 Economic Factors Business Cycle Consumption Employment

 Competitive Factors entry and exit strategies competition market segments

 Geographical Factors headquarters warehouse location foreign markets

Degree of Rivalry Although there are several competitors within the industry, the traditional powerhouse automobile companies such as GM, Ford, and Chrysler have controlled the market for the past century. There is somewhat of a threat within the industry when considering foreign carmakers such as Toyota, Honda, VW, and Hyundai.

Threat of Substitutes  As of now, there is not much of a threat, considering the compatibility and convenience of the automobile. Also, there has not been much talk of any type of alternative.  If there were to be a threat to the automobile industry, it would come from one of the following units: Bus, train, watercraft, or airplane. These are the only reasonable threats to the industry.

Barriers to Entry  In order to start an automobile company, a very large amount of capital is needed. Also, considering the age of the industry, the difficulty is only that much higher. Therefore, the barrier of entry is considered “very large”, and almost impossible.

Buyer Power  With low switching costs, and the ability to buy in large quantities, the buyer power of companies within the industry is considered “very high”  Also, once one unit is produced, the cost of production takes a considerable decrease because the cost of the initial creation of the product is much higher than the units that follow. This also plays favor for the buyer because with the standardization of cars the cost for buyers is considered reasonably low.

Supplier Power  Because of the minimal number of automobile retailers, the supplier power is considered “low”. This results in suppliers being unable to dictate prices and conditions.

Quality/Product Performance (weight -.3, GMC – 8) Technology (weight -.15 GMC – 8) Cost (weight -.25 GMC – 8) GMC Overall Strength Rating 7.95 out of 10

 Assesments of sucsess bsased off specific performance indicators Market Share Sales Growth Net Profit Margin Return On Equity

 Managerial Factors Corporate Social Responsibility Strategic Analysis Ability to Meet Changing Technology Meeting the Competition

 Competitive Factors Product Strengths Market Share Low Costs Customer Concentration

GM has moved to a more flatter Organizational structure This aids in having executives be more accountable for their portfolio Mark Reuss head of GM North America “This structure has been developed with as few layers as possible between me, the dealer and the customer.

 Founders Beliefs: William Durant  Key Executives Style  Cohesiveness and Collaboration  Consistent communication  Degree of Social interaction  Opportunity for growth  Degree of Innovation

 Phase 1: Initiation establishment of the company by William Durant in  Phase 2: Formalization – demand for the automobile and the establishment of Buick as the flagship Brand  Phase 3a: Expansion – Acquiring of other brands to form the Group GM  Phase 3b: Coordination- Reengineering of the product and the Business model  Phase 4: Globalization: Dealing with new competition and a whole new marketplace

 Four Blue Oceans in GM history 1924 Japanese Fuel efficient car Chrysler Minivan Electric Car

 Empirical Creativity  20 Mile March  SMaC Recipe