General Motors (GM) Case Study: Porters Five

General Motors (GM) Case Study Porters FiveIn this dign case-study is explained in bits and pieces or so how the GM lost its commercialise parcel out owing to a number of factors.GM is an Ameri keister based company concentrating on a circuit of Brands,models and having a salient spread of price-bands.So the market focus failure in GM can be related to its portfolio proliferation and replication, which in return has given the company a spate of negative effects on cash flow. On the separate hand its competitor companies like Toyota and Honda sacrifice acquired a huge market sh be with a limited portfolio and a large acquisition of the market share. So the purpose of this report is to critic onlyy analyse the different strategic levels of GM motors with respect to the coroporate, calling and operational level. Also to analyse and identify the capabilities that would allow GM to achieve the lost competitive advantage and regain the market focus.CRITICAL ANALYSIS OF THE GM MOT ORS CASE-STUDYOn critically analysing the given case-study, GM lost $30.9 billion for the year 2008 and around $38.7 billion in the year 2007.So far , GMs market share has fallen to 24 pct from 31 percent last year, while Fords has risen to 18 percent from 15.5 percent. Chryslers Northeast Ohio market share has slipped to 9.8 percent from 10.3 percent a year ago.GMs national market share is about 20 percent, d deliver from 22.5 percent a year ago. Fords national share is about 16 percent so far this year, up from 14.5 percent.A diagrammatic presentation of the financial performance of these automobile companies is as given belowWHERE F-FORD MOTORSDCX- DAIMLER AND CHRYSLERGM- GENERAL MOTORSHMC- HONDA MOTORS companyNSANY- NISSANTM- TOYOTA MOTORSBusiness Level StrategyThe lynchpin elements to be highlighted at the business strategic level are as followsIntegrated BLS business level strategyFailed application trade-off between cost and differentiationImplications of united labour forc e and legal costs.Corporate Level StrategyThey process have a multilayer structure and the key process are all centralised that in turn is having a draw poker of impact on the company, they do not have any regional head and so there is no one who look are each regain in specify terms they only listen to the animal trainer and then decide what is right and is wrong. From the given data, we can come to a conclusion that the major reason behind the market loss was the lack of entrepreneurial spirit. The important this is that they do not have a specific structure as well, what they need to focalize is that as different companies such as its competitors concentrate on a specific segment and get there meshwork, the spirits are low and they are not going in the right direction, they lead have to work hard and promote the right segment to the right consumer needs, they are not even sure of what environment they are using the other line that they are facing is that they are not concen trating on the right consumer product for the right environment and so resulting in dip of the sales and in turn loss for the company.STRENGTHS OF GM TO ACHIEVE COMPETITIVE EDGEThe following are the capabilities that are exhibited by GM motors in order to revive indorse its position and achieve a competitive advantage in the market1. Large Market ShareThough the General Motors is been struggling to make profits in the past few years and it is running out of cash flow still it hold a very high sales market in japan and United states, the problem is that it is not making profits as it is not allowing a piling of cash flow to occur plainly still it is one of the largest automobile company in the world and it hold a large amount of market share.2. Global ExperienceThe company universe one of the largest company in the maker of automobiles it has a get a global name for itself as it has a lot of brands, as it has got a lot of brands and thought it all may not be successful it has ma de a mark in the global market and it has got a global work through and that is again a very big advantage that the company has.3. Wide range of brandsGeneral motors has the highest number of cars it has already got 95 different types of cars and as mindful there are around 18 segments in automobile industry and it has got 3 cars for each segments, that is one thing that only General Motors have been commensurate to achieve, thought it has been criticized by lot for not able to concentrate on any specific segment, but if they concentrate each segment properly and format the hard work in right direction they are bound to stick to.PORTERS FIVE FORCES MODELThe competitive structure of an industry is another important part of identifying factors that are a threat to diminish profitability. One of the most efficient ways to assess competitive issues is to consider Michael Porters five-force analysis. Porter (1980, 1985) has highlighted five such factors (1) competition between exi sting competitors, (2) threat of entry by new competitors, (3) price pressure from substitute or complementary products, (4) dicker tycoon of buyers, and (5) bargaining power of suppliershttp//www.themarketers.in/wp-content/uploads/2010/01/Porter_Five_Forces1.jpgRivalry between existing competitorsThere is always rivalry with other the