General Motors SWOT Analysis

One of the world’s largest automobile manufacturers and its root goes back to 1908. GM along with its strategic partners, manufacture trucks & cars in 31 countries, and the vehicles through these well known brands: Buick, Cadillac, Chevrolet, FAW, GMC, Daewoo, Holden, Jiefang, Opel, Vauxhall and Wuling. China is known to be the largest national market, followed by the U.S., Brazil, Germany, U.K., Canada, & Italy.


· Renowned brand name due to which the recognition level regarding the clients is high.

· It has global presence both regarding its brand image and manufacturing plants.

· It has its assembly lines and distribution network in more than 50 countries.

· They have a very strong brand portfolio.

· General Motors employs more than 200,000 people globally.

· They run their business in approximately 157 countries.

· Quality of the product serves as the center for the firm for achieving success.

· It has strong technological potential.

· General Motor’s initiative plan for VEBA (voluntary employees’ beneficiary association) which regarded specialized tax-free health care funds for the employees or the retirees.

· GM also invests in market securities and bond portfolios in order to minimize the overall risk the firm faces.


· They lack concentration on processes that will stabilize their market share if not increase it.

· The product lineup is quite dull, which is making it more difficult for the firm to complete the lead sales.

· Lack of understanding the use of technology to make higher profits with low debt.

· Vertical integration regarding the products is quite high.

· Lack of implementing the strategy to provide positive influence in the firm regarding the structure.

· Bureaucratic culture also counts as a short coming of GM.

· Constantly losing market share.

· Product design is not according to the preference of the customers that makes it hard for consumer acceptance.

· Profitability is decreasing (regarding the operational profits).

· Downsizing having negative influence on the firm due to the lack of containment of the core competencies.

· Lack of knowledge regarding lean production process.

· General Motors due to the lack of leadership has had experiences that have brought down the workers’ morale on the bottom line.

· The intense promotion of the automobiles that have no market attractiveness (low mileage SUV).


· The firm can use the knowledge that it gained from Toyota – Nummi joint venture and Saturn experience.

· It should build its image and gain more share in the market with it’s newly build confidence regarding the customers.

· New car models and designs should be introduced keeping in mind the customer preferences, because in the automobile industry, the needs of the customer are the valid puncture points that will provide profitability if concerned with delicately.

· Expansion of their business processes, but also keeping in mind the preferential influence of the customers.

· VEBA can help General Motors save up to $2.5 to $2.8 billion a year in cash if the process is implemented strictly.


· The industry although has matured considerably, but there is still room for more improvements, and due to which new entrants are entering the market even though the competition is already tough. (New entrants, not likely pose much of a threat, although Domestic and Foreign competition both act as active threats for the firm that has already gone through losing its market share.)

· Regulations and legislative authorities engaging the industry more actively.

· Consumer lawsuits are also present to be accounted for.

· Japan being a high manufacturing ground for automobiles, is being affected by the decline in its currency Yen.

· Current threat to the image of the GM is posed by the Senator Charles Grassley has accused GM for using bailout money to ‘bailout’ of the loans it had taken from the U.S. and Canadian Govt. (The money used were paid, not through GM’s profitability, but it was yet another loan acquired, so it is accused.)


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