Market Analysis of General Motors (GM) in the Automotive Industry

Economics

INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
1. Description of selected company.............................................................................................1
2. Market analysis of General Motors (GM)...............................................................................2
3. Market structure of General Motors (GM)..............................................................................5
4. Considering the nature of the industry in which the firm operates..........................................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Management concept applies to one of essential principles concerned primarily with diverse
theories and models, to resolve complex market challenges (An, Zhang and Adom, 2019).
Implementing this concept in corporation attempts to assess the effectiveness and productivity
improvements in the very same way, to successfully lead the business. In this report, a research
on the automotive industry is developed to explain its role in the business surroundings by
selecting General Motors as the operating base. This company is focused because of its greatest
existence in the automotive industry, in which it has enhanced its business worldwide. Towards
this end, in depth analysis is carried out by analyzing the specific company's previous and
contemporary role in a relevant sport. In addition, various aspects of market structure are
analytically analyzed in order to suggest which one will be better for the current business in
order to run corporation highly competitive. In addition, key recommendations are made, when
considering social gains, for either smaller or larger government action on the development of
the automobile sector.
MAIN BODY
1. Description of selected company
General Motors is leading company in the world in production of 20th and early 21st
century automobiles (Canonico and et. al., 2020). It runs both processing and assembly facilities,
with large fulfilment centres throughout the U.S., UK, Canada and in other nations. The
company's main offerings have included a wide variety of cars and industrial parts, equipment
and machinery and are also involved in financial industries. It has its head office in Detroit and
was initiated under William Durant’s leadership in 1908, and originally only operates its
company in the European market. In 1929, this corporation had exceeded one international
company; i.e. Ford Motors Corporation is to become America's largest producer of passenger-
cars. GM also since incorporated its global operations such as UK Vauxhall in 1925, then
German's Adam Opel in 1929, then the Australian Holden in 1931. All these processes made
General Motors the country's greatest motor vehicle Production Company in 1931. By 1941,
GM produced 44% of all U.S. cars and reached the largest business corporations (Delic and
Eyers, 2020). GM Motors presently conducts its operations around 37 countries, including
Chevrolet, Buick, GMC and Cadillac, where the company's core branded vehicles. As well
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as GM’s vehicle sales has been managed to reach in terms of total revenue to its great
achievement to around millions per year.
According to the community for Motor producers and Traders, in the context of the UK
market, this country generates and over 1.5 million vehicles, commercial trucks which include 3
million motors, which accounts for 9 to 11 per cent of the overall export markets. This industry
also produces over £ 55bn in annual revenue, employing around 700,000 people, which provides
the economic system with nearly £ 12bn of net worth. It has enabled UK a major regional
competitor in the automobile industry worldwide, with a large boost from the firms running their
industries across the economy.
2. Market analysis of General Motors (GM)
General Motors produced a wide variety of cars ranging around US$ 10,000 to US$ 100,000
and also satisfy the demands of various market groups globally, from the medium and premium
class customers. Several of General Motors' top markets are GMC, Pontiac Cadillac, Chevrolet,
Hummer, GM Daewoo and Opel models etc. It was common also at turn of the 21st century that
this industry's ecosystem had to be maintained (Eiza, Cao and Xu, 2020). General Motors starts
production automobiles that are more ecologically responsible and innovative its manufacture by
creating vehicles that is bio-fuels, variant and fuel effective. After its founding, GM has grown to
market of trucks, motorcycles, and other vehicles throughout Europe, Asia-Pacific, Latin
America, the Middle East and more in upwards of 140 nations.
In 2008, this company sold more than 8.35 million cars and grew its share of the market in
industrialized as well as undeveloped countries. However as a growth of multinational
companies have functioned their companies in the automotive industry, such as Volkswagen,
BMW, Ferrari and much more, thereby enforcing General Motors to become more concerned
about innovations and offering targeted audiences strong-featured transport services to maintain
its dominant position (Barbier and et.al., 2019). Concentrating on identifying weaknesses, along
with the industries where its competition have beaten their position, this car manufacturers
concentrate is on the premium market in particular. It relates to a certain area in which
competing German car manufacturers have thrived to strengthen the Cadillac product line as well
as enlarge its business operations, particularly with regard to enhancing its operations and
maintenance market. This growth would include its scheduled establishment on huge rear-wheel
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