General Motor Company Case Analysis

General Motor Company Case Analysis

General Motors Company

Detroit, Michigan, United States

Motor vehicles Industry

Background and History

The company began in 1908 with the development of horse cart vehicles. It was formed by more than five brands that came together to increase their scale of operations. Since then, the company has been growing as some of the partners left, and brand names changed. It has been experiencing ups and downs, but the most serious occurred in the past decade around 2004 where Richard Wagoner’s management was at the helm. It took time, but later it was supported by America’s government after the demand for resignation. The new administration has transformed the company into the best know trucks manufacturing company (Abrahamson, 2018). The diversification has led to its current stability and position in the industry.

Analysis via Porters Five Force Model

The motor vehicle industry has very many companies that compete. Most middle-income countries purchases vehicles due to their affordability. The type of cars manufactured by General motors includes Chevrolet, which has been well known for its quality and unique nature, but that has not limited the diversification into smaller and affordable SUVs that are also bearing the same quality stand the original brand. The company can offer quality affordability and durability to its customers, attracting a considerable population since its upcoming operations. Initially, the company was not diversified, and hence it suffered pricing crises as it would only reach the able individuals.

 

Strategy Used

The primary strategy that general motors adapted after its downfall is giving security to the investors and the whole human resource team. Any time a company is on the verge of collapse, the workers and prospective investors are always scared of their future. The company was able to convince the government to invest a chunk of $30 billion in it, and most of the parties got assurance and peace (McNulty & Wisner, 2014). The government would be a shield as they have enough machinery to survey and check the possible loophole of the company’s investment. The government has the powers to make the faulty management account for their mess through the justice system. Hence the strategy gives the investors and customers confidence in the contend operation of the company. It was later able to raise huge capital, which facilitated many operations, leading to better gains and moderate prices for the products.

Specific Strategies

Cost Advantage

The company has invested in its ability to operate in a friendly manner with customer, suppliers and the government. The suppliers can offer them the best prices through the negotiations and agreements based on the two take holders’ inter-operational means. The managerial team worked on strong bonds and deals that gave the suppliers assurance of their continued services for a long time. Such guarantees allow the suppliers to sell the items at the most favourable prices as they are not worried about their tomorrow due to the assurance of continued supplies (Saranga et al., 2018). Customer relationship management operates on online tools to make the company well known and place it closer to its customers. The existing customers are given reminders and frequently updated on new products through their recorded information. In contrast, the prospective customers are given accessible channels to get adequate information about the products on markets, including the features.

Recommendation

The company should learn to trace down all the activities in the many branches and processes. Big companies are exposed to small inner problems that cannot be readily visible, but they lead to a downfall. The best action to take is running continuous operational surveys to determine the possible loopholes within the company. The management should coordinate a well-tracked system and add several audit process. It will enable tracking of the suspects of fraudulence or disorganization. General Motors should capitalize on its strengths and convert its opportunities.

Opinion

In my view, general motors should diversify its operation s in terms of the number of products it ventures in, but at the same time, they should work on one specific brand that will make its name. The operation of any company is made distinct by the unique features in a particular model. The investment should focus on the appearance and quality as most people prefer good looking things and they also mind about the lifetime of the motor.

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