This research performs a competitive situation analysis for General Motors. The analysis is presented in four parts: (1) analysis of competitive forces; (2) competitor analysis; (3) expected competitive conditions; and (4) competitors to watch.
General Motors produces a wide variety of products. As automotive products account for 89 percent of the company's sales (Schlein, 1988b); however, this competitive analysis is concerned only with the company's automotive operations. Within the automotive industry, General Motors manufactures passenger cars, small trucks, large trucks, busses, and automotive parts and accessories (Schlein, 1988b). This competitive analysis is concerned only with passenger cars and small trucks.
Lastly, General Motors is a worldwide company. On the one hand, it has manufacturing and assembly operations in several regions of the world. On the other hand, its automotive products are distributed in world regions other than the regions in which they are produced. This competitive analysis is concerned only with the company's operations in the North American (Canada and the United States) market for passenger cars and small trucks.
The analysis of competitive forces considers five factors. These factors are (1) rivalry among industry competitors, (2) threat of industry entry, (3) competition from substitutes, (4) economic power of suppliers, and (5) economic power of customers.
Rivalry is exceptionally strong among the manufacturers competing in the North American automobile market. General Motors produces a wider spectrum of passenger cars than do any single one of its competitors. General Motors accounts for 51 percent of the output of domestic automotive manufacturers (Schlein, 1988b). In 1988, imports held a 29 percent market share (Schlein, 1988). Thus, General Motors held a 36.2 share of the total domestic passenger car market in 1988, which was, by far, the large...