Nonetheless, results to increase in company’s core brand dilution.

Nonetheless, in comparison to key competitors, likeFord’s, its’ revenue was 55.5% in the US market while Toyota received 41.

9%from Japan. The fact is that majority of GM revenues is generated from the US,however, economic change, demand and reputation may pose a weakness to GM.   Chart 1: GM’s country by country revenue (Jurevicius, 2016) 2. Brand AwarenessResearch argue that, huge brand portfolio results toincrease in company’s core brand dilution. In addition, GM uses other brandsnames and not its own company name. Consequently, Toyota, Mercedes-Benz, BMW,Honda, Ford, Hyundai, Volkswagen, Nissan, Porsche, Kia, Land Rover, Mini, andTesla, out rank GM in brand recognition, despite being the 2nd the largest automanufacturer in the world (Interbrand, 2016).  3. Reliance on Pickuptrucks and SUV’s for ProfitsResearch shows that GM heavily rely on SUVs and pickups astheir main source of profits.

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Despite a balanced brand portfolio e.g. thesmall, mid-size and large cars, crossovers, SUVs and trucks, the US market islargely influenced by only two brands. The GMs success of high profits marginsis attributed to the popularity of SUVs and Trucks. As-a-result, relatedstudies indicate the popularity in the US of these two segments have caused agrowing segments of GM brand in the whole of the automotive market. Therefore,due to the consumers’ preference in these vehicles, which is due to low petrolprices.  Consequently, the dependency onthese two factors are always bound to change (General Motors, 2016). Opportunities Low fuel prices are increasing the demand for pickup trucks and SUVsRelated studies imply that for the last decade the trendin fuel prices are likely to remain low, as a result, encouraging customers tobuy big fuel-efficient vehicles such as the SUVs and pickup trucks.

Moreover,an opportunity that GM can maximise in this growing market for these vehiclestranslating this growth to profits (Jurevicius, 2016).   2. Timing andFrequency of the new Model releasesRelated studies in the history of automobile industry,upgrading of car brand and new model car release is normally done every 4 or 5years.

Therefore, timing and frequency of new models is significant. However,the in-car technology and competitiveness of the automotive industry, hasincreased pressure due to raising of customers’ expectations have urged the carmanufacturers to upgrade the auto models frequently. Interestingly, GM iscapable to produce and exceed these expectations due to its’ position (Jurevicius,2016). 3. Anincrease in the demand for autonomous vehiclesRelated studies imply, that the current trend is towardsautonomous vehicles.

In fact, GM has been busy purchasing and acquiringself-driving technology start-ups and patents, so that it works and plan tointroduces autonomous vehicles launch by 2020. Moreover, the sophisticatedtechnology of GM acquired through, the OnStar assistance has established atransitioning path to driverless cars. Threats1. IncreasedcompetitionResearchers argue that GM competitors have been on therise in home markets, new players with innovative products like google, andTesla as well as the traditional automotive companies.

More competition inChinese market has been increasing of the local Chinese manufacturers who havealternative lower price with similar standards quality build vehicles.Additionally, electric and autonomous driving technology are innovations thatcompete directly against GM and a threat to traditional automotive industry.Moreover, research emphasised that, in 2015 there was production of vehicles of31 million in excess, which was as a result of, competition, increased globalautomotive production capacity far exceeded demand (Jurevicius, 2016). 2. Cases ofFluctuation of US currency due to the rising dollar exchange rateResearchers argue that currencies can be volatile andinternational companies like GM, are predisposed to it. Therefore, company’sprofits and revenue are highly depended on the fluctuation of exchange rates.This implies that any changes in the currency in this case US dollar, GMprofits and revenues will be significantly influenced, for examples, in casesof US dollar exchange rate rise.

  Infact, 37% of GM revenue is from global market, thus, during dollar conversionand fluctuation of the dollars there would be an impact on the GM’ profits andrevenues (Jurevicius,2016). 3. Increasinggovernment regulations may raise the costsRelated studies argue that, there has been increase in thesensitivity and commitment to reducing of greenhouses gas emission and findingalternatives to fuel efficiency initiatives. The downside aspect of suchinitiatives may increase production costs in automobile production.Consequently, such cost are high posing challenges such as high competition andprice-sensitive marker to recoup (Jurevicius, 2016). 4.

U.S. automotivemarket is poised to slow down or even declineResearchers argue that, due to the saturated markets, theautomotive market growth in the US is declining. In addition, an emphasisthrough a research done by Ford and GM indicate for a fact, that the sale ofnew cars in the US market is declining continually. Despite the goodperformance of the automotive industry in the 2015 and 2016 whereby new carsales increased on average of 6% in each these two past years, since the worstcase scenarios since 2007 (Pugliano, 2016).