General Motors - External Environmental Analysis Assignment

habitual Motors - External Environmental Analysis - Assignment ExampleThe auto industry has always been vulnerable to stinting fluctuations, and with the volatility of fuel prices growing by the day, GM and other companies are always facing hard-bitten times. This is despite the firms huge financial resources.GM has a sound strategic core. This is evidence by its huge turnaround since its bankruptcy in 2009. The company has hired highly skilled managers with affluent strategic experience and knowledge of strategic management to guide its corporate development (Lewandowski, 2014).As hotshot of the largest automakers in the world, GM is resource-rich in terms of tangible (hardware and facilities) and intangible (liquid cash). These resources are used to drive its elaboration and support its new innovative orientation (Lewandowski, 2014).GM is yet to expand its network to emerging markets and innovative economies in Europe, Africa, and Eastern Europe. The company has opportunities to invest in new markets and maintain profitability (Lewandowski, 2014). The electric/ crossbreeding segment also has endless opportunities created by consumers new inclination towards green energy.The threat of new entrants is blue to moderate. Factors such as research and development (R&D) costs, economic instability, competition, and inflation make it extremely difficult for likely entrants to successfully venture into the industry.Rising fuel prices, coupled with economic instability, has signaled a shift to electric and hybridization cars. GM has been forced to embrace electric/hybrid cars in order to avoid losing market manage to other firms. Consumers have started viewing electric/hybrid cars as viable alternatives to wasteful and environmentally incompatible gas automobiles. The threat of substitutes is moderate to high.Buyers have moderate to high bargaining power, especially because of new regulations and a greater variety to choose from. In the US