General Motors SWOT Analysis
This General Motors SWOT analysis 2022 by EdrawMax underlines the company's strengths and weaknesses and suggests probable external opportunities and threats.
1. Lead-in
General Motors is a leading name in the automotive market, and its innovative features have helped them garner a massive loyal customer base. The US-based company has already captured 11.2% of the market share of the global automotive field.
The company presently operates in more than 140 countries, and they have the potential to grow in the future. General Motors SWOT Analysis can give ideas about their strengths, weaknesses, opportunities, and threats. In this article, to understand the importance of SWOT analysis, we will help you create a SWOT analysis using the free templates and components by EdrawMax Online.
2. About General Motors
2.1 Introduction of General Motors
General Motors is the second largest vehicle manufacturer. They are headquartered in Michigan and are well known for manufacturing SUVs, Pickup trucks, cars, and automobile parts. The company's business is mainly segmented into General Motors North America and General Motors International. As the world's largest automotive manufacturer, it held 50% of the market share from 1931 to 2007. They earned the 25th rank on the Fortune 500 rankings of the biggest US corporations in terms of revenue (2022).
The pandemic and lockdown have affected the global automotive industry, and the companies are reviving gradually. Global Motors is also working on its expansion; presently, they have around 4697 North American dealerships, and for the international market, the number is 7661. The General Motors SWOT Analysis can determine the opportunities that can help their growth and the threats that can act as hindrances.
2.2 Overview of General Motors
| Name | General Motors Company |
| Founded | 16 September 1908 |
| Industries served: | Automotive, Finance |
| Geographical areas served: | Worldwide |
| Headquarters: | Detroit, Michigan, United States |
| Current CEO: | Detroit, Michigan, United States |
| Revenue (US$): | 127 billion (in 2021) |
| Profit (US$): | 10 billion (in 2021) |
| Employees: | 10 billion (in 2021) |
| Main competitors: | Bayerische Motoren Werke AG, Daimler AG, Honda Motor Company, Toyota Motor Corporation |
2.3 History of General Motors
| 1908 | Bayerische Motoren Werke AG, Daimler AG, Honda Motor Company, Toyota Motor Corporation. |
| 1918 | Chevrolet Auto company joined the brand. |
| 1920 | The company was reorganized into Cadillac, Oldsmobile, Chevrolet, Buick, and Pontiac. |
| 1920-1930 | Company expanded its overseas business and became the world's largest automobile conglomerate. |
| 1980 | General Motors expanded into data companies and Hughes Aircraft. |
| 2000 | High Demand for SUVs. But the company went to the brink of bankruptcy. |
| 2009 | General Motors filed for bankruptcy with a debt of $100 billion . |
| 2020 | Company revived with increased demand for SUVs and pickup trucks. |
| 2021 | Company revived with increased demand for SUVs and pickup trucks. |
| 2022 | GM announced it would introduce an electric version of its popular Chevy Equinox in the fall of 2023. |
3. SWOT Analysis of General Motors
Multiple external factors and internal conditions can impact the business of the company. General Motors SWOT Analysis can point out the strengths and weaknesses of General Motors. An objective SWOT Analysis of General Motors can also hint at the opportunities and threats of the company. It will help the management to strategize their future steps appropriately and ensure further growth. Here is a detailed General Motors SWOT Analysis -
Strengths
- Strong Global Presence: When it comes to providing digital healthcare services, General Motors is considered one of the leading providers of such services. They give healthcare facilities like one-on-one consultations online with doctors according to the patient's requirement. Anybody can use the General Motors mobile app to get medicines and any other General Motors healthcare products and services anywhere at any time.
- Environmental policies:Brand name and portfolio for any business is one of the most important and reliable sources, especially for its customers. General Motors has successfully created a portfolio that ensures that they do not face any problems when they are on the verge of expanding the business with a new product.
- Innovation: The company has several suppliers that they rely upon, which help the company get raw materials without facing any supply-related problems.
- Diverse Portfolio: Mergers and acquisitions are always the best way to strengthen a business or a company, and General Motors follows the same path. They have had a lot of mergers and acquisitions that have helped them to get success and reach a position that is of great value.
Weaknesses
- Dependence on the US market: Though General Motors is a global brand and has successfully penetrated the markets like Canada, China, and the UK, the US-based company has a massive dependency on the US market for revenue generation. It can be a risk to the growth of the company. If the country's economy gets unstable for some reason, the business of the company will experience a direct impact. Other conditions like demands and brand reputation in the US market can also affect the company's sales.
