Strategies That Capitalize On An Organizations Strengths Marketing Essay

Strategies That Capitalize On An Organizations Strengths Marketing EssayA SWOT Analysis is used to develop strategies that capitalize on an organizations strengths, minimize the effects of all weaknesses, exploit available opportunities and defend a additionst threats. Implementing these strategies leads to achieving the organizations objectives.SWOT analysis looks at your strengths and weaknesses, and the opportunities and threats your business faces. By focusing on the key factors affecting your business, now and in the future, a SWOT analysis provides a clear basis for examining your business performance and prospects.INTRODUCTION commonplace Motors Corporation is the worlds largest automaker go with founded in 1908 whichEmploys about 326, 999 hatful around the world with its headquarters in Detroit, Michigan, USA. Founded in Flint, Michigan as a holding union for Buick, then controlled by William C. Durant and acquired Oldsmobile later that year. The following year, Durant br ought in Cadillac, El more(prenominal) and Oakland. In 1909, popular Motors acquired the Rapid Motor Vehicle Comp whatever of Pontiac, Michigan, the predecessor of GMC Truck. A Rapid became the first truck to conquer Pikes Peak in 1909. Durant disjointed control of GM in 1910 to the companys bankers, because ofthe large amount of debt taken on in its acquisitions. GM holds the biggest sh ar in GM Daewoo Auto Technology Co. of second Korea and has product, powertrain and purchasing collaborations with Suzuki Motor Corp. and Isuzu Motors Ltd. of Japan. The company also has advanced technology partnership with Toyota Motor Corporation of Japan, DaimlerChrysler AG and BMW AG of Germany, and vehicle manufacturing Ventures with several automakers around the world, including Toyota, Suzuki, print Automotive Industry Corporation of China, AVTOVAZ of Russia and Renault SA of France. GM along with its strategic partners manufactures trucks cars in 31 countries, and the vehicles through t hese well-known brands Buick, Cadillac, Chevrolet, FAW, GMC, Daewoo, Holden, Jiefang, Opel, Vauxhall and Wuling. China is known to be the largest national market, followed by the U.S., Brazil, Germany, U.K., Canada, Italy.General Motors Company develops, produces, and markets cars, trucks, and split worldwide. 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 removed of North America. In addition to the products it sells to its dealers for consumer retail changes, the company also sells cars and trucks to authorize customers, including daily rental car companies, commercial fleet customers, leasing companies, and governments. As of December 31, 2009, the company had 5,619 vehicle dealers in the U.S. 568 in Canada and 263 in Mexico. Additionally, the re were a total of 14,317 distribution outlets throughout the rest of the world. Signifi squirtt Events In February 2010, the company completed the sale of Saab Automobile AB to Spyker railcars NV. In September 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 Bright Automotive, Inc. The collaboration is targeted at offering an voltaic commercial fleet vehicle. In October 2010, General Motors Company had set up a used car joint venture with Shanghai Automation Instrumentation Co., Ltd. to splay 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 m arket. The companys headquarters is located in New York, fall in States and looks forward to establishing an outlet in every country of the world.Product analysesThe planning strategy is looking on how the GM products are faring in the world auto market. The existence of the company in the market is ground on an extensive research that was carried out in the European market which shows that there is up to now large untapped market potential in the auto sedulousness in Europe and other parts of the world. The GM Company specializes in Designing and making of automobiles, trucks, locomotives, and related parts such as chassis, interiors, drivetrains, and electronics (Brandi, 2007).The company employees more than 205,000 people in every study 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 given below.Strengths1. large-mouthed Market ShareAlt hough GMs market share in the US has dropped it is still very much competitive at 26 percent. They also have an change magnitude share in the Chinese market. With the right decisions there is no reason for GM to not become the automotive leader it once was.2. Global recogniseAs explained above even with GMs recent decline they still have 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 most of them. If you recall I mentioned above that a sure 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 oppose planning and proper implementation of those plans that will 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 finally century. A large reason for that is the wide variety of quality 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 finance ProgramSince its establishment in 1919 it has proven to be GMs most reliable source of revenue.5. OnStar Satellite Technology demonstrable 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 hint 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 Energy front endThis is GMs biggest weakness. The alternative energy/hybrid trend has begun to take place in the automotive industry and GM has been one step behind the competition in endpoints of alternative energy vehicles. This has led to many problems including loss of market share and a decrease in company profit. In order for any automot ive company to be successful from this point forward they must be Hybrid friendly and fuel efficient.2. Poor Organizational StructureAs we can see in exhibit 1 of the case GMs organizational structure seems to be too vertically integrated. This causes a lack of communication amidst employees from top to bottom and may have played a part in GM falling behind on the alternative energy movement.3. dead(prenominal) 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 ROE has dramatically decreased over the recent years dropping to 10% in 2004. This is a situation that shareholders will not be pleased with.4. Overly helpless 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 entirely on financing in order to turn profit, especially if they want to compete with Honda and Toyota who are rapidly growing.6. Poor Credit StatusGMs credit side 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 getting denied based on their credit at this point, the seriousness of the matter is certainly apparent.OpportunitiesProduce fuel-efficient, smaller, and exalteder-quality models that can attract the consumers.Chinese government condensed automotive taxes in order to assist declining sales.In February 2009 citing declining manufacturing numbers, the State Bank of India decreased interest rates on automotive loans.Establish or Equip facilities to manufacture advanced technology vehicles that would suffer up certain fuel econom y and emissions standards.One of the big opportunities is to shift manufacturing to other amenities 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 belongings in mind the customer preferences, because in the automobile industry, the needs of the customer are the valid puncture points that will provide profitability if concerned with delicately. Expansion of their business bear upones, but also keeping in mind the preferential influence of the custome rs. VEBA can help General Motors save up to $2.5 to $2.8 billion a year in cash 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 giving GM the opportunity to once again become the automotive industrys leader in innovation and technology.9. Continuing to string out 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 unconditional 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 pop 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 system resulted decrease in consumer wealth.The crisis mainly felt in the U.S and also affected 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 Big 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 allied anxiety concerning carbon emissions have sharp sensitivity to environmental protection worldwide and particle accelerator mil eage standards.U.S manufacturers are set about soaring gasoline prices, wellness care costs for an aging workforce, dependence on declining SUV and eroding market share.The company is facing very high labor and raw material cost as compared to Asian manufacturers.GM is also facing criticism on its culture and bodied practices. In 2007, its employees union went on the first countrywide strike due to which a transmission 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 deceased through losing its market share.) Regulations and legislative authorities engaging the industry more actively. Consumer lawsuits are also present to be accounted fo r. 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. Rising terminate PricesWith GM being a large producer in both trucks and SUVs, sales have drastically decreased due to the lack of fuel efficiency. The jump out 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 CompetitorsGM 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 preceding 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. pull up stakes of this threat is their own doing and the other is simply 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 Care 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.boilersuit 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 distribute needs 9 billion in total. Since the General Motors has issued to be resolved, then GM will have a hard time coping 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-term debts therefrom making the company economically viable. Wagoner claims that if their turnaround plan will wor k then GM will profit within 24 months. General Motors already presented their plan to the bondholders and it is up to them to scrutinize the plan and conform for a deal to be done.With the General Motor s new CEO , 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 usance of the government in the overall 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 submission within sixty days . The new business plan , which was submitted to the US government in December 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 operate Committee , new approaches are outlined 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 relation to a specific objective. This decision making technique can also be used for making personal decisions and in a variety of different situations.