ntal and economic concerns stress economy.
Manufacturing GM has many production facilities and several lines of SUV. Its partnership with AM General provides enormous expertise and capability. The H2 will share parts with other GM SUVs. GM experienced a set-back in Cadillac sales when the public learned this luxury vehicle shared parts with other, lower-end GM products.
Product Performance The HUMVEE (original military vehicle) and H1 provide superior performance, particularly off-road. Performance comes at a price: the vehicle is not suited to urban driving.
External Factors Opportunities Threats
Social The U.S. conflict in Iraq has again placed the HUMVEE in the spotlight. Many Americans view the Hummer as a symbol of all things American. The Hummer inspires patriotism and pride at a time when America is at war with, and at risk from, terrorism. Hostilities in Iraq have generated positive appeal for a segment of the SUV-buying market. Environmentalists are outraged that GM markets a product so wasteful and potentially harmful to the environment as the Hummer. They accuse the company of irresponsibility; and the war in Iraq simply emphasizes that irresponsibility, pointing out the contradiction of producing a gas-guzzling consumer product at a time when the US is engaged in a war that directly impacts the price and availability of petroleum.
Assess: The love-hate relationship inspired by the Hummer (and H2) is a blessing and a curse. It's a delicate issue that must be delicately managed.
Predict: Opposition faced by the Hummer will increase, forcing GM to compromise its appeal to the rugged male individualist.
Accommodate: GM will need to improve the image of the Hummer as a gas-guzzling behemoth by introducing fuel-saving features. A hybrid gas-electric Hummer is in concept.
Competitive The market for luxury SUVs is crowded, but the Hummer has a strong brand and offers a unique product. GM should be able to differ...