General Motors Case Analysis

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On June 1st 2009, General Motors entered bankruptcy protection and has been fighting there way back ever since. In November of 2010, they sold a portion of their stock holdings and bought them all back by the end of 2012 allowing the company greater financial flexibility (General Motors, 2016). General Motors has reduced their fixed costs since the 2008 bankruptcy and had a net income of $5 billion in 2010 and $8 million in 2011 (Noe, 2015). In 2015 17.4 million vehicles were sold in the U.S. and 9.8 million of those were cars and trucks manufactured by General Motors (Automotive Industry Spotlight, 2016). General Motors beat all the estimates for quarter 2 of 2016 with a 44% jump in adjusted earnings, a revenue of $42.4 billion, and earnings …show more content…

The company must continuously keep up with automobile trends, new technology, and government and safety demands. According to General Motor’s SWOT Analysis provided by MarketLine, the company’s “robust technological capabilities enhances new product development,” ( Marketline, Pg. 32). The SWOT Analysis also outlines a company opportunity for the advancement of hybrid electric and alternate fuel vehicles (Marketline, Pg. 32). GM has strong capabilities for new product designs and research and development. The company has spent nearly $15 billion on research and development activities in the last two years with the focus of developing new products and services, improving existing products and services, and improving fuel economy and safety of vehicles (Marketline, Pg. 33). The company’s top innovation priorities lie in development and advancement of alternative propulsion strategies, fuel efficiency. They now offer the FlexFuel vehicle that can run on gasoline-ethanol blend fuels as well as electric cars and hybrid cars (Marketline, Pg. 34). General Motors maintains its spot as an industry leader of innovation and development, which in turn gives it a strong competitive

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