Value Chain Analysis of General Motors

General Motor Company (GM) is an automotive manufacturing American multinational company. William C. Durant founded the automobile company in 1908. Today, we’ll discuss the GM value chain analysis of General Motors supply chain analysis; primary and supporting activities in the process of value chain analysis Example Company. They are inbound and outbound logistics, operations, marketing, and customer service; infrastructure, HRM, technology, and procurement as an application of the value chain analysis process.

Suppliers of General Motors

• NYX LLC
• Marvell Technology
• DM Control
• Astemo
• Moon Star Express
• Gallagher-Kaiser Corporation
• Dedicated Logistics
• Adient

The GM Value chain analysis of General Motors supply chain analysis would analyze the primary and supporting activities in the process of value chain analysis. They’re inbound and outbound logistics, operations, marketing, and services; infrastructure, HRM, technology, and procurement. Here’s supply chain analysis of General Motors (GM) value chain analysis company example as follows;

Value Chain Analysis of General Motors

Let’s discuss the primary and supporting activities involved in the process of GM value chain analysis of General Motors supply chain analysis. It is an application of value chain analysis based on Porter’s model; some of the key elements and components of value chain analysis are as follows;

Primary Activities of General Motors

Some of the five main primary activities in the GM value chain analysis of General Motors supply chain analysis are as follows;

Inbound Logistics of General Motors

I-Large Suppliers Network

General Motors (GM) has established a very large network of suppliers comprising of over 300 diverse suppliers across the US and Canada. The automotive company makes sure the supplier’s diversity and promotes small businesses. However, the objective of the supplier diversity program is to drive inclusion, equity, and empowerment in the supply chain network.

II-Suppliers Award

In order to promote technological innovation in the supply chain network, General Motors (GM) organizes the suppliers of the Year award to recognize the top-performing suppliers. The support and innovation from the suppliers play a critical role in the development of top-class automobiles. GM selects the supplier’s winner based on the following criteria and standards;

• Performance
• Innovation
• Cultural alignment with the company’s values
• Commitment to GM goals and objectives
• Safety
• Inclusion
• Relationship of suppliers
• Sustainability

III-Suppliers Relationship

General Motors (GM) focuses on building a strong and long-term relationship with its automotive parts suppliers. The partnership and alliance with suppliers help the automobile brand to ensure the smooth supply of automotive parts.

Outbound Logistics of General Motors

I-Parts Distribution Centers

General Motors (GM) has established a network of parts distribution centers in various states of the US. The company’s distribution centers receive parts and supplies from the manufacturing facilities; from the distribution centers, they deliver the parts to the manufacturing plans, assembly lines, and dealership stores for production, repair, and maintenance.

II-Multiple Channels & Mediums

General Motors (GM) employs multiple channels like trucks, rail, and ships for distributing its automobiles across the US, Canada, and Worldwide. Multiple transportation and distribution channels help the company to make its vehicles available in various markets across the globe.

Operations of General Motors

I-Manufacturing & Assembly Units

General Motors (GM) has established a network of more than 21 distribution centers, 24 propulsion, 15 assembly plans, and 155 production and manufacturing units across the US. They play a key role in the production, manufacturing, and assembling of automobiles and making them available for the end consumers.

Marketing & Sales of General Motors

I-Dealers Store

According to an estimate, General Motors (GM) has a network of more than 4000 authorized GM dealers’ stores across the US. They sell the finished and final automobiles to the end consumers.

II-Marketing & Promotion

General Motors (GM) employs different media channels and marketing strategies for the promotion of its automobiles and vehicles. They are digital media, print media, GM magazines, celebrity endorsements, TV advertisements, and social media platforms.

Services of General Motors

I-After Sale Services

General Motors (GM) offers a wide range of after-sale services to customers. Some of them are as follows;

• Loan and lending
• Working capital
• Inventory insurance
• Financing inventory
• New and used vehicle inventory
• Credit services
• Leasing
• Repair and maintenance
• Accessories and parts changing
• Lights replacement

Supporting Activities of General Motors

Some of the main supporting activities in the GM value chain analysis of General Motors supply chain analysis are as follows;

Infrastructure of General Motors

General Motors (GM) has established a very large network of production and manufacturing facilities, assembly plants, distribution centers, research facilities, and dealer networks. Well-organized supply chain and distribution network helps the automotive brand to perform its production operations on time without any disruptions. As a result, the company develops top-quality automobiles for customers.

HRM of General Motors

General Motors (GM) has employed over 163000 employees to manage its global operations. The human resource management department of the company plays a key role in building a diverse workplace environment; promoting tech innovation and creativity. Some of the main awards and recognitions GM has achieved in recent years are as follows;

• World’s Most Ethical Companies 2023
• Top US Companies by LinkedIn
• Top 50 Companies for Diversity Inclusion
• America’s Most Just Companies by Forbes
• Gender-Equality Index by Bloomberg
• Readers Choice of Top 50 Employers

Technological Development of General Motors

General Motors (GM) invests a significant amount of capital resources in research and development for manufacturing tech-advanced automobiles. R&D has allowed the company to develop the most advance safety features for automobiles. However, it focuses on the following areas;

• Software architect, electrical and ADAS technologies
• Biosensing accessibility, information display, connectivity, and safety and comfort
• Lightweight material system and sustainable material and processing
• Electrification, control, and propulsion system
• Efficient battery material and systems

Procurement of General Motors

General Motors (GM) is highly cautious about the sustainable sourcing and ethical procurement of raw materials and supplies. The automotive brand makes sure that the company’s suppliers and vendors engage in ethical and sustainable practices in their workplace; and comply with the human rights standards.

Conclusion: General Motors (GM) Value Chain Analysis Example Company | Application of Value Chain Analysis Process 

After an in-depth study of the value chain analysis of General Motors (GM); we have realized that GM is the world’s leading automobile brand. If you are learning about the General Motors (GM) value chain analysis example company; then you should keep in mind the abovementioned primary and supporting activities. They’re inbound and outbound logistics; operations, marketing and sales, and services; infrastructure, procurement, HRM, and technological development as an application of the value chain analysis process.