Gm - Value Chain Analysis

A Basic GM Value Chain Analysis

A Value Chain Analysis describes the activities that take place within a business and then relates them to an analysis of the competitive strength of the business. Influential work by M. Porter suggests that the activities of a business could be grouped under two headings: 

(1) Primary Activities - those that are directly concerned with creating and delivering a product (e.g. Automobile Design and Manufacture); and 

(2) Support Activities, which while they are not directly involved in production, may increase effectiveness or efficiency (e.g. human resource management).

These would then be further categorized as in the Model shown below.

Steps in the Value Chain Analysis: 

Value chain analysis can be broken down into a three sequential steps: 

(1) Break down a market/organization into its key activities under each of the major headings in the model; 

(2) Assess the potential for adding value via cost advantage or differentiation, or identify current activities where a business appears to be at a competitive disadvantage; 

(3) Determine strategies built around focusing on activities where competitive advantage can be built and sustained.

General Motors Company LLC, or GM as that company is commonly called, is an American multi-national holding corporation headquartered in Detroit, Michigan that, through its subsidiaries, designs, manufactures, markets and distributes vehicles and vehicle parts and sells financial services. General Motors employs approx. 210,000 people and does business in over 150 countries. General Motors is divided into five business segments: GM North America (GMNA), GM Europe (GME), GM International Operations (GMIO), GM South America (GMSA), and GM Financial. General Motors produces vehicles in approx. 37 countries under thirteen brands including Chevrolet, Buick, GMC, Cadillac, Baojun, Holden, HSV, Isuzu, Jie Fang, Opel, Vauxhall, Daewoo, and Wuling. As well as ther company owns shares...