Changing Strategy of General Motors Essay

General Motors Company, commonly known as GM (listed General Motors Corporation before 2009), is an American multi stateal automotive sens headquartered in Detroit, Michigan, and the worlds largest automaker, by vehicle unit gross sales, in 2011.Earlier GM employ to dump their old and unsold models into developing countries and they used to neglect markets in developing nations thinking that they atomic number 18 not profitable, and in addition they dont view as any R&D centres outback(a) Detroit, US. So there is no way of rude(a) innovative models entranceway into developing markets. But now they slowly started penetrating developing nation markets by introducing their new models in those markets as there be enormous untapped potential customers.Automotive Industry Analysis using door hold upers five forces model 1) Threat of New Entrants The threat of new entrants is very low in the automobile industry. The industry is very ripen and it has successfully reached economi es of scale. In order to compete in this industry a manufacturer must(prenominal) be able to achieve economies of scale.2) Threat of assuagement ProductsThere are no direct substitutes for automobiles.3) Bargaining Power of SuppliersThe dicker power of suppliers is very low in the automobile industry. There are so many a(prenominal) parts that are used to produce an automobile, that it takes many suppliers to accomplish this. When there are many suppliers in an industry, they do not have much power. 4) Bargaining Power of BuyersThe bargaining power of the buyers is pretty high. The buyers being consumers purchase almost all of the industries output. The manufacturers depend on them to catch ones breath in business. The buyers also are a significant portion of the industries revenue. If they cannot keep their buyers happy then they risk losing them to their competitors. 5) Competition among rivalriesRivalry among the competitors is very unfluctuating in this industry. The major competitors are so closely balanced that it increases the rivalry. In order to gain market share in the automobile must gain market share by taking it from their competitors. One of the former(a) reasons there is such high rivalry is that there is a wish of differentiation opportunities.Strengths of GMThey include the high brand image and its worldwide presence of being one of the biggest automotive industries.Weakness of GM* change magnitude Dealer Network.* Working capital is going down because of low sales volume and it led to negative effect on R&D. And also suppliers are losing their trust.* Inadequate performance among some business segments and low debt ratings are other weaknesses.Strategies of GM in Future1) As I mentioned higher up they will be concentrating on developing nations where there is huge untapped potential customers, which will help their situation which includes them in further yield and improved financial situation. 2) They will leave behind their Detro it centric control and try to change according to the changes in the Automobile Industry. 3) Try much to invest in R&D so that they will have a competitive advantage in future.Referenceswww.gm.com/www.wikipedia.com/International Business Competing in the Global MarketplaceCharles WL HillArun K Jain