Competitive Intelligence and Benchmarking

Kenneth Liggayu

Supply Chain Analytics Essentials with Professor Yao Zhao

Rutgers Business School

General Motors Company

• One of the largest automotive manufacturers in the world. Founded in 1908 and headquartered in Detroit, Michigan. GM designs, manufactures, and sells vehicles under brands known as Chevrolet, GMC, Cadillac, and Buick.

• Operates globally with manufacturing facilities in North America, South America, China, and other international markets. GM produces millions of vehicles annually, and employs approximately 165,000 people worldwide.

• GM has strong market leadership in North America, especially in trucks and SUVs, which are the most profitable segments of the automotive industry.

• Going through a transformation towards electric vehicles (EVs), expanding to compete with Tesla and other EV manufacturers. 

An industry analysis: General Motors Company

• Industry trend analysis

• Concentration and competition intensity

• Value chain analysis

• Automobile Industry

Industry Analysis

Concentration and Competition Intensity

How concentrated is the industry? 

Concentration and Competition Intensity Summary

• The automotive manufacturing industry shows large scale growth and strong revenue growth potential, but profitability remains highly cyclical due to capital intensity, supply chain disruptions, and other technical transitions. 

• Industry revenue decline slightly between 2016 and 2020, but has increased significantly since 2021, reaching its highest level in 2024, showing pandemic related recovery and increased global demand for vehicles

• Despite overall revenue growth, the proportion of profitable enterprises declined from around 65% in 2016 to 25-25% in the most recent years. This shows competitive pressure and rising operational costs, while displays that although leaders in automotive are still growing, many firms struggle to be consistently profitable.

• The industry is highly concentrated. There are a few dominant firms including GM, Ford, and Tesla which account for most of the revenue. The four-firm concentration ratio remains near maximum levels, indicating a highly consolidated industry with significant barriers to entry due to capital requirements, manufacturing complexity, and brand dominance. 

• The automotive industry's long-term growth outlook looks strong because of rising global demand and technological innovation especially with the rise EVs. However, high capital requirements, intense competition, and operational inefficiencies create significant risk and financial pressure for established auto manufacturers. This makes cost efficiency, innovation, and supply chain optimization critical for competitive advantage.

Industry Analysis

Trend Analysis
The potential and risk of the industry

Industrial Risk

• Subject-list one

• Subject-list two

• Subject-list three

Industry Risk: Summary

• Subject-list one

• Subject-list two

• Subject-list three

Industry Analysis

Value Chain and Industry Comparison

Expand or stay focused?

Value Chain and Industry Comparison: Summary

• Subject-list one

• Subject-list two

• Subject-list three

Competitive Positioning

Profit Comparison

Where do I stand in the competition landscape?

Competitive Positioning

• Rank compared to competitors

Ranking and KPI Examination: Summary

• Subject-list one

• Subject-list two

• Subject-list three

Enterprise Diagnosis

Strengths and Weaknesses

Major Competitors to General Motors

• Ford Motor Company

• Tesla

• Stellantis (NA)

Enterprise Diagnosis

Company Trend

• Subject-list one

• Subject-list two

• Subject-list three

Strengths and Weaknesses: Summary

• Strengths:

  • GM's primary strength is its massive scale, with the highest total revenue, giving it financial flexibility
  • GM demonstrates relatively stable profit before tax and net income
  • Maintains steady long-term growth in revenue and operating income, showing its ability to recover from economic and supply chain downturns
• Weaknesses:
  • Although it has a massive scale, it underperforms in metrics such as operating margin, net margin, and ROA
  • It has slower and less aggressive profit compared to Tesla, showing its lag in innovation and reliance on older business models.
  • It has reduced financial efficiency because of its large asset base and cost-heavy structure, also making it less agile and less competitive compared to growing and efficient companies such as Tesla.

Value Driver Analysis

Performance Drivers

• Subject-list one

• Subject-list two

• Subject-list three

Breakdown Analysis

Root Causes

Summary

• Cause 1: Extremely high COGS burdens. This limits profit expansion, its cost of goods increases nearly 100% of revenue, leaving minimal room for improvement, and showing its structural inefficiency.
• Cause 2: High operational and overhead expenses further compress returns. Operating costs and a capital-intensive manufacturing structure reduce its operating efficiency compared to competitors, such as Tesla. 
• Its main weakness is not its revenue, but its inefficient cost structure. Its traditional model in manufacturing reveals thinner margins, lower return efficiency, and weaker profitability.