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Paper Topic:

Industry Analysis for General Motors Corporation

p General motors (GM , although facing crisis but is still sustaining no 1 position in the industry . General Motors has some prestigious brands at its behalf including : Buick , GMC , Saab , Saturn , Pontiac , and Cadillac etc

The cars designed by GM have the differentiation qualities of attractiveness , comfort , road grip , technical and electronic devices and off-road excellence . The basic draw back in the GM cars was their high consumption of fuel . This can have drastic impact on the sales in today 's era when the fuel prices have gone at their higher rates

ever before in history

The strengths of General Motors include after sales service provision high quality customer services and strong customer retention techniques The weaknesses include its mediocre reputation for luxury and ability to build custom vehicles

GM has a corporate culture of innovation and strong co-operation among its different divisions . GM seems to lack the characteristic of knowledge sharing culture with in its different departments . On the other hand the organization being no . 1 has the guts to open new production plants , apply latest techniques in the manufacturing process The company also benefits from economies of scale as it produces a large number of vehicles every year

Industry 's dominant economic characteristics

Car manufacturing is considered as one of the most lucrative industry The industry consists of the companies that produce , cars , sport utility vehicles , minivans , trucks and motorcycles . Since 2002 the industry has been facing financial crisis . This can be proven by the fact that the excess cash reserves of Ford motors reduced to 1billion from 10 billion by the late 2003 . Mergers and acquisitions also took place as GM bought stakes in Suzuki and Fuji Heavy Industries , Ford acquired Volvo Car and Land Rover . Daimler Chrysler took a controlling stake in Mitsubishi motors . With the slow down of the industry the merger activities also declined . The auto manufacturers responded to the situation by cutting the expenses , which resulted in shape of layoffs and reduced production . Still being one of the most volatile and profitable industry of business world the output of the industry was calculated 64 .6 million vehicles in 2005 . With the changing economic and business conditions the market share of the three big industry leaders was transferred to Toyota , Honda , and Nissan , making the number of market leaders six from three . UK has remained one of the largest buyers of the European automobile manufacturers

The increasing number of skilled , qualified and professional work force in India at low wage rates made it an ideal outsourcing destination for automakers

India and other Asian countries are not only emerged as ideal outsourcing destination but they are profitable markets for the automakers all over the world

More than 2 million passenger cars were sold in China last year , an increase of more than 80 percent from the year before , according to the State Information Centre . China is now the single fastest-growing auto market in the world , and the second largest in Asia after Japan (Goodman , A01


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