 Economic
Factors
• Business Cycle
• Consumption
• Employment
 Competitive
Factors
• entry and exit strategies
• competition
• market segments
 Geographical
Factors
• headquarters
• warehouse location
• foreign markets
Degree of Rivalry
•
Although there are several competitors within the industry, the
traditional powerhouse automobile companies such as GM, Ford,
and Chrysler have controlled the market for the past century.
•
There is somewhat of a threat within the industry when
considering foreign carmakers such as Toyota, Honda, VW, and
Hyundai.
Threat of Substitutes


As of now, there is not much of a threat, considering the
compatibility and convenience of the automobile. Also, there
has not been much talk of any type of alternative.
If there were to be a threat to the automobile industry, it would
come from one of the following units: Bus, train, watercraft, or
airplane. These are the only reasonable threats to the industry.
Barriers to Entry

In order to start an automobile company, a very large amount of
capital is needed. Also, considering the age of the industry, the
difficulty is only that much higher. Therefore, the barrier of entry is
considered “very large”, and almost impossible.
Buyer Power


With low switching costs, and the ability to buy in large
quantities, the buyer power of companies within the industry is
considered “very high”
Also, once one unit is produced, the cost of production
takes a considerable decrease because the cost of the initial
creation of the product is much higher than the units that
follow. This also plays favor for the buyer because with the
standardization of cars the cost for buyers is considered
reasonably low.
Supplier Power

Because of the minimal number of automobile retailers, the supplier
power is considered “low”. This results in suppliers being unable to
dictate prices and conditions.
•
•
•
•
Quality/Product Performance (weight .3, GMC – 8)
Technology (weight - .15 GMC – 8)
Cost (weight - .25 GMC – 8)
GMC Overall Strength Rating 7.95 out of
10
 Assesments
•
•
•
•
of sucsess bsased off specific
performance indicators
Market Share
Sales Growth
Net Profit Margin
Return On Equity
 Managerial
Factors
• Corporate Social Responsibility
• Strategic Analysis
• Ability to Meet Changing Technology
• Meeting the Competition
 Competitive
Factors
• Product Strengths
• Market Share
• Low Costs
• Customer Concentration
•
•
•
GM has moved to a more flatter
Organizational structure
This aids in having executives be more
accountable for their portfolio
Mark Reuss head of GM North America
“This structure has been developed with
as few layers as possible between me, the
dealer and the customer.







Founders Beliefs: William Durant
Key Executives Style
Cohesiveness and Collaboration
Consistent communication
Degree of Social interaction
Opportunity for growth
Degree of Innovation





Phase 1: Initiation establishment of the company by
William Durant in 1897.
Phase 2: Formalization – demand for the automobile
and the establishment of Buick as the flagship Brand
Phase 3a: Expansion – Acquiring of other brands to
form the Group GM
Phase 3b: Coordination- Reengineering of the product
and the Business model
Phase 4: Globalization: Dealing with new competition
and a whole new marketplace
 Four
Blue Oceans in GM history
• 1924
• Japanese Fuel efficient car
• Chrysler Minivan
• Electric Car
 Empirical
Creativity
 20 Mile March
 SMaC Recipe