Scanning the Environments
Scanning the Environments
General Electric is a corporation that was incorporated in 1892. It has grown over the centuries into a global digitized industry. It has its headquarters in Boston, Massachusetts and their offices are situated in Rockefeller Centre, 30 Rockefeller plaza in New York City. General Electric Company has identified itself in the market as a business with other primary businesses. These primary businesses are units that manage themselves as a single enterprise. The slogan of the company was changed from “We Bring Good Things to Life” to “Imagination at Work” with the aim of backing up and supporting the image and creations of the companyhttps://www.ge.com.
General Electric Company is unique such that they have been constantly developing the people and their customers. Through that development they have been able to build the company, power up, excel and cure. They have been able to maintain their record of 130 years of good management, leadership and innovation. They have core values of that are applicable to the employees in the company. It also works with entrepreneurs by sponsoring programs that deal with health care. It is a company that uses green energy and has interests in the healthcare sector https://www.ge.com
General Electric later on focused on four core businesses. General Electric’s direction of the market involves merging technology and the industry together, such a way that they both work hand in hand. The several products and services that are produced in General Electric ranges from aircraft engines, oil, electric motors, wind turbines, healthcare, electrical distribution, energy, software, water, weapons and gas. These products are operated in segments that include aviation, transportation, energy connections and lighting, renewable energy, power, health care, capital, oil and gas https://www.ge.com.
The segment on power is interested in providing its customers with products or services that deal with reusing water and producing energy. The company uses natural resources such as oil and gas to manufacture electric energy. The segment on aviation deals with manufacturing aircraft engines either for both military and commercial use. Health care segment deals with providing technological appliances and devices that can be used to improve the health of people (https://www.ge.com).
Capital segment is responsible for providing countries with products and services that deal with finances. The segment on renewable energy deals with providing renewable sources of energy. Oil and gas segment deals with all the services involved in the oil and gas industry. Energy connection and lighting deals with providing electrical power. Thus these segments and products show how they are integrated in the company.
According to (Sioshansi, 2011), the main most common competitors of General Electric include Siemens, AG and Emerson Electric. They have similarities with General Electric such that they are leading in being companies that are diverse. Thus because of diversification, the competition becomes very high. The great profits in the industry has lead to an alarming increase in competition thus posing risks in General Electric Company. In instances where competition in Ecomagination is concerned, General Electric has made efforts in partnering up with other companies to achieve moderate levels.
Bargaining power of buyers
The size of General Electric Company gives them an upper hand in bargaining. However, there are instances like in finance, technology and broadcasting where the buyers have a high bargaining power. In areas like health care, the company has a higher bargaining power depending on the quantity and quality of the products. In the industrial sector, their bargaining power is low because of their competitors.
Potential new entrants into the industry
There is a very low threat when it comes to new entrants into the industry. General Electric Company is a very big company that has gone global and has been in the market for a very long time. As shared by (Sioshansi, 2011), having a new company compete with General Electric will be very hard because it will need a good investment, marketing strategy and strong branding skills. The new company would also need to build a better reputation and quality products or services as compress to General Electric and its competitors.
Power of Suppliers
General Electric company has so many segments that are an individual enterprise, thus when it comes to suppliers their bargaining power is very low. General Electric usually creates a good relationship with the suppliers by giving them a long limited period. Thus General Electric buys so many goods and products from suppliers. This does not give them the opportunity to bargain because they need that business and support from General Electric Company to run their businesses for survival (Dobbs, 2014).
Threats of Substitutes
General Electric however poses a threat of having substitute products because other companies might have a creation of better and new products or services in the industry. General Electric consumer products and technologies in health care have a threat of being substituted by either better products or technologies that are more efficient in the market. However General Electric might not experience financial substitution.
Other stake holders
According to (Dobbs, 2014), stakeholders play a very significant role when it comes to the formation of the company’s strategy. In General electric, the Honeywell merger caused a lot of problems especially concerning the stakeholders and trust issues. This made the deal to be thoroughly checked by the department of Justice. The government struggled with enterprises over power because there were no actions made on the regulation of the economy.
General Electric is likely to face challenges when it comes to earning more profits due to the fluctuating cost of fuel because of global crisis. Global crisis has also made the energy sector perform poorly. The varying prices in oil and gas has been influenced mostly by shortage in supply leading to low or poor generation of profits in a company. Another threat is concerning flexibility due to diversification in General Electric Company. Diversification in a company is usually not advised because it poses a threat to a company when all the units are not managed well. It might hinder the processes behind making the decisions in the company (Sioshansi, 2011).
According to (Sioshansi, 2011) the General Electric company faces a threat on competition where it might lose customers to the company’s competitors. When the competitors manufacture better products with great innovations, technology and affordable then they are more likely to lose their customers. The company is also likely to be at threat in financial crisis. Generally, financial crisis usually affects so many companies due to the rise and fall in prices that affect borrowing rates at the banks. Another threat is concerning media depictions which the company has faced in the past. These media depictions are usually used by competitors to tarnish the reputation of the company.
General Electric should maintain their global recognition because it has given them many customers and an advantage over their competitors. The company should also maintain its diversified lines by maintaining their investments in the several segments. It should also maintain its ability in going green. Where they produce products that are environmentally friendly whether in technology or in terms of energy (http://wedreambusiness.org/General-Electric-Company.html).
General Electric Company has opportunities in merging with other companies for purposes of development and better opportunities in new ventures. The company has an advantage in that they can carry out research and develop innovative and creative products. This research aims at meeting the customer’s specifications and maintaining a good competitive edge compared to the competitors (http://wedreambusiness.org/General-Electric-Company.html).
M E. Dobbs. (2014), Guidelines for applying Porter’s five forces framework: a set of industry analysis templates
FP Sioshansi. (2011), Competitive electricity markets: design, implementation, performance
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