- Brand-dilution: The company brings in new vehicles under the names of the other ten brands to fulfill the needs of its customers. But, this can cause the dilution of the core brand resulting in a decrease in brand recognition. Many competitors of General Motors, including Toyota, Honda, Hyundai, Volkswagen, and Land Rover, have better brand recognition than General Motors. The company does not conduct any sales under the name of its core brand, which is one of its main weaknesses.
- Generating revenue from specific products: General Motors is one of the largest automotive companies operating around the globe and manufactures a diverse range of vehicles, including big-size, small-size, and mid-size cars, SUVs, trucks, etcetera. However, a large portion of their revenue comes from SUVs and pickup trucks. They have high-profit margins in those vehicles, and since there is high demand for these items in the USA market, they account for a large portion of their revenue.
- Product Recalls: Product Recalls of a company generally cost a high amount. In 2020, the company had to recall more than 7 million pickup trucks and SUVs because Takata airbag inflator replacement for safety reasons was necessary. It was essential for ensuring the security of the customers. Moreover, this can negatively impact the brand image of the company.
Opportunities
- Exploring the market: The automotive market is highly competitive. Therefore, companies must concentrate on exploring emerging markets to ensure their growth. To decrease the over-dependency on the US market for revenue, General Motors must target markets like Brazil, Mexico, and more, with ample chances of expansion. Though they exited the Indian market in 2017, they can strategize properly and reattempt to penetrate the Indian market.
- Advertisements and Campaigns: Marketing using social media and traditional modes like TV and print ads can be immensely beneficial in strengthening their brand image. As they do not sell any of the vehicles under the name of their core company, they can construct strategies to work on their brand reputation, which will help them reach maximum potential customers.
- Increase in Demand for SUVs: General Motors maintains a high-profit margin on their trucks and SUVs. The low fuel prices are increasing the demand for SUVs and trucks. Hence, there are chances that their revenue will grow.
- Use of advanced technologies: They can invest more in research to improve the safety of their vehicles. To avoid the expenses caused by market recalls, they can do thorough testing before bringing a vehicle to the market. They can work on their autonomous cars, digital systems for customer support, and other innovative features which can give them an upper hand in the competitive market.
Threats
- Semiconductor crisis: General Motors depends on its SUV and truck sales to earn revenue. There was a semiconductor crisis in 2021, which affected the production of SUVs and trucks. It eventually reflected in their overall revenue.
- Increase in manufacturing cost: The recent price surge concerning raw materials and labor has decreased the brand's profit margin. It has led them to limit their investment in research and production of new vehicles.
- Intense Competition: Automotive field is very competitive, and new players are coming in now and then. At the same time, brands like Kia, Hyundai, and Toyota focus on expanding their business. Thus, creating a threat for General Motors as they aim toward business expansion.
- The decline of the US Automotive market: General Motors may face the impact of slowing down the US Automotive market. The revenue of General Motors is massively dependent on the US market, but due to oversaturation, the demand for new vehicles in the US is declining. It can impact the overall revenue of General Motors.
General Motors SWOT Analysis Diagram
As you saw here, SWOT analysis is an integral part of any organization's progress as it not only depicts the strengths and weaknesses in detail but also introduces the opportunities and threats it faces. In order to retain the information for a long time, students and professionals are advised to work on a General Motors SWOT analysis diagram using the astounding customization options offered by EdrawMax.
4. Free SWOT Analysis Diagram Creator
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5. Key Takeaways
The market dynamics of the automotive industry have changed significantly after the pandemic. Consumer preferences, demand, and supply chain are factors impacting conditions. After General Motors filed their bankruptcy in 2009, the pandemic conditions could be a blow to them as they were trying to revive. However, the company witnessed a surge in revenue and net profit by the end of the fiscal. Their innovative additions and success in the Chinese market can help them to expand their business. The company can focus on producing cars with autonomous driving modes and electric vehicles, which are present in high demand.
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Reference
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Jurevicius, O., 2022. General Motors SWOT analysis 2022 - SM Insight., [online]. Strategic Management Insight. Available at: https://strategicmanagementinsight.com/swot-analyses/general-motors-swot-analysis/ (Accessed 3 September 2022).
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Parker, B., 2022. General Motors SWOT Analysis., [online] Business Strategy Hub. Available at: https://bstrategyhub.com/general-motors-swot-analysis/ (Accessed 3 September 2022).
