Factors affecting the automotive industry

  1. Political
  2. Government start to legalize and set the laws and regulation since the 1960s and it have affected this industry until now. It arise from the consumer rapidly concerns for the safer vehicle and worry about the environment. Almost the majority of the regulations come from consumers urges.

  3. Economic
  4. For every country's economy, the automotive industry has brought a great impact on it. According the number of studies (Dianne Feeley, 2009), is the major user of steel, iron, lead, plastics, vinyl, rubber, aluminum, textiles, and computer chips. The study also mentioned that for each autoworker there are seven other jobs created in other industries. These industries include anything from the aluminums to lead to vinyl.

  5. Sociocultural
  6. Nowadays, the socialist comments that consumers on the kind of car they drive. It is true however the society likely does not want to admit to this. Manufactures understand this happens usually and targets their markets by these thoughts. Anyone in which drive a nice car is thought to be wealthy. No one wants to be seen driving an horrible vehicle because of what other people will think of him or her. Consumers also just get a better feeling when they are driving a attractive or latest car, if makes them get better impression about themselves.

  7. Technology
  8. the internet has a great impact on every industry in the anywhere and has also affect the automobile industry. According to the J.D. Power and associates 2006 New Autoshopper.com Study, 59% of the buyers referred to the internet before making their purchases and out of that 59%, 85% of the serious buyers visit the manufactures website before going to the dealer for a test drive. Business-to-business marketplaces have given automotive industry many opportunities because of the advanced technology that more convenient and cheaper cost.

  9. Demographics
  10. Recent years, the main target market has already focused on the child of a so-called baby boomer, generation Y , for every product. As their generation is aging and spend less money. The automakers are searching a better one, the younger generations. Moreover, the target is starting to point toward the Generation Y who are between 1976 and the early 1900s. according to analysts (AutoPacific 2009),

  11. Global
  12. General Motors, Ford Motor company, Daimler Chrysler, BMW, Volkswagen, Volvo, Toyota, Mazda, and Nissan Motor Company come together to create a new trade association created the Alliance of Automobile Manufactures. The organization was to replace the American Auotmoblile Manufactures Association that only consisted of American manufactures, the goals of the association were to work together on public policy matters of common interst to provide reliable industry information and data, and seek consistent global regulatory extent.

Competitor's Analysis

The main competitors of General Motors are domestic companies such as DamilerChrysler and Ford Motor and Japanese companies such as Toyota Motor and Honda Motor.

DamilerChrysler

As the second ranking auto company in total revenues it has positioned itself as an industry leader because of its various strengths. The DaimlerChrysler network covers a number of famous brands such as Dodge, Chrysler, Mercedes Benz, and Jeep. This means DaimierChrysler has unbreakable brands that are recognizable in the world.

Honda Motor Company

Honda motor company is not a well-known Japanese car manufacturer. Actually u know it from their motorcycles, Honda has planed to elude the dominate keiretsu system in Japn and become one of the dominant automobile manufactures in the world. There are a huge number strengths to Honda. Honda has a reputation for producing high quality products fro cars to motorcycles. Honda has won many awards for initial quality and customer satisfaction. Their automobiles are reliable and fuel efficient. Their research has afforded them competitiveness in innovative products.

Toyota Motor Corporation

The Toyota Motor Corporation was incorporated in 1937 and has lots of strengths being one of the undustry leader in the automotive industry. Toyota has three major brands underneath the company network; Toyota, Lexus, and Scion. By having these three distinct brands, it lets the company achieve different zones of society in a choice of vehicle for customers. It has traditionally been the leader in Total Quality Management. By using the Kaizen theory of continous improvement, Japan caught up the U.S. automakers during 1980s.

SWOT Analysis

Strengths

  1. Large Market Share
  2. Although GM's market share in the US has declined, it is still astonishing competitive at 26 percent. They also enter the Chinese market and gain an increasing share. With the right decision there is no doubt for GM to not become the automotive leader again.

  3. Global Experience
  4. As mentioned above GM's recent form is declined, they still have the market share and learn from the experience. They have already been a global company for almost 100 years now and have established themselves as the global leader for most of them. As I have mention above that the current opportunity for GM is to expand market globally and we can see that they have already have this experience before. It is just a matter of time to prove that they have the correct planning and proper implementation of those plans that will decided whether or not GM's goals are achieved.

  5. Variety of Brand Names
  6. GM has been the automotive leader for the majority of the last century. A large reason for that is the wide range variety of quality brand names that appeal to all target markets. The current GM brands included: Chevrolet, GMC, Cadillac, Buick, Pontiac, Saturn, Saab, Daewoo, Opel, and Holden.

  7. GMAC Customer Financing Program
  8. Since its establishment in 1919 it has proven to be GM's most reliable way of revenue.

  9. OnStar Satellite Technology
  10. Developed in 1996 Onstar currently has over 3 million subscribers and is standard on all GM vehicles. This technology allows the vehicles to be tracked in the event of an emergency or theft, it also allows the driver or passengers the ability to communicate with OnStar personnel at the click of a button.

Weaknesses

  1. Behind on Alternative Energy Movement
  2. This is GM's largest weakness. The alternative hybrid trend has begun to take place in the automotive industry and GM has been one step behind the competition in therms of alternative energy vehicles. This has led to many problems including loss of market share and a decline in company profit. In order for any automotive company to be successful from this point forward they must be Hybrid friendly and fuel efficient.

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