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emphasis on Chinese huge potential market.

4.3.3 Low interest rates

It is a opportunity that they can gain immediate revenue in sales.

4.3.4 Develop new vehicle styles and models

As you know the development of the vehicle model never be satisfied, GM should keep attempting the most popular model in 

the world.

4.4 Threats

4.4.1 Rising fuel prices

GM the major business pieces is the sales of truck and SUV, but it is gradually declined because of the lack of fuel 

efficiency, for rising fuel prices this reason,

4.4.2 Growth of competitors

Toyota gains the first mover advantage of hybrid system and become the leader of automotive industry, GM faces the reality 

they should develop more fuel efficiency vehicle and small car model.

4.4.3 Legacy cost

GM provide a great welfare to their retired employees, so they need to experience it is a serious financial problem more 

and more retired employees begin to be benefited.

企业面临的关键战略问题-5 Key strategic issues firm face

GM is facing several strategic issues. It will be shown by a number of aspects. The economic recession, Competition, and 

New entrants.

5.1 Economic Recession

The economy of world is currently in the downturn, or even recession in which will impact a lot of industries and 

consumers in the world. As the economy slowing down, doing business may find it hard to increase the revenue because banks 

are not willing to lend money to companies, especially bad credit status companies. As a result, GM may suffer from 

decrease in sales of automotives. However, they may benefit from hybrid technology, since more people are buying new fuel 

efficiency car model if consumer intend to purchase a new car.

5.2 Competitor in automotive industry

The competition between the main competitors for instance, Toyota, Honda, Ford, has expanded beyond that of the 

traditional energy car. These companies are now competing on value adding products, fuel efficiency, design and service of 

maintenance. In order to achieve competitive advantage companies try to merge or acquire other companies in gain 

experience and knowledge.

5.3 New entrants

The fast moving and constantly changing industry gives opportunities to new entrants who have not previously specialized 

in the automotive market as technology can often be easily imitated. In addition an alliance formed by different 

companies, such as Magna and Sberbank, trying to seek a takeover of Opel and Vauxhall, parts of GM European division. 

There has also a growing number of new entrants in China due to relatively low investment costs.

战略选择-6 Strategic Options

The strategic options that GM might realistically pursue had been discussed as below such as product development, market 

development,, and market penetration as their strategic options. (Ansoff, 1987)

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