General Electric (Ge) Analysis Using Porter's Approach
General Electric (GE)
Strategic Management
Case Study: General Electric (GE) Analysis using Porter’s Approach
By: Johnny Cantrell
Part A:
General Electric, or GE as it is better known, is a diversified technology, media, and financial services company. Their primary objective as stated is “focused on solving some of the world's toughest problems”. Their slogan, which is “imagination at work”, truly says everything there is to know about the vision of the company. Inside GE they truly believe if you can imagine it, it is possible. While GE is one of the most diversified companies in the world, they are primarily viewed as an industrial company as well as a financial services company. The company is listed on the New York Stock Exchange (NYSE) assigned to the “consumer financial services” industry in the “financial” sector, but recently has shown signs that it may be focusing more of an interest in its industrial units.
The company currently sells everything from wind turbines to jet engines to locomotives. A lot of emphasis was placed on this unit in late 2009 and early 2010 and due to laggings sales was held largely responsible for company missing market expectation on Wall Street. Many experts believe this focus is due to the slump in the financial markets, but also due to the many contracts and commitments the company has made to focus more on “green” energy initiatives. In addition, GE has invested heavily in water processing technology as well as medical imaging. The company conducts operations globally and even trades on foreign markets. Along with balancing the vast diversification of products in multiple markets GE also owns NBC, the television network and is also the recipient of one of the more lucrative agreements with the Department of Defense (DOD). For the DOD they work in “research & development”, which primarily involves but is not limited to, their jet engine unit. They both design and sale jet engines
Strategic Management
Case Study: General Electric (GE) Analysis using Porter’s Approach
By: Johnny Cantrell
Part A:
General Electric, or GE as it is better known, is a diversified technology, media, and financial services company. Their primary objective as stated is “focused on solving some of the world's toughest problems”. Their slogan, which is “imagination at work”, truly says everything there is to know about the vision of the company. Inside GE they truly believe if you can imagine it, it is possible. While GE is one of the most diversified companies in the world, they are primarily viewed as an industrial company as well as a financial services company. The company is listed on the New York Stock Exchange (NYSE) assigned to the “consumer financial services” industry in the “financial” sector, but recently has shown signs that it may be focusing more of an interest in its industrial units.
The company currently sells everything from wind turbines to jet engines to locomotives. A lot of emphasis was placed on this unit in late 2009 and early 2010 and due to laggings sales was held largely responsible for company missing market expectation on Wall Street. Many experts believe this focus is due to the slump in the financial markets, but also due to the many contracts and commitments the company has made to focus more on “green” energy initiatives. In addition, GE has invested heavily in water processing technology as well as medical imaging. The company conducts operations globally and even trades on foreign markets. Along with balancing the vast diversification of products in multiple markets GE also owns NBC, the television network and is also the recipient of one of the more lucrative agreements with the Department of Defense (DOD). For the DOD they work in “research & development”, which primarily involves but is not limited to, their jet engine unit. They both design and sale jet engines
Bibliography: Associated Press: Featured Article. (2010, October 18). GE 3Q Profit Drops 18%, Sales of Equipment Fall. Retrieved October 19, 2010 from http://topnews360.tmcnet.com/topics/associated-press/articles/109507-ge-3q-profit-drops-18-pct-sales-equipment.htm Malone, S., (2010, October 15). GE Posts Sales Slump, Rattles Recovery Hopes. ABCnews.com. Retrieved October 19, 2010 from http://abcnews.go.com/Business Rosenbaum, E., (2010, April). GE Earnings Show Wind, Solar Weakness. thestreet.com. Retrieved October 23, 2010 from http://www.thestreet.com/story/10728299/ge-earnings-show-wind-solar-weakness.html Wheelen, T. L., & Hunger, J.D. (2008). Strategic management and business policy (11th ed.). Upper Saddle River, NJ: Prentice Hall. Ch. 4, pp. 71-99. Wikipedia, The Free Online Encyclopedia: General Electric. Retrieved October 21, 2010, from http://en.wikipedia.org/wiki/General_Electric