Strategies That Capitalize On An Organizations Strengths Marketing Essay

Strategies That Capitalize On An Organizations Strengths Marketing EssayA jam Analysis is apply to develop strategies that capitalize on an organizations strengths, minimize the effects of any weaknesses, exploit available opportunities and defend over against scourges. Implementing these strategies leads to achieving the organizations objectives.SWOT digest looks at your strengths and weaknesses, and the opportunities and threats your business faces. By focusing on the key factors affecting your business, nowadays and in the future, a SWOT analysis provides a clear basis for examining your business performance and prospects.INTRODUCTION superior general Motors sens is the worlds humongousst automaker company founded in 1908 whichEmploys about 326, 999 people around the world with its headquarters in Detroit, Michigan, USA. Founded in Flint, Michigan as a holding company for Buick, thusly controllight-emitting diode by William C. Durant and acquired Oldsmobile later that yea r. The following year, Durant brought in Cadillac, Elmore and Oakland. In 1909, General Motors acquired the quick Motor Vehicle Company of Pontiac, Michigan, the predecessor of GMC Truck. A Rapid became the first truck to conquer Pikes Peak in 1909. Durant lost control of GM in 1910 to the companys bankers, beca custom ofthe large amount of debt taken on in its acquisitions. GM holds the oversizedgest sh are in GM Daewoo Auto applied science Co. of South Korea and has product, powertrain and purchasing coactions with Suzuki Motor Corp. and Isuzu Motors Ltd. of Japan. The company also has advanced engineering science partnership with Toyota Motor Corpo balancen of Japan, DaimlerChrysler AG and BMW AG of Germany, and vehicle manufacturing Ventures with several automakers around the world, including Toyota, Suzuki, Shanghai Automotive Industry toilet of China, AVTOVAZ of Russia and Renault SA of France. GM along with its strategic partners manufactures trucks cars in 31 countri es, and the vehicles through these well-know brands Buick, Cadillac, Chevrolet, FAW, GMC, Daewoo, Holden, Jiefang, Opel, Vauxhall and Wuling. China is known to be the largest study commercialiseplace, followed by the U.S., Brazil, Germany, U.K., Canada, Italy.General Motors Company develops, produces, and markets cars, trucks, and parts ecumenic. The company offers its products under the brand names of Buick, Cadillac, Chevrolet, GMC, Daewoo, Holden, Opel, Isuzu, Vauxhall, Jiefang, FAW, and Wuling. The companys cars, trucks, and parts are marketed through retail dealers in North America, and through distributors and dealers outside of North America. In addition to the products it sells to its dealers for consumer retail sales, the company also sells cars and trucks to fleet clients, including daily rental car companies, commercial fleet customers, leasing companies, and governments. As of declination 31, 2009, the company had 5,619 vehicle dealers in the U.S. 568 in Canada and 263 in Mexico. Additionally, there were a total of 14,317 distribution outlets passim the rest of the world. Significant Events In February 2010, the company completed the sale of Saab Automobile AB to Spyker Cars NV. In folk 2009, the company decided to wind-down the Saturn brand and dealership network. On August 18, 2010, General Motors Corporation is collaborating with SAIC Motor Corporation. The collaboration is targeted at developing 1.0 litre and 1.5 litre engines for small cars. On August 26, 2010, General Motors Company has collaborated with opalescent Automotive, Inc. The collaboration is targeted at offering an electric commercial fleet vehicle. In October 2010, General Motors Company had represent up a used car joint venture with Shanghai Automation Instrumentation Co., Ltd. to hyperbolize into an untapped segment of the worlds biggest auto market.Mission and visionGM is one of the respected auto companies in the world. It has a variety of products that ensure that the company is faring well in the market. The companys headquarters is located in hot York, United States and looks forward to establishing an outlet in every country of the world.Product analysesThe planning strategy is flavour on how the GM products are faring in the world auto market. The existence of the company in the market is based on an extensive enquiry that was carried out in the European market which shows that there is soothe large untapped market potential in the auto attention in Europe and separate parts of the world. The GM Company specializes in Designing and reservation of elevator cars, trucks, locomotives, and related parts such as chassis, interiors, drivetrains, and electronics (Brandi, 2007).The company employees more than 205,000 people in every major region of the world and does business in some 157 countries. GM and its strategic partners manufacture cars and trucks in 31 countries of the world. The SWOT analysis of General Motors is granted below.S trengths1. Large Market ShareAlthough GMs market conduct in the US has dropped it is fluent very ofttimes competitive at 26 percent. They also puzzle an increasing share in the Chinese market. With the justly decisions there is no reason for GM to not make the automotive leader it once was.2. globular ExperienceAs explained above even with GMs recent decline they still be in possession of the market share and the experience to bounce back. They have been a worldwide company for nearly a century now and have established themselves as the global leader for just about of them. If you recall I mentioned above that a current opportunity for GM is to expand globally and as we can see they already have the experience to do so. It is just a matter of the correct planning and proper implementation of those plans that get out decided whether or not GMs goals are achieved.3. Variety of Brand NamesGM as I mentioned has been the automotive leader