General Motors Pestle, Swot and Porters Five Forces Analysis 2018

By: Magezi K Prudence

As the largest auto maker in the world, General Motors has experienced success through the years. But all is not well with the giant auto maker in the recent years. The company has been losing market shares from 25.59% in 2005 to 17.6% in 2017. Operating in the hyper competitive market of US, the company has experienced a downturn in its profits and revenue as well. Various external factors like Donald Trump’s tariffs on imported steel; the deteriorating US market and clean car laws have affected GM’s growth and revenue. Using PESTLE analysis, we are going to analyze how macro-economic factors including political, economic, social, technological and environmental issues are affecting the company. Using Porters five forces, we are also going to analyze the competitive environment in the industry GM is operating in and how it is affecting its profitability. We will also use SWOT analysis to analyze its strengths, weaknesses, opportunities and threats and how it can use these opportunities and strengths to mitigates the arising threats.

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