General Motors Case Study 2013

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Recommended: Competition in the Global Automobile Industry

General Motors Company is one of the largest automobile makers in the world, with its headquarters based in the United States. After a few years of financial troubles, on November 18, 2010, General motors company (GM) announced the start of a new chapter in its history; a chapter that envisioned the emergence of a solid financial foundation within the company. The solid financial future according to then GM home page would enable the company to produce great vehicles for their customers and build a bright future for employees, partners and shareholders (“General Motors,” n.d.). In spite of the company’s optimism, some investors would prefer to evaluate the effect of the competitive forces on the GM’s good profitability prior to investing
Impressively, when the company is compared to other competitors in the market its performance is slightly above the industrial average, although quarterly revenue growth is slightly on the negative as depicted by the recent Yahoo finance report. Although GM faces fierce competitions within the industry, GM has risen to the challenge by introducing into its production line gas efficient cars, in addition to improved company’s image and customer service to name a few. Nonetheless, the company profit, and its share of the market is reduced by the durability of some of its competitors’ products (“General
The strategy used by consumers to extract extra profit from GM dealers is proficient because of the availability of substitute products and services within the auto industry. Interestingly, the individual buyer’s action during a transaction at a dealership affects that particular dealership, however, the consumer’s action is indirect a strong threat to the GM. This is because there are many individual bargaining consumers, and the profit might dwindle to a point where the dealers may not be able to sustain their businesses (Arif,

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