General Motors Porter’s 5 Five Forces (2021)


General Motors Company Overview:

General Motors Company, also known as GM or informally “American Motors,” is one of the world’s largest automobile manufacturers and the largest in the United States. It was founded in 1908 and has its headquarters in Detroit, Michigan. With global headquarters at the Renaissance Center in Downtown Detroit, GM employs approximately 202,000 people around the world. Below is the detailed Porter’s Five Forces Model of GM.

 

General Motors Competitive rivalry:

 

General Motors competes with foreign car manufacturers like Toyota and Volkswagen. Along with these companies, General Motors also has to compete with the American car company, Ford Motor Company. These four companies are in a cutthroat race for the highest sales each year. While General Motors’ business was not doing so well around 2012, it is now rising and becoming a threat to its competitors.

 

 

General Motors Bargaining power of suppliers:

 

General Motors’ strength is the lowest for supplies because they are at the top of their game, meaning there is no need for added costs if it does not need them. It has little to no bargaining power with suppliers or raw materials.

 

 

General Motors Bargaining power of buyers:

 

General Motors has medium bargaining power over buyers because they are a strong competitor in the automobile industry. They have to offer some incentives for customers to buy their products rather than Ford, Toyota, or Volkswagen’s. While this company is not as powerful as its competitors, it is still a threat that can be considered.

 

General Motors Threat of new entrants:

 

This company is at the top of its game and is not afraid of any new competition. A new business coming into this same industry is highly unlikely because it will be difficult for them to break through this strong competitor.

 

 

General Motors Threat of substitutes:

 

General Motors threat of substitutes: Companies like Ford, Toyota, and Volkswagen provide the same substitute products as General Motors. While these companies do have the same product, they each have a different market share. This means that customers may choose one over the other based on price or quality. General Motors has to make sure it offers a good product at a reasonable price to keep its market share.

 

General Motors Porter’s Five Forces Analysis Conclusion:

 

The strength of General Motors is medium compared to its four biggest competitors, Toyota, Volkswagen, Ford Motor Company and Hyundai. All of these companies have medium bargaining power over the other as well as the low threat from new entrants. While all of these companies are in a cutthroat race to be the highest selling cars, General Motors is still a force to be reckoned with and will continue to rise as one of the top competitors.

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