SWOT analysis of Cadillac

Cadillac is owned by US-based car manufacturing company popularly known as General Motors which is the well established global brand. Cadillac is one of the oldest car brands in the world. The company was established by the members who got separated from Henry Ford Company in the year of 1902. Cadillac got acquired by GM in 1902 when it was one of the best luxury cars in the USA.

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Strengths in the SWOT analysis of Cadillac

This helps in understanding the core areas of the business where it beats the competition and have the competitive advantage in the market. Strengths are generally the core competency of the business.

State of the art technology – Cadillac has always used the modern car manufacturing technology in order to produce the best quality cars on the market. This has helped the brand to establish its niche in the market.
A Strong Brand Image – Cadillac is owned by General Motors which has a very well-established brand image across the globe. Cadillac itself is world famous due to the luxury it offers to the customers. It belongs to the premium segment and had been the US most selling premium car right at the start of its journey.
High-Quality Cars – The cars are very high quality in nature owing to the various security features. The car provides high comfort to the users and convenience at the same time. The car provides a great sense of status and features which imparts luxury to the customers while driving and converts every drive into a great experience.

Weaknesses in the SWOT analysis of Cadillac

This is the pain area of the organization where it does not have the resources or skills. Business has to work upon these areas so that they are not left behind from the competition. Though there will be some or the other weakness but it should not be an area which takes the business out of the market

Product Recall Issues – One of the major crisis that Cadillac faced was with the ignition switch and due to which the company had to recall its products from the market. This led to the loss of trust in the brand and hence the brand equity decreased due to this operational issue.
Losses due to Strong Dollar – The dollar value had been really high over the years and this has resulted in consistent losses over the profit which were accumulated from other parts of the world apart from the US. The brand had to highly rely on the American markets owing to the increased value of the dollar.
Dependence on the US markets –There is a global market turmoil for the brand because the brand is highly reliant on the US markets for its profit and revenue. Thus the brand is totally dependent on one market for its revenues.

Opportunities in the SWOT analysis of Cadillac

This helps in understanding what other things a business can do with the current skills and resources. It helps the business to know the areas where it can expand and take a lead in order to diversify the business and expand the customer base

Developing Asian Markets – Asian markets are getting wealthier and hence there is an increased potential for the brand in these markets.
Global Collaboration – The business can think of collaborating with other car makers in different parts of the work to enter different markets and try to establish the brand in those markets with the help of local car manufacturers.

Threats in the SWOT analysis of Cadillac

This analysis helps in understanding what are the areas which can impact the business in future or right away. So business has to prepare itself to handle the threats in the market landscape. Competition or increasing number of players in the market with same value proposition is a threat to business as it directly lowers down the customer base and revenue

Increased Competition in the market –There is a rising competition in the car industry and hence it poses a great challenge to Cadillac because the new entrants and the new definition of luxury in cars are being introduced by new players and competition which is moving attention of the customers from the brand.
Increased Cost of Manufacturing – Due to increase in the labor cost and the increase in the prices of various raw materials used in car manufacturing has led to the increase in the final car prices.