General Motors Corporation
General Motors Corporation normally known as GM was established in 1908. It is the world biggest and a leading multinational auto mobile manufacturing corporation. GM Corporation has the biggest number of employees in the world. The corporation has different brands of vehicles in the market that include Chevrolet, Daewoo, Hummer, Wuling and others. It is the ninth publicly traded corporation in the world. (Laura, 2008) Mission and vision GM is one of the respected auto companies in the world. It has a variety of products that ensure that the company is fairing well in the market.
The company’s head quarters is located in New York, United States and looks forward to establishing an outlet in every country of the world. Product analyses The planning strategy is looking on how the GM products are fairing in the world auto market. The existence of the company in the market is based on an extensive research that was carried out in the European market which shows that there is still large untapped market potential in the auto industry in Europe and other parts of the world.
The GM Company specializes in Designing and making of automobiles, trucks, locomotives, and related parts such as chassis, interiors, drivetrains, and electronics. (Brandi, 2007) SITUATION ANALYSIS GM SWOT Analysis General Motors is the market leader in the world auto makers’ market. In Europe and America, it has the largest share of the market with more than 30 percent of the market share. The following is the SWOT analysis for the company in the world market: • Strengths a) The GM Corporation has an already large established business in the auto market.
Since 1930, the corporation has established itself as a world leader in the auto market. It has operated in United States since 1908. In line with its vision, the corporation has been striving to be the world leader in the auto industry. Through innovation and strategic marketing, the GM has acquired about 30% of the world auto market. b) The GM has good market reputation. With strong brands in the market, the corporation is well positioned in the market. In the US market GM has strived to build a good market reputation. This has worked positively for its brands.
It is on this good reputation that the market can embark on introducing new brands in the market. c) The target market is also quite large. The auto market has been recording growth in the recent past and there are future prospects of growth. Therefore the target market is quickly expanding. • Weakness a) The target market is quiet large and there are fears the demand for the GM brands may outdo the capacity of the corporation to satisfy the demands of the market. It is still not clearly established the rate of growth of the GM’s brands in the market but there are expectation that the product will record a high growth rate.
This means that the restaurant will need to increase its production capacity in order to match the rate of growth of the market. b) The corporation has been able to establish a distribution network of its brands in the world that matches the demands of the market. In this case the GM Corporation has managed established a distribution network to the interior due to infrastructural development. c) Banking on the success of the other auto makers in the market may have negative effects on the introduction of the GM hybrid brands in the market since they will be targeting different markets.
• Opportunities a) The GM Corporation is marketing its products in a growing market. This is a unique opportunity for the corporation. A stagnant market becomes difficult to introduce new products because there are already other companies which are likely to bring in competition. b) The GM Corporation can introduce its products in the market in unique way. With the growing importance of classic motor shows, the corporation has of late been sponsoring motor rallies that are also used to market the company’s brands. This will help in introduce the brand in the market in unique way.
The corporation can also sponsor other events like sports or engage in corporate social responsibility activities like girl child education to help the target market identify with its product more. c) The corporation can use a wide range of marketing strategies which will lead to the overall growth of its product in the market. The US advertising market has been growing at a rapid rate which means there will be an array of opportunities for the growth of the market. There are many advertising strategies for the company in the US market. • Threats a) There are threats of entry of other brands in the market.
In this case there are threats of entry of new and existing companies in the market which will increase the level of competition in the market. There are other companies which are likely to introduce the same model in the market once there is success of the initial brand. b) There is a threat of change of the current external environment which is likely to alter the nature of the market. For example change in the taxing regime, government laws regulating the industry, and other factors which are likely to impact negatively on the industry. (General Motors, 2007)