strategic planning tutorial

8/6/2019 Strategic Planning Tutorial

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PresenterSyndicate 54Gareth Evans


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1. discusses the main technique used to analyze competitionin an industry the five forces model

2. describes the concept of strategic groups and implicationsfor industry analysis

3. discusses how industries evolve over time, with reference

to the industry life cycle model 4. shows how trends in the macro-environment can shape

the nature of competition in an industry.


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General Motors Company is one of the worlds largestauto makers and traces its roots back to 1908.

With its global headquarters in Detroit, GM employs209,000 people in every major region of the worldand does business in more than 120 countries.

GM and its strategic partners produce cars and trucksin 31 countries, and sell and service these vehiclesthrough the following brands: Buick, Cadillac,Chevrolet, GMC, Daewoo, Holden, Isuzu, Jiefang,Opel, Vauxhall and Wuling.

GMs largest national market is China, followed bythe United States, Brazil, the United Kingdom,Germany, Canada and Russia


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1. Apply the five forces model to the industry in which yourcompany is based. What does this model tell you about the natureof competition in the industry?

2. Are any changes taking place in the macro-environment thatmight have an impact, positive or negative, on the industry in

which your company is based? If so, what are these changes, andhow might they affect the industry?

3. Identify any strategic groups that might exist in the industry.How does the intensity of competition differ across these strategicgroups?

4. In what stage of its life cycle is the industry in which your

company is based? What are the implications of this for theintensity of competition both now and in the future?


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1. What is the most popular new vehicle inAustralia in 2010/11?

What is its % market share?

What is the second most popular vehicle? Market Share? How many European cars in the top 8

models? Name them.


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Aust. Vehicle sales (no.)

2010 78 267 2011 77 424 Change from previous year (%) Trend -9.7%

Seasonally Adjusted11.5 %


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SALES BY TYPE OF VEHICLE

Trend - When comparing national trendestimates for June 2011 with May 2011,sales of Passenger, Sports utility and Othervehicles decreased by 1.4%, 1.6% and 2.1%respectively.


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1990 14 Million 2000 17.8Million 2004 17.2 Million 2006 17 Million

2007 16.5 Million 2008 13.4 million 2009 10.6 Million 2011 ?? Note this includes increases in cheaper builds in

China and India.


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Competition is intense and getting strongerwith break up of industry in SUV, saloon andhybrid vehicles and emerging Asian models.

Environmental damage is considered amajor risk to industry expansion.

Oil shortages and the increase in petrolprices

Search for clean vehicles Decline in Fleet markets during recessions


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Truck, SUV and family cars. competition equally balanced across

industry


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Western vehicle market is about to enterdecline stage from mature Industry( saturation) and as extrernal environmentalpressures increase e.g national economicstagnation, emerging producers servingown markets in India and China.


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Hill and Jones (2010) GM website Australian Bureau of Statistics ( ABS)(2011)

US Census Bureau Abstract (2011) Australian Financial Review 04/08/11

strategic planning tutorial

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