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Explaining SWOT Analysis of Cadillac – with 360 Analysis

Updated on: Dec 31, 2021
SWOT Analysis of Cadillac - Featured Image

In our previous SWOT analysis, we talked about the world’s most advanced sports car designer, Ferrari. This time we are going to explain to you the SWOT analysis of Cadillac in detail.

One of the world’s luxurious car brands – Cadillac is a division of the American automobile manufacturer GM (General Motors). Cadillac luxurious car major markets are the United States, Canada, and China but it distributes its cars in 34 countries worldwide. Till now Cadillac brand models are sold more than 390,458 worldwide. 

The reason behind the success of Cadillac is the brand using effective marketing strategies to maintain its place in the market. Digital marketing has played a major role in the success of the Cadillac. And keeping yourself upgraded with the latest digital marketing trends by attending the Free MasterClass on Digital Marketing 101, hosted by Karan Shah, CEO and Founder of IIDE is very important. Book your seat now.

Now, right before we delve into the SWOT Analysis of Cadillac, let’s look at the background of the company, its founders, financial status, competitors and products.  

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About Cadillac

SWOT Analysis of Cadillac - Henry M. Leland - The Founder of Cadillac
(Henry M. Leland – The Founder of Cadillac, Image: IIDE Creator’s Room)

Two engineer friends named Henry M. Leland & Henry Ford introduced an automotive company named Henry Ford Company in 1901, later on, due to some disputes between Henry Ford and his investors, Henry Ford left the company in 1902 and created his separate company named Ford Motor Company.  

Henry Ford Company was defunct in the year 1902. But, Henry Ford’s financial backers William Murphy and Lemuel Bowen stayed and supported Henry M. Leland with financial assets to form his company using the old Henry Ford factory and that’s how Cadillac was born in the year 1902. 

After several years, Cadillac started examining engineering to produce more overwhelmingly powerful and luxurious cars. This enthusiasm of engineers and the growth of the Cadillac caught the eye of General Motors and GM purchased the company in 1909 to support the mass production of Cadillac automobiles.

Quick Stats on Cadillac
Founder Henry M. Leland, William Murphy, and Lemuel Bowen
Year Founded 1902
Origin Detroit, Michigan, US
No. of Employees 155,000 at GM
Company Type Brand Division of GM
Market Cap N/A
Annual Revenue N/A
Net Income/ Profit N/A

 

SWOT Analysis of Cadillac - Black Cadillac


Products by Cadillac

  • Luxury Vehicles
  • Acoustical
  • Aero Packages
  • Water Shields
  • Thermal Products
  • Speciality Products


Competitors of Cadillac

The Cadillac car has worldwide demand which makes it more popular among competitors. The top 5 competitors are given below:

  • Lexus
  • Acura
  • Mercedes Benz
  • BMW
  • Audi

Now that we understand the company’s key business, let’s look after the SWOT Analysis of Cadillac.


SWOT Analysis of Cadillac

SWOT Analysis of Cadillac can show how a well-established company uses its opportunities to ensure its growth. It can show how the company takes advantage of its strengths to use the opportunities while working on its weaknesses. SWOT Analysis of Cadillac will also reveal its expansion plans.

To better understand the SWOT analysis of Cadillac, refer to the infographic below:

SWOT Analysis of Cadillac - SWOT Infographics of Cadillac

Now first let’s begin with the strengths of the company from the SWOT analysis of Cadillac.

Strengths of Cadillac

  • Design and Advanced Technology: This is the best tool used by the Cadillac experts to make it still growing in the market along with its electric operating car system and elegant car designs which makes it eye-catchy.
  • Powerful Brand Appearance: Cadillac is owned by General Motors which is the plus point and the way they inspire people through their advertisements is unbeatable which makes it more prominent in the market.
  • High Caliber Cars: Cadillac designed iconic SUVs which gave the boost to this automobile company. Cadillac cars provide comfortable rides and a pleasant sitting environment due to their advanced car system.
  • Popularity Among Elite Class: Cadillac manufactures luxurious cars which makes it more affordable in high-class society because they can bear the expenses. In other words, their targeted audience is rich people.
  • Market Position: Cadillac cars are mostly found in 40 countries that are economically stable so the major marketplace of Cadillac is the USA, Canada and China etc.
  • Cooperative Dealer Community: Cadillac has friendly relations with its dealers that’s why they are the main source of sales and brand promotion in the market.


