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General Motors (SWOT Analysis)

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“SWOT is an acronym for the internal Strengths and Weaknesses of a firm and the environmental Opportunities and Threats facing that firm. SWOT analysis is a widely used technique through which managers create a quick overview of a company’s strategic situation. The technique is based on the assumption that an effective strategy derives from a sound “fit” between a firm’s internal resources (strengths and weaknesses) and its external situation (opportunities and threats). A good fit maximizes a firm’s strengths and opportunities and minimizes its weaknesses and threats. Accurately applied, this simple assumption has powerful implications for the design of a successful strategy.”

General Motors 

General Motors Corporation (GM) is primarily engaged in the production of vehicles. It designs, manufactures and markets car, truck and other automobile parts all over the world. GM has strong brand portfolio. The company markets its products under Chevrolet, GMC, Hummer, Pontiac, Saab, Saturn, Corvette, Opel, and Vauxhall, Buick, Daewoo, Holden, and Wuling. The company’s strong brand portfolio gives it significant competitive advantage. However, sustained decline in light vehicle sales as a result of increasing durability of vehicles and weak economic conditions in the US would put additional pressure on the overall performance of the company.

Strengths, Weaknesses, Opportunities and Threats (SWOT)

Location of Factor

TYPE OF FACTOR

Favorable

Unfavorable

Internal

Strengths

  • Strong brand portfolio
  • Growing business in Asia Pacific and Latin American Region
  • Large scale operations

Weaknesses

  • Declining market share
  • Product recalls
  • Declining financial performance

External

Opportunities

  • Increasing demand for hybrid electric vehicles
  • Opportunities in emerging markets
  • New models

Threats

  • Declining demand for light vehicles in US
  • Rising raw material prices
  • ELV Directive
  • Stringent emission standards
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