Gm Case Study

Topics: Automobile, General Motors, Renault Pages: 2 (687 words) Published: June 6, 2013
1. What are key forces in the general and industry environments that affect the U.S. auto industry, and General Motors?

Political-Legal—The United States government (and governments around the world) enacts laws and regulations regarding vehicle safety and reliability, as well as fuel emission limits, thereby giving GM (and other auto dealers/automakers) the opportunity to spread the word that these vehicles are indeed safe, dependable, and beneficial to the environment. Economic—Day in and day out, we contribute to our economy by making a wide variety of purchases, from groceries to clothing to automobiles. Huge sales of expensive items (such as cars) may signal an economic boom. So auto firms such as GM need to take into account the current (and future) condition of the economy when marketing its vehicles. Demographic—In my opinion, adults take driving more seriously than do teenagers, so adults are more likely than teenagers to obtain a driver’s license and, in turn, their own car(s). Since GM is always concerned about everyone’s safety on the road, it needs to offer vehicles that meet today’s safety standards. In addition, as the characteristics of the world’s population continue to change constantly every day, GM should respond favorably by providing an automobile that is not only convenient, but also fits each person’s needs and daily lifestyles. Sociocultural—To combat global warming and satisfy people’s preferences for a “greener” Earth, auto firms have focused on producing environmentally-friendly vehicles such as hybrids (which run on electrical power). Technological—Advances in technology have allowed GM to include gadgets such as OnStar, GPS, and satellite radio in its vehicles. Innovations such as these enhance autos’ overall quality (safety and performance). Global—Due to events in the Middle East resulting in gas price fluctuations, GM is trying to

emphasize selling vehicles that are fuel-efficient (use more miles per gallon than...
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