Weaknesses of Cadillac

  • Product Default Issues: Cadillac has faced criticism by customers due to its faulty ignition switch which leads to a great loss of people’s trust in their products.
  • High Prices: Cadillac cars are still undiscovered by developing and underdeveloped countries due to their high rate. 
  • Rely on the US Market: The scenario was even worse when Cadillac had to rely on the US market due to covid 19 pandemic in 2019 to 2020 the major source of revenue was only the USA market.
  • Still Not Known in Some Countries: Cadillac has still not been introduced in some countries of the world which is still an alarming signal. They’ve to set up companies in other countries as well.
  • High Maintenance Rate: The estimated cost of 10 years of Cadillac car maintenance is $12,500 which means $1,250 per year which is quite expensive.


Opportunities for Cadillac

  • Upgrading Asian Markets: Some Asian countries, in collaboration with Cadillac, want to establish their own automobile companies which is a 360 degree turnover for a  country. 
  • Introduction of Bike Series: Cadillac has to invest in the middle range to the high range motorbike manufacturing in such a way that the middle-class person can also buy it. In this way, they gain more attention and fame among people
  • Internet Marketing: We usually don’t see any Cadillac advertisements on Youtube, Facebook and other social media platforms which indicates that Cadillac is missing out on a major chunk of the market which is on the internet. So, Cadillac must explore the internet to expand its business.

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  • Easy Installments Facilities: If Cadillac gives its customers cars in easy instalments it will increase its sales globally.


Threats to Cadillac

  • High Competition: Brands like BMW, Mercedes and Lexus are performing better than Cadillac in the luxury market segment with the help of market coverage and more reach in other nations. 
  • Lack of Independence: Cadillac is the division of General Motors and if for instance, General Motors faces a financial crisis so there is a high possibility the Cadillac will also be affected. So, Cadillac should try its best to work as an independent company in the market.
  • Technological Advancement: Autopilot cars, hybrid cars and Electric cars with a new sense of sound recognition technology are the centres of attention nowadays which is again a threat for Cadillac cars whose high power engine needs Diesel to operate.
  • Different Countries Make Different Laws: Every country wants to earn more to do so they sometimes make some amendments in their laws, as a result, the Cadillac has to suffer.
  •  

This ends our SWOT analysis of Cadillac. Let us conclude our learning below.

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To Conclude

To conclude the SWOT analysis of Cadillac, it is obvious that Cadillac brings a remarkable change in the automobiles industry but it’s not enough they have to adopt some recent technologies and think about the future problems of the world so that they maintain their position in the market.

Cadillac has a strong grasp over traditional marketing and digital marketing, the scope to utilise the big umbrella of digital marketing is even bigger. As we said in the middle of the article, gaining the requisite skills in this field and completing certified courses may lead to employment opportunities with famous corporations such as Cadillac.

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We hope this blog on the SWOT analysis of Cadillac has given you a good insight into the company’s strengths, weaknesses, opportunities and threats.

If you enjoy in-depth company research just like the SWOT analysis of Cadillac, check out our IIDE Knowledge portal for more fascinating case studies.

Thank you for taking the time to read this, and do share your thoughts on this case study of the SWOT analysis of Cadillac in the comments section below.

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Aditya Shastri

Lead Trainer & Head of Learning & Development at IIDE

Leads the Learning & Development segment at IIDE. He is a Content Marketing Expert and has trained 6000+ students and working professionals on various topics of Digital Marketing. He has been a guest speaker at prominent colleges in India including IIMs......[Read full bio]

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