for the majority of the last century. A large reason for that is the wide variety of graphic symbol brand names that appeal to all target markets. The current GM brands include Chevrolet, GMC, Cadillac, Buick, Pontiac, Saturn, Hummer, Saab, Daewoo, Opel, and Holden.4. GMAC Customer pecuniary stick out ProgramSince its establishment in 1919 it has proven to be GMs most reliable source of revenue.5. OnStar Satellite engineering scienceDeveloped in 1996 OnStar currently has over 3 million subscribers and is standard on all GM vehicles. This technology allows the vehicles to be tracked in the event of an emergency or theft. It also allows the driver and or passengers the ability to communicate with OnStar personnel at the click of a button.Weaknesses1. Behind on Alternative efficacy MovementThis is GMs biggest weakness. The alternative energy/ cross trend has begun to take place in the automotive industry and GM has been one step behind the arguing in terms of alternative energy vehicles. This has led to many proble ms including loss of market share and a decrease in company moolah. In severalise for any automotive company to be successful from this point forward they must be hybridizing friendly and fuel cost-efficient.2. Poor Organizational StructureAs we can see in viewing 1 of the case GMs organizational structure seems to be too vertically integrated. This causes a lack of intercourse between employees from top to bottom and may have played a part in GM falling behind on the alternative energy movement.3. Stagnant ProfitabilityLooking at GMs profit we see that they are certainly struggling with respect to the size of their company. Their profit margin was about 1.5% and the hard roe has dramatically diminish over the recent years dropping to 10% in 2004. This is a part that shareholders will not be pleased with.4. as well Dependent on US marketGM has become too dependent on the US market and must take advantage of the opportunity to expand globally. The competition is becoming too strong to focus on just one country.5. Overly Dependent on General Motors Acceptance Corporation (GMAC) FinancingGM has become too dependent on its financing program. Granted it is a great strength for GM, however they once again cannot rely solely on financing in order to turn profit, especially if they want to compete with Honda and Toyota who are rapidly upgradeing.6. Poor Credit StatusGMs credit status has like everything else has been steadily declining. Their current ratio is just barely above 1 and their acid test is even lower. Although, I dont see them acquiring denied based on their credit at this point, the seriousness of the matter is certainly apparent.OpportunitiesProduce fuel-efficient, smaller, and higher-quality models that can overstretch the consumers.Chinese government condensed automotive taxes in order to encourage declining sales.In February 2009 citing declining manufacturing numbers, the State Bank of India decreased interest grade on automotive impart s.Establish or Equip facilities to manufacture advanced technology vehicles that would meet up certain fuel scrimping and emissions standards.One of the big opportunities is to shift manufacturing to other creature comforts in order to produce in-demand vehicles. Manufacturing could be done in those countries where the labor as well as material cost is low.Diversification in other related and unrelated products or shifting to the hybrid electric engines.The purchasing power of consumers is increasing due to end of financial crisis 2007-10. The firm can use the knowledge that it gained from Toyota Nummi joint venture and Saturn experience. It should build its image and gain more share in the market with its newly build confidence regarding the customers. New car models and designs should be introduced keeping in mind the customer preferences, because in the automobile industry, the needs of the customer are the valid puncture points that will provide positivity if concerned with delicately. Expansion of their business processes, but also keeping in mind the preferential regularise of the customers. VEBA can help General Motors save up to $2.5 to $2.8 meg a year in hard currency if the process is implemented strictly.8. Alternative Energy MovementIt is obvious that GM was behind its competition with regards to the research and development of hybrid vehicles. However hybrid technology is still very much new adult GM the opportunity to once again become the automotive industrys leader in innovation and technology.9. act to Expand Globally.Recently GM saw an increase in the Chinese automotive market, which proves their needs to be more emphasis put on foreign markets. If GM can infiltrate these markets and successfully grow along with their continuing focus on the US market they will be headed in a positive direction.10. Low Interest RatesWith the right marketing strategy the low interest rates have the potential to generate an immediate increase in sales. 11. Develop New Vehicle Styles and ModelsThis is an opportunity that will never be satisfied, meaning that GM should always be attempting to develop the automotive worlds most popular vehicles, and as we know, what is in today will be out tomorrow.ThreatsThe automotive industry crisis of 2008-2010 was the big downturn. Now it is challenge for industry players to recover.The financial crisis of 2007-10 caused by a liquidity deficit in the U.S banking transcription resulted decrease in consumer wealth.The crisis mainly felt in the U.S and also unnatural Asian and European automobile manufacturers.Car companies from North America, Europe, and Asia have implemented innovative marketing strategies to attract disinclined consumers.Major producers, including the Toyota and fine-looking Three offered significant discounts across their lineups.North American consumers shifted to more fuel-efficient and higher-quality product of European and Japanese automakers.environmental