Topic > General Motors Case Study 2013 - 706

General Motors Company is one of the largest automobile manufacturers in the world, headquartered in the United States. After a few years of financial difficulties, on November 18, 2010, the General Motors (GM) company announced the beginning of a new chapter in its history; a chapter that envisaged the emergence of a solid financial foundation within the company. According to GM's home page, the strong financial future would allow the company to produce great vehicles for its customers and build a bright future for its employees, partners, and shareholders ("General Motors," n.d.). Despite the company's optimism, some investors prefer to evaluate the effect of competitive forces on GM's healthy profitability before investing. Impressively, when the company is compared to other competitors in the market, its performance is slightly above the industry average, even though quarterly revenue growth is slightly negative, as illustrated by Yahoo's recent financial report. Although GM faces stiff competition within the industry, it has risen to the challenge by introducing gas-efficient cars into its production line, as well as improving the company's image and customer service, to name a few . Nonetheless, the company's profits and market share are reduced by the durability of some of its competitors' products (“General The strategy used by consumers to obtain extra profits from GM dealers is effective because of the availability of substitute products and services all 'internal Interestingly, the action of the individual buyer during a transaction at a dealership affects that particular dealership, however, the consumer's action poses a strong indirect threat to the GM. This is because there are many individual consumers who bargain and profit may decline to the point where dealers may not be able to sustain their operations (Aref,