GM Case Analysis

Essay by EssaySwap ContributorUniversity, Master's February 2008

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GM Case Analysis: Still in search of essentials needed to boost GM's profitability, their status still continues to lag among their competitors. In the auto market industry, GM's primary competitors are Chrysler and Ford. In this industry, the product and financing are top priority. New entrants do not seem to pose a threat. GM's product line consists of mostly sports utility cars and pick up trucks. GM's industry position is becoming a lot smoother than the past. Their operating profits more than doubled from previous year and is on an upward rise. Also revenues continued to rise. A reason for GM's success was their president, G. Wagoner Jr. who cut costs and redesigned the built of their cars. Wagoner integrated the platforms of his Michigan engineers with GM's global counterparts. One weakness of GM is their weak profit margins and their huge warranty costs. Another weakness is GM's personnel problems with the United Auto Workers (UAW).

Their dealerships are located in poor areas and in need of renovation. In their overseas region, GM is still trying to regain its stability. Their marketing and branding strategy does not seem to be successful in recruiting consumers. With their goal to become profitable, GM has been continuing to renovate its product lineup. Wagoner assigned the duties once upheld by multiple chief engineers and marketers to one single executive. Wagoner also retired three of their models that didn't perform well.

I recommend that GM continue their current strategies. They should continue to drop their unprofitable models and reducing their number of platforms. They should find a common ground to improve their relationship with their labor workers. Also they should find new innovations in their models to live up to the ideals of what consumers are looking for. Maybe increase their research and development to...