This study provides a market positioning assessment for the Hummer, a product of AM General.
Section 2 of this document contains an analysis of the strengths, weaknesses, opportunities, and threats (SWOT) of AM General. Section 3 provides an analysis of the alternative market segments that may be pursued for the Hummer. Section 4 provides a brief assessment of market sizes. Section 5 draws conclusions and makes recommendations for the marketing mix for the Hummer.
2 SWOT Analysis.
This section reviews the strengths, weaknesses, external opportunities, and external threats (SWOT) for AM General.
Internal Strengths.
Proven innovation in the design of special-purpose vehicles.
Ownership by a parent company, ameliorating cash-flow concerns and facilitating long-term capital investment.
Strong public perception as the provider of an important military vehicle.
Public perception of the Hummer as a product that evokes off-road-orientation, machismo, and high status.
A continuing anchor customer in the US military.
A small but growing consumer market.
Internal Weaknesses.
A historical focus on the government as a customer, which may introduce cultural attitudes and procedures incompatible with other markets.
A high unit price for current products, most likely reflecting costly features to meet military specifications.
External Opportunities.
Potential markets including foreign militaries, other government agencies, businesses needing special-purpose vehicles, and consumers.
Potential for expansion into other specialty vehicles for business and governmental use, such as fire engines, police cars, ambulances, and other specialty vehicles for construction and other rugged use.
External Threats.
Reliance on the US military as a single primary customer is a source of risk. The level of production for the US military may be subject to significant fluctuations.
The consumer market may be highly sensitive to changes in consumer sentiment and in economic conditions.