SWOT and PESTEL Analysis of General Motors
General Motors is an American multinational company and is one of the world’s largest motor vehicle manufacturers. Its headquarters are located in Detroit and is known for its design, manufacturing, marketing, and distribution of vehicles. The company was originally founded by William C Durant in the year 1908. The Company manufactures vehicles in 37 countries across the globe. It is a stakeholder of foreign brands as well, which include Wuling, Baojun, and Holden. The SWOT and PESTEL analysis of the company General Motors are discussed in this context.
SWOT Analysis of GM
The competitive position of a company is generally evaluated with the framework of SWOT, which is an acronym for Strengths, Weaknesses, Opportunities, and Threats. The analysis of the competitive position of a company is mainly evaluated by the method of SWOT, with an aim of facilitating realistic and fact-based data related to the company. It can also be described as a strategic planning technique for providing effective assessment tools. With this technique, it is possible to assess the performance, competition, and risk along with the potential of a particular business.
The SWOT of General Motors is evaluated in the matrix below-
Strength
- It works in a joint venture with local Chinese automotive companies
- It has a strong position in US automotive market ‘
- It has effective sustainability and environmental policies
- Possess a strong brand portfolio
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Weakness
- It is largely dependent on the U.S for revenue generation
- The sales growth is mainly dependent on pickup trucks and sales growth
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Opportunities
- Low prices of fuel can increase the demand for the pickup trucks
- The timing and the frequency of new model release is an opportunity
- The demand for the autonomous vehicle is an opportunity
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Threats
- General Motors faces increasing competition
- The rising exchange rate of the U.S dollar is a threat
- An increase in government regulation is a threat
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PESTEL Analysis of GM
PESTEL is a tool that analysis the macro environment of an organization. The Letters of PESTEL stands for Political, economic, social, technological, environmental, and legal. This tool is also described as an analytical tool that reflects the strategic business planning of an organization. The PESTEL analysis of General Motors is indicated as follows-
Political
- Government promotes the use of public transport, which is a threat
- Aggressive tax policies on combustion-type automobiles are a threat
- The company has an opportunity of having political stability in major markets
Economic
- A high growth rate is observed in developing markets which is an opportunity
- The company has economic stability in major markets, which is an opportunity
- An increase in competition in developing markets is a threat
Social
- An increase in demand for electric vehicles is an opportunity
- An increase in demand for self-driving vehicles is an opportunity
- The increase in demand for vehicle-sharing and ride-hailing programs is a threat
Technological Factors
- An increase in the implementation of self-driving is an opportunity
- The rising fuel efficiency in automobiles is an opportunity
- An increase in the development of electric vehicles is an opportunity
Environmental Factors
- Change in climate patterns is an opportunity
- Rising concern on air quality effects of automotive emission is an opportunity
- Rising interest in business sustainability is an opportunity
Legal Factors
- The expanding regulations on automobile safety are an opportunity
- Stricter emission regulations are an opportunity
- Expanding environmental regulations is an opportunity
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