Corporation Gm Swot Analysis Essay Example

alternative energy/hybrid trend in the automotive industry.

To achieve success, it is crucial for automobile companies to prioritize fuel efficiency and hybrid-friendliness. General Motors (GM) faces difficulties in communication among its employees due to a heavily vertically integrated organizational structure. The size of the company contributes to its struggles with profitability, causing a significant decline in Return on Equity (ROE), which displeases shareholders. GM's heavy reliance on the US market for sales necessitates global expansion and diversification instead of an overdependence on the domestic market.

Overreliance on GMAC Financing negatively affects competitiveness compared to other car companies.
Furthermore, GM's weaknesses create potential opportunities. Specifically, GM has lagged in the research and development of Hybrid vehicles. Nevertheless, given that hybrid technology is still in its early stages, this allows GM the chance to establish itself as a trailblazer in innovation and technology.

General Motors (GM) has observed growth in the Chinese automotive market, highlighting the need to focus more on foreign markets for profitability and expansion. To stay competitive, GM must continuously introduce new vehicle models and styles as they quickly become outdated. It is also crucial to enhance existing models. The presence of low interest rates can help drive sales and improve overall performance.

Threats: GM confronts challenges due to decreasing sales of trucks and SUVs as consumers prioritize fuel efficiency. Increasing fuel prices have prompted consumers to seek hybrid and more fuel-efficient alternatives.

Toyota has surpassed GM in the automotive industry by introducing hybrid technology, resulting in an increase in market share. In contrast, GM is facing challenges related to retiring employees and the burden of paying pensions from its smaller size. Moreover, GM is grappling with the financial impact

of escalating healthcare costs.

GM is reducing manufacturing and production costs while maintaining car quality due to the impact of increasing expenses in steel supply on automobile companies.