General MOTORS pORTERS fIVE fORCES Case Study
Key Learning Outcomes
- Use Porters five forces model to analyse an industry on the basis of the five competitive forces.
- Analyse the US automobile industry and how the five forces have affected General Motors and rivals and the impact on industry structure, attractiveness, and profitability.
- Apply strategy business models and frameworks such as Porters five forces to real company cases.
1.0 INTRODUCTION
Incorporated in 2009, General Motors manufactures and sells cars, automobile parts and provides automobile finance solutions which include retail loans and lease lending. The company operates in several segments which include G.M North America, international operations, South America and GM financial company (Reuters 2018).General Motors manufactures and markets brands like Cadillac, Chevrolet and GMC among others in and outside North America as well as in its various subsidiaries like in Asia (Reuters 2018).The company is the US market leader with market shares of 17.16% followed by Toyota Motor Corporation with 14.44 and Ford Motors company 13.86%(Statista 2018).The company’s revenue declined from$149million in 2016 to $145 million in 2017 while its profit margin increased from 8.05% to 8.15% in 2017(Orbis 2017).