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Chevrolet Swot Analysis

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Category: Business

Autor: anton 24 November 2010

Words: 514 | Pages: 3

Strengths:

• Name recognition- The name Chevrolet is the most recognizable auto manufacturer in the United States.

• Company image- Chevrolet’s image is that of tough, dependable, long lasting vehicles. Its “Like a Rock” advertising campaign equated Chevrolet trucks with cowboys, ranchers, and construction workers in an attempt to paint an All-American appeal for these vehicles. Its newest slogan “Chevy, the longest lasting cars on the road,” continues the company image of producing durable products.

• Product diversity- Chevrolet features many different products for many different target groups. It has five divisions of vehicles: cars, trucks, sport utility vehicles, vans, and commercial vehicles. Because of its diversity it can market its products to almost any target group. It produces a 145 hp Cobalt for under $15,000 as well as a 505 hp Corvette for over $65,000.

• Racing Sponsor- One of Chevrolet’s biggest marketing assets is its five racing teams: NASCAR Nextel Cup Series, NASCAR Craftsman Truck Series, Indy Car Series, American Le Mans Series, and NHRA Drag Racing. These events provide Chevrolet with a unique opportunity to prove to consumers that its products are superior to competitors on an even scale.

Weaknesses

• No luxury vehicle- Chevrolet does not feature, and has no intent to feature any type of luxury vehicle. Without this they cannot compete with foreign manufacturers. Even Ford and Chrysler have developed a luxury vehicle for their fleets.

• Weak in horse power- Besides the Corvette, all Chevrolet vehicles are substandard to their foreign competition when comparing horse power. The Chevrolet Impala features a 185 hp engine, while the Honda Accord, its direct competitor, boasts a 240 hp engine.

• Dull product design- Once again, with exception to the Corvette, Chevrolet vehicles have a very conventional and boring design. This hurts the company drastically because people are always looking for a sleeker, more aggressive looking vehicle, Chevrolet vehicles lack the curves and aesthetics that foreign manufacturers pride themselves on.

Opportunities

• Hybrid Technology- Hybrid technology is no longer something of the future, it is current and available to all auto manufacturers. Chevrolet has the chance to develop fuel efficient hybrid vehicles that people will actually want to drive.

Threats

• Fuel prices- Rising gas prices are creating a problem for the sales of sport utility vehicles, and all cars in general. SUVs, especially ones featuring large block engines, consume much more gas than normal cars. With oil prices rising back up to $70 a barrel Chevrolet could see a decline in overall sales in the future.

• 2007 Diesel Fuel Regulation Act- In 2007 new standards for the production of efficient diesel engines will come into effect. Chevrolet must spend 2006 researching and developing new engines that will meet the government’s standards.

• Foreign competition on US soil- recently many overseas competitors such as Toyota, Honda, and Nissan have began building plants in the United States to cut down on overseas shipping costs and to directly compete with American companies in the same production market

Edmunds.com, Inc. 2006 http://www.edmunds.com/new/chevrolet/index.html (Accessed 6 February 2006)

General Motors Corporation, 2006. http://www.chevrolet.com (Accessed 6 February 2006)

Yahoo! Finance, 2006. http://finance.yahoo.com/q?s=GM (Accessed 6 February 2006)

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