect profits and be
able to maintain survival for the
1. Market Development
2. Market Penetration
3. Product Development
Rivalry between existing competitors
Threat of entry by new competitors
Price pressure from substitute or
Bargaining Power of Buyers
Bargaining Power of Suppliers
The biggest thing for General Motors is to develop
a Hybrid vehicle that will maintain the pace of the
competition for the firm as well as one that will
stand out from the crowd to make the product new
and exciting. Creating a Hybrid SUV is a brilliant
idea and if GM can pull that off by the end of 2007
the future could look very bright for them. The
company has a huge background proving that they
can maintain being number one, it's just a matter
of product development being maintained and
refocusing products to the correct target markets.
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