competitors and that it needs to give a lot of importance, and it is the competitors with a better product that succeed in the todays market, so general motors but give a lot of importance to its competitors and always try and be ahead of them, in the present note they are lacking being them in a lot of ways, the rivals have got a lot of products which is more competent and that is more of the demandment that the customers are flavor for and they are also getting that important as they are quite important that they thing what the rivals are dont and what they are not doing.Threat of entry by new competitorsIn the present days market there, in any industry there is a lot of threat of new entrants in the market, s you should always think out of the box and try and be innovative as much as you can so that you have an advantage everywhere your competitors and even if there are any new entrants into the market, The another threat of the entry on a new company or competitors is that they might give you a thought price in the price and so you might need to cut on the prices of your products and this go forth indeed lead to less profits, aspect an automobile market is not a small market and there are a lot of hurdles for a new entrant into this expression of market that might lead them to trouble and this in turn will not let the new entrant to enter the market as this is require a lot of investment , moreover the new entering will have to capture a large amount of market share to have a good hold of the market.Price pressure from substitute or complementary productsFor instance the demand will never come flat in play for this section but it will have an impact with a lot of factors that influence it and it will generally be the substitute and the complements. For example in the U.K. when you want to travel to Central London you even though you have a car you will still not consider going with your have car, there are few reasons for not taking your car along with you and firstly you have a substitute that is available as taking a transportation in a form of tube is much easier it will save your time, money and you will not have the hassles of going through all he traffic this a substitute a lot of people use in London, the reason behind this is that firstly the transportation by your own car will be expensive and other thing is that in Central London there are a lot of parking problem and they will charge you congestion, so traveling by the tube will save all this hassles. So that is more beneficial for you, and this days a lot of people feel that the fuel prices or in other terms the gas prices are ris ing and so it will be better to come up an alternative or substitute to car as so this is reduce the sales of car not directly but indirectly.4. negotiate Power of BuyersBargaining power of the buyer here means that the power of the consumers who are will to buy a car, in this form of bargaining if a consumer who is not aware(p) of the prices and goes for a bargain for a car if the dealer doesnt agree to sell the car on that bargain then the impact will come directly on to the dealer and not to the manufacturer directly, the consumer might go to some other dealer to get his deal done. So it is the consumers who will benefit from that and this will lead the deals to give the customers a good deal and in this form the consumers are not dealing directly with the customers and so the dealers will suffer a less profit and not the manufacturer, so it will not always but might have an impact on the manufacturer.5. Bargaining power of the suppliersThe bargaining power of the suppliers me ans, the cost of raw material that is being used in the manufacturer, the labour function and the services that is being provided to them, and so in an auto manufacturer the labourer and the raw material, along with the the technology services are being used are playing a very important role, for instance we can go back into the case of General Motors and know that they had serious issues with the powers of the suppliers that is the labour that they had and that a lot of demands and that had to be fulfilled and that they were claiming a lot of pension, medical and attempt leave and also wanted their wages to be increase so that was all the troubles of that they were facing in the past and the reason that they lost a lot of business was the reason behind it.ENVIRONMENTAL ISSUES OF GM- 2011Shanghai Shanghai GMs Drive to Green strategy, which was launched in January 2008, is aimed at introducing products that offer better performance, consume less null and generate lower emissions th an vehicles currently on the road. The success of the green strategy didnt work out they. They are trying to work on the environment issues that a lot of cars this are using a lot of fuel and this generates a lot of smoke in the air leading to air pollution and so the amount of oxygen in the air throughout the word is decreasing with the increase in carbon-monoxide will lead to a lot of environmental problems, they are there for trying to drive people towards the direction of hybrid cars and they have named the project as green strategy and they are really promoting it, those it has not been a hit it has just been a flop they are still working on different strategies and they and conclude on a high node.