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Running Head: GENERAL MOTORS
General Motors is considered to be one of the United States significant organizations
which make it a great American icon. As such, it is one of the organizations that I would like to
work for in the future. The organization has its headquarters in Detroit and is involved in the
designing, manufacturing, marketing and distributing vehicle and vehicle parts. It was founded
back in 1908 by William C. Durant and currently is one of the United States biggest car
manufacturers. Some of its notable brands may include; Chevrolet, GMC, Cadillac, and Buick.
These brands have played a significant part in the building of the country and are beloved by
many Americans and even foreigners. As of 2016, the organization achieved a milestone of
selling over 10 million cars worldwide.
GM has a strategy that could be referred to as generic. GM utilizes growth platform
strategies which aim at increasing revenues and profits through the use of vertical integration.
The move requires entry into new markets and rolling out new competitive products through
innovation and methods such as acquisitions and mergers. GM utilizes this strategy through the
production of high-quality vehicles that are unrivaled in the market. Also, GM collaborates with
other market leaders to come up with products that are unique and have high performances as
compared to others. Some of the recommendations that can be made to the organization are that
it needs to diversify its products. The competition in the automotive industry is ever increasing
and could pose many threats to GM. Another recommendation would be to start the production
of electric vehicles whose demand has increased over the past years. More and more clients are
looking for efficient vehicles which have no impact on the environment at all.
General Analysis of Corporate Strategy
General Motors has a generic strategy through which the organization is able to gain and
retain a competitive advantage despite the ever-increasing competition in the automotive
manufacturing industry. The organization puts a lot of emphasis on the economics of scale which
refers to the reduction of costs per unit which arise from increased output of total products. The
organization further employs other growth strategies to remain competitive such as mergers,
acquisitions, and collaborations. The effectiveness of the company's growths strategy lies behind
the ability to address issues that relate to competition and rivalry in the market.
Furthermore, the corporate strategy that the company uses can be identified as vertical
integration. Vertical integration occurs when an organization controls more than one stage of its
entire supply chain. As stated earlier, the organization is involved in the production, marketing,
and distribution of its products. For instance, the organization acquired Strobe which is a sensor
manufacturing startup. This means that the organization will produce sensors for its laser-based
cars. The organization believes that the move will enable it to develop autonomous cars and
remain competitive in the near future (Bhuiyan, 2017). Such a move allows organizations to
control a larger portion of their production process which will place it in a good position in the
Some of the advantages of this strategy are that there is less or no reliance on suppliers at
all, lowers costs, economies of scale and gaining the most popular brand names. On the other
hand, there may be disadvantages such as high costs, loss of focus and complicated culture that
may not be able to support both retail and factories. However, the advantages may outweigh the
disadvantages since the organization is in control of its most significant areas. It further supports
innovation which is easier since all the products are made under one roof making it easier to test
and come with proper systems that can support either of the processes.
The organization utilizes cost ...