General Motors. The purpose of this paper is to provide an overview of the automotive industry and to analyze it based on Porters Five Forces model. In addition, it will include a SWOP analysis for GM in order to discover its competitive advantag

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Table of Contents

EXECUTIVE SUMMARY…………………………………………………………....2

AUTOMOTIVE INDUSTRY…………………………………...………………….3

        Industry Lifecycle………………………………………………….……..3

        Threat of New Entrants………………………………………………………...4

Threat of Substitution………………………………….………………………..4

        Bargaining power of Customers………………………………..………………....5

        Bargaining power of Suppliers……………………………………………………5

        Rivalry among Established Competitors………………………………………….5

General Motors……………………………………………………………………….6

        Strengths………………………………………………………………7

Weaknesses…………….……………………………………………………7

Opportunities…………………………………………………………………7

Threats…………………………………………………………………8

OUTLOOK…………………………………………………………………………….8

RFERENCES………………………………………………………………………….9

EXECUTIVE SUMMARY

The automotive industry has fully entered into a mature stage of development, meaning that competition between firms can be crueler. General Motors (GM) is one of the most successful companies in this industry; their declaring of bankruptcy in 2009 has now led to a profitable 2010, created through a realigned strategy and focus.  The purpose of this paper is to provide an overview of the automotive industry and to analyze it based on Porter’s Five Forces model. In addition, it will include a SWOP analysis for GM in order to discover its competitive advantage and what the company could become in the long run.

        The new GM has emerged from the economic crisis healthy and is looking to become a leader in green technology and fuel efficient vehicles. Customers are becoming more environmentally conscious and looking for alternatives that suit this desire. GM is attempting to win back public trust, and customer confidence in the brand. The Canadian market is still untapped in to electric car market, but Canadians are ever more aware of environmental issues.

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AUTOMOTIVE INDUSTRY

Industry Lifecycle

Since the first practical automobile in 1885, every year, the automotive industry develops, manufactures, and sells millions of cars all over the world. The industry’s potential buyer base is large and ranges from all kinds of individual and business customers. So far, the automotive industry has progressed through the embryonic, growth, and shakeout stages. IT has reached the maturity stage in North America.  The chart below shows new passenger car sales between 2000 and 2007 as well as North American vehicle ...

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