General Motors SWOT Analysis
Strengths
 Large Market Share
General Motors, as one of the largest and oldest automakers in the world, has
accumulated a vast market share over the years.
 Global and Domestic Experience
GM is able to draw on past experiences with changing market demands and
both internal and external factors as it has been through numerous similar
circumstances before at various times during its existence.
 Variety of Brands
The variety of brands GM operates gives the company a wide array of options
in dealing with its current position. GM can choose to focus on certain core
brands and build outwards from them, or experiment under different brand
names with new varieties of vehicles and marketing in order to formulate a
path that will best suit its goals. It can partake in such experimentation
without the fear of marring the name of its other brands, as they are not all
closely associated with one another by the average consumer.
Weaknesses
 Currently behind competitors on Alternative Fuel movement
While numerous companies such as Honda and Toyota have long since
implemented gasoline-electric hybrid vehicles into their lineups, GM is only
now starting to do so. As such, they missed the initial adoption of such
vehicles, and now must fight to take market share away from established
competitors.
 Vertically Organized Corporate Structure
A well-documented weakness of General Motors is the company’s rigid
vertical hierarchy, in which important decisions are made generally only at
the top and filtered down through the company. Many such decisions have
obviously not been beneficial for the company, and have placed it now in
circumstances that perhaps could have been avoided to some degree had a
more open, flat structure been in place.
 Consumers losing confidence
After seeing the company flailing in the face of the recession and readily
accepting a government bailout, many consumers have lost faith in the
company. This becomes an issue when looking towards future relations with
the car company in terms of warranties and servicing. Consumers are likely
inclined to go with a company that will almost certainly still exist in 10 years.
 Tied to the U.S. Market
As demonstrated by the effects of the recession, General Motors is clearly
tied to the U.S. economy. If it slows, so to do GM’s sales.
Opportunities
 Alternative Fuel movement
While GM may have lagged in adopting the hybrid car movement, they still
have numerous opportunities in further alternative fuel markets, which they
are now attempting to take advantage of, such as hydrogen and electric
powered automobiles.
 Expansion into the Global Market
As foreign markets become more and more developed, the market for
automobiles is ever-expanding. GM has had success already in the Chinese
market, and must continue to do so there while also looking for other
growing markets.
 Numerous Brand Names
Again, the variety of brands under GM leave it numerous opportunities to
target niche markets without harming the core of the company.
 “Clean Slate”
One positive effect of the recession for GM is that it has given the company an
excuse to essentially “start over”, something they are clearly attempting to do
as indicated by their new slogan, “Reinvent”.
Threats
 Rising Fuel Prices
Rising fuel prices are a threat to any traditional automaker, and make the
creation of alternatively fueled vehicles ever more important.
 Fast Growing Competitors
Asian competitors such as Hyundai with an emphasis on economy and fuel
efficiency of vehicles are growing at a rapid pace. This poses a large threat for
GM, who must attempt to retain market share and grow as well.
 Rise of Supply Costs
GM’s costs are tied to the industry prices for materials such as steel. GM must
establish a solid, reliable supply chain or look into cheaper materials should
the price of such materials increase for any reason.