General motors external environment analysis

In the wake of environmental conservation, different governments in Europe, Canada and the USA are certifying car manufactures in terms of production of environmentally-friendly vehicles.

Scanning the external environment for trends and permanent changes is vital for the long-term success of a firm, especially within a volatile and competitive industry like automotives. The company has to take bold steps to conquer new markets.

pestel analysis of automobile industry pdf

This means that the customers purchase only the things which are economical and are of absolute importance. A large number of brands are competing for market share and customer base in the market. Stable political environment also leads to better economic activity and higher employment.

Through this, GM has established a core competency in terms of state-of-the-art safety technology.

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Several of the newly released models from the house of GM are more fuel efficient. Moreover, the political environment of a nation directly corresponds with the economic environment of the country. Best Global Brands. Therefore, we have concluded that the American auto manufacturers did not successfully examine their external environment.

Global warming occurs due to the pollution created by vehicles that is directly related to the amount of fuel they burn. The new protocols imposed by the Fiscal Policy Institute PI resulted in a hike on the organization by the government which resulted in the increase of selling prices, thus making the vehicle out of reach of purchase.

That was a major shock for the brand. Comprehensive turn-based navigation.

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General Motors External Environment Essays