General Motors (GM) SWOT Analysis

General Motors (GM) SWOT Analysis

Strengths

Opel Brand and Business In Europe Opel is a leading manufacturer of cars in Europe. GM's future small car technology lies mostly in...
Geographically Diverse Business Geographically diverse business and revenue should help shield the business from shocks in any one...
Has an Investment Portfolio GM invest in market securities and bond portfolio to lower risk the firm faces.
Big Presence Outside U.S Has more sales outside the U.S.

Weaknesses

Brand Dilution Brand dilution from over extension into inferior products. Could hurt profit margins and image,...
Dependance on Promotions to Drive Comps When a company relies on sales to drive up their revenue, they customers become accustomed to...
Complex Supply Chain When a company gets many different components from numerous manufacturers, they may have a difficult...
Bad Management Management mistakes can lead to lost of market share, revenue, and profits if the biggest doesn't...
Sports Utility Vehicles Sports utility vehicles (SUVs) and trucks are suffering from several problems during the high gas...
Pension Expenses Pension expenses hurt the profitability of the business and lower the amount of money available to...
Global Overcapacity for Vehicle Production Plant overcapacity increases supply when demand is the same, thus, prices are lowered. Lower prices...
Business Restructuring Business is undergoing a major restructuring and switch in revenue sources, which may harm the...

Opportunities

Government Loans Government loans are usually more favorable than typical loans any company can get in the open...
Most Affordable Electric Car With alternative energy in demand, GM could benefit for having the most affordable electric car on...
Movies Glamorize Cars Movies Glamorize cars.
Divest Non-core Assets / Businesses When companies refocus on their core assets, it allows them to pay attention and innovation in the...
Cash for Clunkers The US government is giving away a larger rebate check if people turn in their old cars and upgrade...
Emerging Markets Demand from emerging markets is helping growth and margins. Emerging markets create new...
Average Car Age Even with better quality parts and repairs, older cars eventually need to be replaced. The average...

Threats

Cyclical Nature of the Auto Business Automotive purchases are cyclical, meaning their demand increases and decreases significantly over...
Tiger Woods Threatens Buick's Brand Tiger Woods affair hurts Buicks image.
Car Sharing Services What started in Europe is now coming to the United States. Car sharing clubs pay annual fees to rent...
Generation Y Car Buying Generation Y is driving less and purchase few cars than previous generations. They see car purchases...
Chinese Policy China is considering passing a bill that requires foreign auto makers who want to sell hybrid and...
Fuel Economy Regulation US and EU governments are planning to regulate fuel economy standards, which would put additional...
Intellectual Property Issues Intellectual property issues may hurt companies which rely on technology to differentiate themselves...
Unions Potential union development may hurt margins by increasing the cost of employees. This increase is...
Fuel Prices Food prices are affected by fuel prices, which all work to increase cost. Higher fuel prices are...
Intense Competition Intense industry competition may hurt growth and profitability. Increase competition should increase...

General Motors (GM) SWOT Analysis Profile

General Motors Corporation is a global manufacturer, marketer, and distributor of cars, trucks, and parts. The company also engages in the provision of loans and other financial services, including consumer vehicle financing, dealership financing, residential mortgage services, personal and commercial insurance coverage, and more. (read full profile)

Additional Information

What is a SWOT Analysis? It is a way of evaluating the strengths, weaknesses, opportunities, and threats that affect something. See WikiWealth's SWOT tutorial for help. Remember, vote up the most important comments. Check out WikiWealth's entire database of free SWOT reports or use our SWOT analysis generator to create your own SWOT template.

SWOT Conclusion

Strengths + Opportunities = 12

Threats + Weaknesses = 20

… The ability to capitalize on opportunities get rewarded with higher profits and lower costs. Maintaining strengths can help maintain high profits and low costs.

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