politics and a llied anxiety concerning carbon emissions have sharp sensitivity to environmental protection worldwide and gas mileage standards.U.S manufacturers are facing soaring gasoline prices, health care costs for an maturement workforce, dependence on declining SUV and eroding market share.The company is facing very high labor and bare-assed material cost as compared to Asian manufacturers.GM is also facing criticism on its ending and corporate practices. In 2007, its employees union went on the first countrywide strike due to which a contagious disease facility and two car assembly plants were closed down. The industry although has matured considerably, but there is still room for more improvements, and due to which new entrants are entering the market even though the competition is already tough. (New entrants, not likely pose much of a threat, although Domestic and Foreign competition both act as active threats for the firm that has already gone through losing its market share.) Regu lations and legislative authorities engaging the industry more actively. Consumer lawsuits are also present to be accounted for. Japan being a high manufacturing ground for automobiles, is being affected by the decline in its currency Yen. Current threat to the image of the GM is posed by the Senator Charles Grassley has accused GM for using bailout money to bailout of the loans it had taken from the U.S. and Canadian Govt. (The money used were paid, not through GMs profitability, but it was yet another loan acquired, so it is accused.)11. uprise Fuel PricesWith GM being a large producer in both trucks and SUVs, sales have drastically decreased due to the lack of fuel efficiency. The rise in fuel prices has played a significant role in creating the opportunity for development of both hybrid and more fuel efficient vehicles. As you will find with most threats, an equal opportunity will usually emerge as is the case here with GMs opportunity mentioned above.12. Growth of Competitors GM no longer has the luxury of being the known leader in the automotive industry and faces the reality that they are in serious trouble. As I mentioned earlier Toyota took the first step in the direction of hybrid technology and has since drastically grown and become the questionable automotive frontrunner to start the 21st century.13. Pension Payouts.Part of this threat is their own doing and the other is barely unavoidable. GM is responsible for providing generous pension benefits to its employees, which at the time seemed like a great idea, however they are now experiencing problems as more and more people begin to collect.14. Increased Health perplexity CostsGM, like many large companies with quality employee health care benefits, is experiencing a large financial hit that only gets worse as time continues.15. Rising Supply Costs, i.e. SteelOnce again this threat affects the entire automotive industry and forces each company to cut manufacturing and production costs as much as possible, without taking away from the quality of the product.OVERALL POSITIONThe current global crisis has affected almost all aspects of the economy. It has resulted to borrowing of money by the companies from the government and General Motors (GM) and Chrysler are among these companies. GM has already borrowed 13 .4 billion from the Treasury Department but they announced that they need 30 billion in total to compensate for the declining auto market. Chrysler on the other hand needs 9 billion in total. Since the General Motors has issued to be resolved, then GM will have a hard time get by up with the crisis. Two of the major issues are (1 ) GM needs to drop their unsecured debt burden from 27 billion to 9 billion which still has to be negotiated with the bondholders and (2 ) the debt of GM to United Auto Workers (UAW ) which amounted to 20 billion . GM Chairman and Chief Executive Officer Richard Wagoners plan for the company is to pay its debt and reduce its long-run debts th us making the company economically viable. Wagoner claims that if their turnaround plan will work then GM will profit within 24 months. General Motors already presented their plan to the bondholders and it is up to them to visit the plan and conform for a deal to be done.With the General Motor s new chief executive officer , Mr . Frederick Fritz Henderson s determination to reorganize the company , and the US government s strong effort to support the ailing businesses , recovery would be possible for General Motors . General Motors Corporation gets into supervised bankruptcy as the new strategy upon the advise of Steven Rattner , President Obama s auto task force chief (Whoriskey . bankruptcy is the term given once a company seeks for financial aide in form of loan from the government however , this agreement involves direct intervention and manipulation of the government in the overall military operation of the company bankruptcy is another President Obama s strategy to help in the recovery of the economy of the United States . The initial impacts of this agreement between GM and US government are the firing of GM s former boss Rick Wagoner and the formulation of new business plan for entryway within sixty days . The new business plan , which was submitted to the US government in celestial latitude last year constitutes new strategies and endeavor that will benefit in the recovery of General Motors Corporation . In the restructuring plan submitted to Senate Banking Committee and House of Representatives Financial Services Committee , new approaches are outline with the hope to competitively dominate the market once again .CONCLUSIONA SWOT analysis is a popular decision making tool in business which analyzes the strengths, weaknesses, opportunities and threats of the organization in sexual congress to a specific objective. This decision making technique can also be used for making personal decisions and in a variety of different situations.