Gm Swot Analysis

Background

The primary reason for choosing GM is that we like cars. GM has been a staple of traditional American manufacturing for nearly a century. The company has created automobiles that truly represent Americana at its best, like the Camaro. More recently however the company has fallen on hard times, and resorted to government loans, to ensure the company survived the economic downturn of 2008-2009. Earlier this month (April 2010) GM announced that it had paid back its government loans in full with interest and 5 years ahead of schedule.

Overview

General Motors or GM was the largest car producer in the world for 77 straight years. Between 1931 and 2008, GM sold more cars worldwide than any other firm. In 2008, GM was surpassed by Japanese car giant Toyota.

GM was founded in 1908 in Detroit Michigan where it is still based today. Since its inception, it has expanded to sell cars and trucks in 140 countries across North America, Europe, Asia-Pacific, Latin America, the Middle East and Africa. In 2008, GM sold 8.35 million vehicles. GM's largest national market is the United States, followed by China, Brazil, the United Kingdom, Canada, Russia and Germany.

Strategy Diamond

The information below was synthesized from a number of different sources however the primary source was GM's 2010 10-K.

GM has struggled in the recent history with a lack of clear vision and strategy. Until 2009 GM was the world's largest auto maker. They had a worldwide presence and manufactured nearly every type of vehicle imaginable. GM developed the worldwide presence through many mergers and acquisitions. While M&A activity widened the scope of product line GM had to deliver, it also diluted their strategy.

GM grew from a American based auto producer to a worldwide power house. On the surface, it would appear that there would have been many economies of scale and scope. The human capital associated with designing, marketing and building cars should remain the same, across product types. There is no inherent reason that a car build with a Opel badge on it would be designed, engineered, or manufactured any differently than a car with a GM badge on it. Furthermore, as the world's largest