GMC SWOT Analysis analyzes, General Motors Company (further GM) is a multinational automotive company based in Detroit, U.S. The company designs, manufactures and sells various vehicles, including cars, trucks, commercial vehicles, crossovers and automobile parts. It is the second-largest automobile manufacturer in the world. GM controls a strong brand portfolio and sells its vehicles under 10 different brands, such as: Chevrolet, Buck, GMC, Cadillac, Opel, Vauxhall, Holden, Baojun, Wuling and Jiefang. GM’s primary markets are China and the U.S.
Did you know? Did You Know That GM Was Involved in the Apollo Moon Program? They provided the navigation systems as well as the inertial guidance system for the entire program.
GMC company was founded on September 16, 1908, by William C. Durant. The headquarter of General Motors is in Detroit, MI. After it went bankrupt, it has been restructured to General Motors Company LLC (the New GM) from General Motors Corporation in the year 2009. The new company purchased the name and most of the old GM’s assets.
This can only be achieved through a firm with extensive knowledge, experience and innovative strategies. To determine the strengths of the company potential, weaknesses, opportunities and threats, it is necessary to conduct a SWOT analysis by GMC.
GMC At A Glance – GMC SWOT Analysis
Company: General Motors Company
Founders: William C. Durant
Year of establishment: September 16, 1908
CEO: Mary T. Barra
Headquarters: Detroit, Michigan, United States
Employees (Dec 2020): 1,73,000
Ticker Symbol: GM
Annual Revenue (Dec 2020): US$$144.2 Billion
Profit net income (Dec 2020): US$8.7 Billion
Products & Services: Automobiles | Commercial Vehicles | Financial Services | Automobile Repair
Company Website: www.gmc.com
GMC SWOT Analysis – SWOT Analysis Of GMC
SWOT Analysis Of GMC analyzes the brand based on its strengths weak points, weaknesses, opportunities, and threats. With GMC SWOT Analysis it is clear that the advantages and disadvantages are internal factors, while threats and opportunities are external elements. Here we are going to talk about GMC SWOT Analysis. Below Is The Detailed SWOT Analysis Of GMC.
GMC Strengths – GMC SWOT Analysis
1. Market Dominance: Being the market leader and largest manufacturer in the largest auto industry is a significant strength. GM is the largest US auto manufacturer and also holds the lead in terms of market share, at 16.9% in 2019.
2. Highly Innovative: From electric vehicles to the design and manufacture combustion engines, GM innovation can be attributed to its large investments in R&D.
3. Strong Strategic Partnerships: GM recognizes that no one person can do it all and seeks out strong strategic partners to help them. Strong partners have been key to GM’s success, from SAICGM to GM–CATL and many other areas.
4. Safest Cars: Customers consider safety to be the most important factor in their purchasing decision. GM’s brands have the highest safety ratings and are the only automaker to be awarded a five-star safety rating.
5. Global Presence: GM is present on 6 continents under GM North America and GM China and GM International which caters to Europe and the Middle East, Africa and Latin America.
6. Unique Portfolio of Brands: GM boasts some of the most distinctive brands in its portfolio. These unique brands set GM apart from its competitors, including Chevrolet, Buick, Cadillac and Opel.
7. Great Sales Strategy: Higher sales equals higher revenues and profits. GM is ranked 12th US and 41st worldwide in terms sales.
GMC Weaknesses – GMC SWOT Analysis
1. Reliance upon SUVs and Pickup Trucks. General Motors heavily relies on SUVs, pickup trucks and pick-up trucks. In 2019, GM saw a decrease in car sales of 2.9%, with 2% of that decline being due to a drop in SUV and pickup truck demand.
2. Negative publicity: It was revealed in 2015 that GM cheated the emission levels by its trucks almost for five years, from 2011 to 2015. This eroded trust.
3. Too dependent on the U.S. Market: GM is a global company, but it relies heavily upon the US market more than any other carmaker. A large proportion of GM’s revenue comes from the US market , so a decrease in US sales could be devastating to the bottom line.
4. Safety Issues: Safety is the most important rule in automobile manufacturing. Even the smallest defects or quality problems can cause death. It was revealed that GM had defective ignition switches in millions of its vehicles , resulting in 124 deaths and 275 injuries .
5. Insufficient Diversification: GM focuses primarily on the design and manufacturing of automobiles. GM’s investment in one sector will make it more vulnerable than other automakers that have diversified portfolios.
GMC Opportunities – GMC SWOT Analysis
1. We are focusing on eco-friendly options: Globally, the number of environmentally-conscious customers is growing along with demand for eco-friendly vehicles. GM is leading efforts to develop long-lasting electric cars and is perfectly positioned for the future.
2. Increase Presence in Emerging Markets: GM is not present in Asia and Africa, but it does have a small market share. These emerging markets offer greater growth potential.
3. Explore Autonomous Market: The future of self-driving cars looks bright. GM’s self driving cruise offers a unique opportunity for the company to capitalize on this market for growth.
4. Diversify Portfolio: From flexible mobility such as car sharing to the growing demand for electric bikes there are many related sectors that GM could engage in to diversify his portfolio
GMC Threats – GMC SWOT Analysis
1. Global Recession: Many countries are sliding further into recession. GM’s China sales dropped by 43.3% in the first quarter 2020 compared to the previous year. This is a glimpse at what’s to come.
2. Trade Tensions: With trade tensions between the US and China still not resolved, GM could become a victim to tit-for–tat tariffs. This is a serious threat to GM as it has many auto plants in China , and relies on the US market.
3. Labor Issues: In 2019, 34 plants were shut down by a strike of 48,000 workers. This cost GM more than $2 billion . Profits and sustainability will be enhanced if strikes do not reoccur in the future.
4. Civil Lawsuits: Fines, penalties and settlements in civil suits can overwhelm any auto manufacturer, regardless of its size. GM continues to fight allegations that it sold trucks that were not compliant with the diesel usage laws of the US.
5. Tense Competition: From the relentless Toyota to the giant Volkswagen, luxurious BMW and respected Mercedes to the sleek electric cars such as Tesla it is difficult to keep up with all of these competitors. With so many strong rivals, GM’s Marketshare is constantly under threat.
6. Slowdown in the Auto Market: No matter what industry you are in, a slowdown in the market would threaten the profitability and existence of all companies within that industry. GM’s revenues are falling due to slowdown in global auto market.
7. Stringent Regulations: Countries are now imposing strict emission regulations to counter the growing threat posed climate change. Tighter regulations could impact GM’s profits, long-term sustainability, and operations.
GMC SWOT Analysis Template
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