General Motors

General Motors
Background
The General Motors Company, led by William C. Durant, was
established in 1908 to combine a number of automobile
manufacturers that produced Buick, Oldsmobile, Cadillac,
Oakland (later Pontiac), Ewing, Marquette, and other vehicles,
as well as Reliance and Rapid trucks.
• Vision
To lead the automotive industry in creating a world with zero
crashes, zero emissions and zero congestion
• Mission
To earn customers for life by building brands that inspire
passion and loyalty through not only breakthrough technologies
but also by serving and improving the communities in which we
live and work around the world
Strategic objectives
Our growth plan serves as a compass for our direction. In order to
achieve our goal of Zero Crashes, Zero Emissions, and Zero Congestion,
it provides a framework for the decisions we make. Our main goal is to
provide top-notch customer service while expanding our brands, client
base, and software-enabled services. While aiming for a diverse,
equitable, and inclusive team, we are developing a culture that leads
the way in health and safety.
PESTEL analysis
Five forces analysis
• Threat of New Entrants:
The market share and revenues of established companies might be
impacted by new competitors. Switching costs and economies of scale
are two elements that affect the danger posed by new competitors. In
the case of General Motors, we may assume that switching costs are
moderate. Additionally, because each unit is expensive and not sold at
a loss, the idea of economies of scale is irrelevant and can be viewed as
a weak influence.
Threat of Substitutes:
Substitute availability, variety, and cost are three elements that might
affect the threat of replacements. Since this is the automotive industry,
and switching costs are moderate, purchases are typically capital-
intensive and don't necessarily reflect economies of scale. There are a
good number of alternatives on the market, but because there aren't
many options, buyers are less inclined to move to something that is
quite similar to what they already own.
Bargaining Power of Customers:
Customers in this context are similar to those in the car sector. The earnings and revenues are driven
by them. The switching costs, availability of substitutes, and customer cohesion are variables that
affect these consumers' capacity to negotiate. The switching costs in this situation are minimal, as
was already indicated. Price sensitivity may cause this flipping. There are a good number of
alternatives to General Motors. Customers, who are primarily people here, don't particularly exhibit
any consistent behavior
Bargaining Power of Suppliers:
The availability of raw materials for General Motors' vehicles and other
products is the responsibility of its suppliers. For suppliers to maintain
continuous production in accordance with the matching demand,
supply continuity is essential. The quantity of supply, the number of
suppliers, and the level of forwarding integration all have an impact on
the suppliers' ability to negotiate. General Motors has access to a large
number of suppliers, including those for iron, aluminum,
semiconductor components, etc. Since the variety of the material
offered is not drastically different, there is not much difference
between them.
Competitive Rivalry:
The factors that influence this force are the aggressiveness of

firms, number of firms at play, differentiability factors, exit
barriers. The aggressiveness of the other players can be
determined by their marketing campaigns, research and
development investments, price competitiveness, etc. It is well
known that there is good price competition in the automotive
industry. All the firms invest their fair share in research and
development in coming up with innovations to differentiate
themselves. So, aggressiveness is clearly high.
Strategy
• GM's strategy to increase earnings from ICE vehicles while

gaining market share leadership in the U.S. for electric vehicles.
The Ultium modular EV platform, which GM created to provide
a wide range of highly attractive EVs utilizing standard, scalable
components, will be the main driver of the company's growth.
Conclusion
General Motors is a well-known brand in the
automobile industry, and its cutting-edge features have
helped them build a sizable and devoted consumer
base. The US-based corporation has already seized
11.2% of the worldwide automobile market share.

General Motors

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General Motors

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The factors that influence this force are the aggressiveness of

• GM's strategy to increase earnings from ICE vehicles while

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