Prepared by:

Murtaza Ahmad

MPA(4th semester)

Institute of Management Science Peshawar

(Pakistan)

General Motors Company is organized on September 16, 1908

Today, GM is recognized as the world’s largest automaker

Global automotive sales leader since 1931

Has manufacturing operations in 32 countries and its vehicles are sold in 200 countries .

•GM is large automobile manufacturer company. Unit of GE•Suffered due to large globe financial crises 2007 and economic turn down.•Has too many popular & leading brands (HUMER, SAAB, GMC, CHEVERLOVET) and Have 46 plants•Once GM common stocks were traded at Newyork stock exchange face value $93 per share, due to recession it fall $1 per share. Which face the company bankruptcy situation.

US Govt bill out worth of $16 billion and GM cope the crises.

US Govt took more than 62% shares of GM, while 7% shares purchase by Canadian Govt.

HUMMR, SAAB & GMC were liquated and the total of plant reduced to 36 from 46

GM financial statement(2008)

Revenue Operating income

Net income

Total assets

Total equity

$148.97 billion

$21.28 $-30.9 $91.047 $-86.154

Market shares (February 2009) vs Competitors

NISAN 8.1%CHRYSLER 9.8%HONDA 11.0%TOYOTA 14.1%GM 16.2%

WHO ARE THE GM COMPETITORS

SWOT ANALYSIS

STRENGTH Large market share Global experience Variety of brands On star satellite technology

WEAKNESSES

Behind on alternative energy movement

Poor Org structure Stagnant profitability Over dependency on US market Poor credit status

OPPORTINITIES

Alternative Energy Movement Continuing to Expand Globally. Low Interest Rates Develop New Vehicle Styles and

Models

THREATS

Rising Fuel Prices Growth of Competitors Rising Supply Costs, i.e. Steel

IFE MATRIX

EFE MATRIX

Cars Trucks

SUVs

Star Questio

n Mark

DogCash Cow

highlow

lowhigh Market Share

Gro

wth

rate

BCG MATRIXlo

w

CPM

Bargaining Power of Suppliers:

Moderate

GM has the largest market share in the US which could give it much power over suppliers but it has not used that and looks at suppliers and their needs as equal.

Intensity of Rivalry:

Very High

GMs other divisions cannibalize their own sales as well as all others. Each company will do what it takes to real in customers

Threat of New Entrants:

Low

Car manufacturing takes extremely large amount of capital to enter. To compete at GMs level is next to impossible.

Threat of Substitutes:

Very High

GMs market share is continually dropping. Most other car makers offer higher quality and other benefits. Many substitutes available in the market

Bargaining Power of Customers:

High

Millions of car buyers per year and over twenty companies to choose from.

PORTER 5 FORCES

SPACE MATRIX

TOWS MATRIX

Suggested strategies

Developed and produced multi product line for different income class.

Design less fuel consuming engines.

developing new brands with unique features.

Recommendation

Invest in other products line .

Make hybrid car.

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