Question

The company is General Motors(GM). Give an external and internal analysis: identify who the suppliers, buyers, competitors, potential entrants, substitutes, and complimentors to the company. Also, include information about the company’s value chain activities.

Answer 1

Internal and external analysis of General Motors

Suppliers

The automobile companies generally derive the raw materials from several local suppliers. A dominant supplier can be adversely effective on the decrease of the marketing base of General Motors Company. The powerful suppliers may use high price while negotiating with the auto manufacturers. General motor can tackle their suppliers by

• Developing an effective supply chain with the suppliers
• Experimenting the product design
• Identifying dedicated suppliers who can accomplish the general requirement of the organization

Buyers:

The buyers always prefer to avail the best product at a low price. It is important for General Motors to address the bargain capability of the buyers with the effective implementation of marketing analysis. General motors can tackle the capabilities of buyers by

• Enhancing the target customer base
• Bringing innovativeness in the product design
• Reducing defection from the existing products

Competitors

An intense rivalry among the market competitors may lead the organization to decrease the price and the amount of profitability. The General motors tackle its competitors by

• Developing a steady differentiation
• Developing effective marketing scale to stay ahead of the competitors
• Partnering most of the competitors to reduce market threats

Potential entrants

The potential entrants having major innovativeness and product diversification can be the potential threats for the business organizations General Motors tackle the potential entrants by

• Bringing more innovativeness to product design
• Developing an effective economic scale which can reduce the amount of fixed cost
• Building marketing capacity for the employees following the dynamics of the industry

Substitutes

The substitutional threats arise when a new product replaces the previous services with its quality and low price. General motors can handle the substitutes by

• Developing a service-oriented approach
• Understanding the needs of the consumers
• Increasing service switching costs for the consumers

Complementors

The target consumers are the complements of the product. The consumers have accepted products of General motors due to its quality, low price, low service charge, and dignified organizational behavior.

Value chain activities

The value chain analysis uses to add value to the products and services of the organizations. The value chain activities of General Motors are

• The employment responsibility
• technically sound workers
• Extraordinary outsourcing activities have added value to the activities of General Motors.
• Emphasizing on the customer relationship and provides emergency customer support.