Introduction
General Motors is one of the companies in the automotive industry, which has been quite relevant and competitive since its establishment. Porter’s Five Force happens to address the most significant aspects of competition companies should put their focus on to achieve their objectives.
Application of Porter’s Five Force by General Motors
General Motor’s competitive rivalry success in the automotive industry is as a result of the application of Porter’s Five Force. Due to the intensity of competition in the automotive sector, General Motors has enhanced a strategic competitive rivalry following Porter’s Five Force leading to their competitive success. General Motors are always considerate of their bargaining power and that of their customers. In the same regard, the company tries to be fair to the bargaining power of the suppliers.
The bargaining power of General Motor, which is the company in question and that of the suppliers, are other aspects that are of great importance in Porter’s Five Force. Treat of substitute and threat of entrant are yet other aspects of the five Porter’s Five Force, which General Motors have put into their strategic plans. General Motors have ensured a considerable strategic plan on the substitute to provide their customers do not think of shifting at any point.
Conclusion
To sum up, I may tell that the strategic use of Potter’s Five Force has helped General Motors to address the Relevant issues to remain competitive success in the industry.