General Motors

Prepared for:
Business Cluster Professors

Prepared by: Team 7 Anthony Allio Joseph Allio Lauren Snitcher Nicholai Larroque Gregory Armamdo

June 10, 2005

Table OF CONTENTS

Introduction 4

Region Analysis 4

North America- GMNA 4 Europe- GME 4 Latin America- GMLAAM 5 Asia/Pacific- GMAP 5

Porters Five Forces 6

Rivalry 6 Barriers to Entry 6 Threat of Substitutes 7 Power of Suppliers 7 Power of Buyers 8

Competitive Advantage 9

Internal Analysis 10

Internal Strengths 10 GMAC’s Continued Earnings Growth 10 Marketing Strategy/Consolidation 10 GM LAAM/ GM Asia Pacific 10 Internal Weaknesses 11 Rising Health Care Costs 11 Weak Product Mix 11 Lack of Flexibility 11

Strategy 12

Retrenchment Strategy: Product Redevelopment 12

Overlapping models 12 Reinvention 13

Appendix 18

Introduction

General Motors is a company that has been around for over one century and has been an integral member of the automotive industry since its inception. To understand General Motors one must simply look at their business philosophy which guides them today, and is embodied in the companies’ culture: product excellence and customer focus, act as one company, and move with a sense of urgency. Throughout this analysis of General Motors we have provided an in depth look at these philosophies, while in the end developing a future strategy for General Motors to implement in restructuring the company.

There are four markets GM operates in with regards to automotive sales: North America, Europe, Latin America, and Asia Pacific. After analyzing these four markets we have decided to focus most of our attention to the North American automotive segment due to the nature of sales and income in regards to its relative relationship to North America and the importance it