StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

Competitive Analysis of General Motors - Case Study Example

Cite this document
Summary
This is a report based on the analysis of the automobile industry in the United States. The report is developed in such a way that the analysis of an organization in the automobile industry is done using different financial as well as economic tools. The organization selected here is General Motors…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER98.8% of users find it useful
Competitive Analysis of General Motors
Read Text Preview

Extract of sample "Competitive Analysis of General Motors"

Download file to see previous pages

The tools like PESTLE, porter's five force and SWOT analysis are used in this report in order get a better result. The report is designed in such a way that, first there is an introduction followed by PESTLE analysis, porter's five force analysis and SWOT analysisetc. Automobile industry was always a topic of discussion in the field of business and environment. The development of a country by avoiding the automobile industry is impractical or in other words it is ineffective. The main problem the industry is having is that the influence of micro and macro financial environment in the industry.

The recession or any other downtrend the economies badly affect the automobile industry, especially car industry. At the same time any boom or overall economic development of an economy creates a positive impact in the automobile industry by way of increased sale of motor vehicles. Different financial and economic tools help in studying the automobile industry in a better way. Tools like PESTLE analysis, SWOT analysisetc. are extensively used in the market study of automobile industry. Here, automobile industry in the United State is studied by focusing on the company General Motors.

General Motors held the top position among the car industry of the world for a long period. The great leadership of the company was one of the main success factors. But this was past and now the sales of the company are showing a diminishing trend. By looking at the present position of the company, nobody will believe that this was such a company, which was making a huge profit. Due to different reasons the company is now running into losses. One of the main reasons was the present financial crisis.

The crisis not only affected the business of General Motors, but also it affected the business of other automobile companies in /the United States and other parts of the world. As crisis reduced the purchasing power of the people, it caused a drastic reduction in the sale of automobiles. Majority of People will not go for luxurious items and car is considered as the luxurious item. The reduction in sale of the car caused to have a negative impact on the reputation of the company. The price per share of the company declined and the debt of the company increased.

Now the company is facing it difficult to run the business in a balanced way due to different factors, especially poor management. The poor management led to ineffective use of funds, increasing of debtetc. The company lost its position in markets where the company is considered as holding top position. Another reason for the failure was that the company's attitude. The company focused on marketing and financing activities instead of focusing on customer requirements. The company forgot the basic of the business activity that is consumers are the king in the market (Ramakrishna, 2006)GM which once controlled about half the US market is now struggling to maintain its leadership position.

This is not the case of GM alone. Even Ford Motors (Ford) and Chrysler, the other carmakers from Detroit, have been losing their market shares in recent times. In the late 1990s, the "big three" had a combined market share of more than 70%. Now, their combined market share in the US is 58% and it is declining continuously (Domestic trends, 2008, p. 3).GM

...Download file to see next pages Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Competitive Analysis of General Motors Case Study”, n.d.)
Competitive Analysis of General Motors Case Study. Retrieved from https://studentshare.org/miscellaneous/1526952-competitive-analysis-of-general-motors
(Competitive Analysis of General Motors Case Study)
Competitive Analysis of General Motors Case Study. https://studentshare.org/miscellaneous/1526952-competitive-analysis-of-general-motors.
“Competitive Analysis of General Motors Case Study”, n.d. https://studentshare.org/miscellaneous/1526952-competitive-analysis-of-general-motors.
  • Cited: 0 times

CHECK THESE SAMPLES OF Competitive Analysis of General Motors

The Student Motor Company

The Student Motor Company has been recognized to be facing a tough competition from general motors (GM) and Ford Motors.... The Student Motor Company has been recognized to be facing a tough competition from general motors (GM) and Ford Motors.... … Case analysis Q1.... In order to mitigate the competitive challenges The Student Motor Company invented a subcompact car i....
6 Pages (1500 words) Case Study

Business Strategy Analysis for Ford Motor Company

For decades, it remained to be the second largest automaker worldwide, only behind general motors (Freysennet, 1998).... This paper uses Porter's Five Forces and Value Chain to analyze the company's strategic mechanisms in attaining that global edge. Ford Motor Company sprouted in the American… t around 1903 when Henry Ford, an engineer who offered important chunks of his time experimenting with gasoline-powered vehicles, incorporated Ford Motor Company with eleven other investors....
8 Pages (2000 words) Essay

The Challenges and Opportunities Facing the Ford Motors Company

market, the company currently ranks second after general motors, which is the world's leading automaker.... The paper analyzes Ford motors through PESTEL analysis to identify its challenges and opportunities.... This research will begin with the statement that Ford motors is a U.... PESTEL analysis implies political, economic, social, technological, environmental analysis that helps in understanding the macro-environmental factors that affect the operation of Ford....
8 Pages (2000 words) Essay

External State of the General Motors

In the paper “External analysis of general motors” the author provides PESTEL analysis of general motors'.... External analysis of general motors External analysis of general motors General Motors has remained one of the most competitiveautomobile companies both in the United States and globally.... Below is comprehensive external analysis of general motors (PESTEL ANALYSIS) PESTEL analysis Demographic factors According to its mission statement, General Motors' strives to improve the organizational market share by expanding market margin to a vast community through responsiveness and production of quality and in sufficient quantity, which ensures consistency in supply to the population in demand of such products....
2 Pages (500 words) Essay

Ford Motor Company Analysis

general motors is the main competitor of Ford Motor Company in the U.... general motors is the biggest manufacturer of trucks and cars.... Well known brands for general motors are Chevrolet, Cadillac, Buick, Opel, Daewoo and Holden.... Ford is faced with serious competition internationally from Toyota, Nissan, general motors, Honda and Chrysler....
6 Pages (1500 words) Research Paper

Alfuttaim Motors Toyota

Its main principles… The following discussion is going to give a comparative market analysis of Alfuttaim Motors Toyota. It is widely recognized that the Alfuttaim motors is the leading distributor of This has made it to enhance the robust development of the automotive industry of the UAE as well as contributing to its significant growth widely.... Alfuttaim motors control a huge network of showrooms as well as service centers.... Alfuttaim motors have the greatest number of its vehicles on the road as compared to other automobile manufacturers in the world....
6 Pages (1500 words) Essay

Industry Type and Its Effects on Organisational Strategy

uch analysis will discuss if changes are due to businesses believing that the particular operational strategy they conduct their operations is the most effective means of achieving high profits and good levels of productivity as well as high volumes of sales.... The organizations that are better organized and have coherent strategies are the most likely to thrive instead of merely surviving within the increasingly competitive global economy (The Business, 27th November 2005)....
7 Pages (1750 words) Assignment

General Motors A journey from Prosperity to Bankruptcy

The other issue that possibly escaped the notice of top management of general motors is that unlike US where people use their cars even to pick up groceries from the shop at the corner, in Europe people use public transportation for commuting to and from work and use their personal vehicles only on special occasions.... A detailed study of the reasons that have pushed an automotive giant as general motors to the brink of bankruptcy.... hellip; general motors has been in business for one hundred and one years and has been an undisputed giant in international automobile industry with its products setting new benchmarks in fashions and trends in automobile industry....
8 Pages (2000 words) Case Study
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us