Toys R US Marketing Plan
General Motors Company is a global vehicle manufacturing based in Detroit, USA. It boasts of its operations in more than 150 countries and more than 10 vehicle brand models in 35 countries across the globe. These features make the company rich in income and in asset. Currently, General Motors employs 212,000 people in its operations in its branches across the globe.
Besides motor vehicle manufacturing, the company offers consumer banking and vehicle financing services as well as housing mortgages. These services helps he company to supplement a great deal on its revenue in its effort to complete in international business arena. General Motors has also been growing since the year 2010 and it has registered high revenue returns based on high vehicle brand sales and more specifically the Chevrolet vehicle brand.
The success rate of the company is attributed to its mission to produce high quality products. It also has competent professionals and high profitability to the company’s stakeholders. The General Motors 2010 annual report says
‘‘The new General Motors has one clear vision: to design, build and sell the world’s best vehicles. Our new business model revolves around this vision, focusing on fewer brands, compelling vehicle design, innovative technology, and improved manufacturing productivity and streamlined, more efficient inventory processes. The end result is products that delight customers and generate higher volumes and margins- and ultimately deliver more cash to invest in our future vehicles.’’ (General Motors, 2010 Annual Report, 2010).
General Motors focuses on technology as a way of satisfying tastes and preferences of its clients to become a leading motor vehicle company with high brand visibility or coverage in the global market based on its annual income of $9.2 billion annually.
General Motors has three major competitors in the market and they are Honda, Nissan and Ford motor companies. These are companies with a wide range of motor brands selling greatly across the global market.
Nissan Company is a major automobile manufacturing company based in Japan and it competes globally with General Motors. The main goal of the company is to produce automobiles that are environmentally friendly for example its latest Nissan leaf electric car. It has more than 156,000 staff members in its branches across the globe.
It is also a global company that generates revenue of $116.16 billion per year and profit of $4.13 billion (Nissan, 2012). The company’s mission statement indicates a clear determination to enrich the lives of its clients through innovative and valuable products. This is in connection with a price strategy that is not under estimated for their global automobile brands.
The company also has high market share and it aims at increasing it to 8 percent across the glove as well as its global profits. The company’s global strategy is also diverse with that of its competitor General Motors because Nissan is more focused on customer service and is also sensitive on environmental impact of its products. General Motors however engages in other financial businesses including housing mortgages unlike Nissan which is into automotive (Nissan, 2012).
Ford Company is located in Michigan, USA and has more than 171, 000 staff. Besides automobiles, the company deals with automotive financing. Over the years it has been in the industry, profits and income of the company had been declining but still high at $5.664 billion income. It operates on a one team; one goal and one plan that generally give raise to ‘one Ford built for the road ahead’, a slogan that drives the company to generate high revenues.
Through the company’s one strategy, Ford has continued to leverage its stock globally as its key springboard to compete efficiently in the global market. It focuses more on team work and not so much into other forms of investment outside automotive business as it is with the General Motors. Ford also boasts of high market shares in USA (19.5%) and in Europe (7.5%). The company’s strategy is to expand its Asian market and other parts of the world (Ford, 2013).
Honda is a Japanese company automotive company that also manufactures motorbikes. Motorbikes has earned the company great sales in the market compared to other motor companies. It has a wide coverage in automobiles including power generators, garden machines and water engines. This is one of the factors that make the company highly competitive in the global market because of wide range of products.
More than 180,000 employees work in the company that has a global market share of 6.7% and generates $5.00billion (Honda, 2012).
From the analysis above, it is clear that Nissan commands a high global market share in automobiles then Honda followed by the General Motors. General Motors ranks low in market share because of financial crisis the company suffered in 2009, as the other companies remained strong in the market.
Comparison of financial ratios
- EPS- earnings per share
- ROA-return on assets
- ROE-return on equity
- Profit margin and
- Current ratio
Companies’ quarterly financial ratios
|Financial Ratios||General Motors||Honda||Nissan Ford|
|Profit Margin||3.62%||4.32%||3.673% 3.24 %|
When it comes to the global, Honda Company is a major threat. This is because it is the largest motorcycle manufacturing company and it offers a wide range of automobiles compared to the General Motors, who focuses more on motor vehicles. The other companies make the most of high financial returns from their strategies and diverse production.
Ford Company for example has a one team, one goal and one company strategy that drive it to perform even better in the global market (Ford, 2013). The company also needs to venture in a wide range of automobiles and diversify its products alongside a market strategy that will give it a competitive edge.
Barofsky, Neil. Factors Affecting the Decisions of General Motors. Darby, PA: Diane publishing company, 2010.
“Ford Motor Company U.S. Sales Up 6 Percent, Outpacing Industry for … – Press Release.” Ford Motor Company – Official Global Ford Corporate Information . Ford, 1 Oct. 2013. Web. 2 Oct. 2013. <http://corporate.ford.com/news-center/press-releases-detail/september-2013-sales>.
- General Motors. 2010. “2010 Annual Report.” Retrieved October 2, 2013.
Honda Motor Co. Ltd. (HMC) | Common Stock Valuation Ratios (Price Multiples). (2012) Retrieved from http://www.stock-analysis-on.net/NYSE/Company/Honda-Motor-Co-Ltd/Valuation/Ratios>
Nissan motor company. News releases. Nissan Production, Sales and Export Results for December and Calendar Year 2012. Retrieved from http://www.nissan-global.com/EN/NEWS/2013/_STORY/130128-01-e.html.