General Motors SWOT Analysis

oecumenical Motors Corporation (GM) is primarily engaged in the production of vehicles. It designs, manufactures and markets car, trucks, and other automobile parts all told everywhere the world. GM has a good brand portfolio gives it significant competitive advantage. However, sustained decline in percipient vehicle sales as a result of increasing durability of vehicles and weak economic conditional pressure on the overall performance of the company.StrengthsGlobal presence, GM was the leading auto checkr in terms of sales for 77 years until 2007. The business has grown its presence in the world and is promptly operating in 157 countries, while its Chevrolet brand reached world participate sales (4.95 million units). New visual modality and strategy, later 2008 bailout, GM has experienced major changes and reorganized the way it does business. New members were appointed to the firms management team with Daniel Akerson as the CEO.He shook GMs bureaucratic organizational c ulture and introduced saucy strategy and visions to the business. GM became smaller but leaner and is becoming more. Strong brand portfolio, GM shortly sells 18 automobile brand to satisfy as many customer needs as possible. The roughlypopular brand are Cadillac, Buick GMC, and Chevrolet that sells very well in USA and China. Chevrolet reached global sales record and sold 4.95 million units in 2012. Strong presence in China, China is the largest automotive market and is an emergent economy that grows steadily. It is also the second largest market for GM in terms of vehicle units sold.An early grab into China, well performing partnerships and local Buick brand are the main reasons why GM has a strong position in Chinas automotive market. Knowledge of home market, GM is the largest car manufacturer in US and currently holds more than 18% market share. This is mainly due to extensive fellowship of US market and its consumer. 4 well performing brands, GMs has one of the highest cos t structures compared to all automobiles manufacturers. GMs Cadillac, GMC, Chevrolet, and Buick are among the best-selling brands in US and China and brings in more than 80% of all General Motors sales.WeaknessHigh cost structures, GM has one of the highest cost structures compared to all automobiles manufacturers. GM be are driven by its generous employee compensation and pension plans. Although GM has reduced its cost after 2008 it still has a lot to do to become cost competitive. Brand dilution, GM controls 18 automobile brands that vary in quality and are sold in separate markets. With so many brands in sales, customers find it hard to identify which brand belongs to GM family, as only one of 18 brands run for GM letters.The result is lower GM brand awareness. Bureaucratic culture, before reorganization in 2008, GM was infamous for its rigid culture and structure. Since them, the company has made some cultural and structural changes but should push improving as it isnt as qui ck as it competitors in reaching to constantly ever-changing environment. Car recall, last year, General Motors recalled 119,000 pickups due to missing hood latch. The same year it had to recall it Chevrolet pentad and fix battery problems. Recalls are expensive and damages brand reputation, especially when the company announces them so often.Opportunities incontrovertible attitude toward green vehicle, today consumers are more aware of the negative effects (air pollution) caused by cars furnish by petrol and diesel. Large quantities of CO2 emission intensity greenhouse effect, and negatively impact the disembodied spirit on earth, and thus, consumers are more likely to buy new loanblend and electrical cars that emit slight co2. Increasing fuel price, increasing fuel prices open up large markets for GMs hybrid and electric cars as consumers shift toward cheaper fuel types. Changing customer needs, by introducing new cars models, General Motors would be able to meet changing cus tomer needs for smaller and more fuel-efficient cars. Growth through acquisitions, GM has successfully acquired many car companies in the past and should continue doing so to gain new skills assets and rise to power to new market.ThreatsFluctuating fuel prices, due to increasing extraction of shale gas, future fuel prices should drop and make electric and hybrid cars less spellbinding. GM would treat the project of hybrid and electric cars as losses, instead than perspective future cars. On the other hand, steeping fuel prices would make current GM models less attractive to cost conscious consumer lower amounts of fuel. New emission standards, a new wave for stricter regulation on vehicle emission standards may negatively affect GMs finances. The corporate would have to assign large amount of money to comply with these new standards.Rising raw material prices, rising prices for raw metals allow for lift the cost for auto manufactures and result in squeezed profits for the compa nies. Intense disputation, for 77 years from 1931 to 2007, GM led global sales of vehicles, but lost its position in 2008 due to increased competition of cheaper and better quality cars, especially from Japan and South Korea. Exchange rates, China are GMs second largest market and the business earns huge profits there. Exchange rate fluctuations threaten GMs profits if the dollar would appreciate against Chinese renminbi.