Gm Analysis

General Motors Company (GM), the multinational company, was founded in 1908 which included Buick Motor Company and Olds Motor Works. GM was established a testing and research laboratory in 1911 in case to serve its constituent companies. It helps GM continually growth in the worldwide in later years. “A car for every purse and purpose”, the long-standing strategy for GM was written by the president, Alfred P. Sloan, in 1923.

GM owned 23% of the worldwide automobile market shares in 2000. GM sales a large volume of automobile in U.S. market compared to other regions. GM stated to erode form the threats of foreign competitors, but it still be the world largest carmaker in 2002. Since the U.S. market had become matured, GM started to innovate and develop.

GM as the leader of the sales automobile in the mature U.S. market, therefore, GM should find alternative ways to exist in future. GM faces a disruptive technology changes which often cause to failure according to Clayton Christensen said in his book. GM faces big challenges for the innovation in terms of the mature market, but GM was not uncertainty for designing their own hydrogen fuel cell technology.

II. External analysis

A. Societal Environmental

a. Economic

The automobile had becoming the most important transportation in everyone’s life. The gas pollution was heavily destroyed the ozone layer and caused global warming in the earth. In addition, the globalization and increased competition had increase the worldwide scale of economies and force the technology changes quickly in order to compete internationally.

b. Technological

The incremental innovations were more commonly introduced in lower-priced, higher-volume product lines. (Utterback, J., P36) Due to the incremental innovations, the rate of major innovation began to decline. The major competitor of GM, Toyota, spent huge amount money on R&D with the proactive in alternative technologies. For example, Toyota had spent $3.6 billion on...