Free Essay: PESTEL Analysis of General Motors

Free Essay: PESTEL Analysis of General Motors

General Motors Company [GM] is a highly reputed American Multinational Corporation that designs, manufactures, and markets and distributes vehicles parts and quality vehicles. It has its headquarters in Detroit Michigan and it traces its roots back to 1908. General Motors has been able to identify the many benefits that this industry presents and has been able to utilize available opportunities. GM has gone on to meet the needs of millions of clients globally thanks to its reliance on and study of the PESTLE forces.

The rise of many other automakers like Toyota, Nissan and Honda among others has pushed GM over the years to come up with great strategies on how to meet the large market out there. Succeeding in the automobile industry in the tough economic times has not been easy for General Motors and its competitors. A great PESTLE analysis of the General Motors will present great strategies and decisions made by the company. Evidently, below are PESTLE factors that make it easy to understand and learn more about the second largest automaker in the world.

  • Political factors- Laws and governmental factors have impacted the automobile industry since 1960s. Most of the regulations are derived from consumers ever increasing concerns for the surrounding environment and safer high-quality automobiles. The many clients in the automobile industry have set new demands and new set of trends that have pushed all companies to produce quality vehicles that abide to transport and safety rules.
  • Economic factors– The automobile industry has great influence in every country’s economy. This industry is the biggest user of aluminum, copper, iron, steel, rubber, computer chips and vinyl among other materials; hence a lot of revenue is obtained from sail of all these products. The industry also creates a lot of jobs for the large populations.
  • Social factors– In today’s society, people are judged by the vehicles that they drive. Every person wants to drive a quality, lavish and attractive vehicle. GM understands clients preferences and produce vehicles that will meet their needs and requirements regardless of their prices.
  • Technological factors– The advent of internet has impacted every industry globally and it has great influence on the automobile industry. General Motors has websites where clients can access information on available products and automobile services. making inquiries has become easy regardless of one’s location.
  • Environmental factors– GM like any other company in the automobile industry faces a couple of challenges on the account of environment protection and conservation.
  • Legal factors– A lot of laws and regulations have been imposed on the automobile industry. ELV endorsement in the industry by Automobile Recycling Law is one of the core regulations that the market as to abide to.

General Motors is a reputed automobile brand that satisfies the needs of many clients. Through the PESTLE analysis, it has been able to develop and create new technologies in accord to its agenda and clients need. It has taken great steps to triumph over its competitors and new markets. In a sense, it has remodeled its ideas for better products and services in the new markets.

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