General Motors

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.

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successes achieved by Chrysler and Ford reelected the practice of those firms in contracting for component production in lowercost foreign markets, while General Motors continued to rely heavily on domestic production. In the lasthalf of 1988, General Motors, with the help of achieved efficiencies in its automated operations, turned the situation around (Schlein, 1988b). Both Ford and Chrysler were also gaining at the expense of General Motors through styling and marketing. Again, however, the introduction of General Motors' 1989 line in September 1988 tended to reverse the situation. In the domestic market, General Motors accounts for 51 percent of output, while Ford Motor accounts for 20.2 percent, and Chrysler accounts for 15.6 percent, leaving 86.8 percent for all others (Schlein, 1988a; Leach, 1988; Schlein, 1988b). Honda is the strongest domestic competitor for General Motors, following Ford Motor, and Chrysler. Honda Motor Company is a major automobile producer, which markets its vehicles on a worldwide basis (Ozaroff, 1988). In addition, the company is the world's largest manufacturer of motorcycles. Automobiles account for 71 percent of company sales, while automobile parts account for 19 percen
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Approximate Word count = 1586
Approximate Pages = 6 (250 words per page)

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