The management expects to grow industrial earnings double digit. This external factor requires that new firms have high business capitalization and financial resources to establish operations that can effectively compete against firms like GE.
Nonetheless, the intensity of the bargaining power of suppliers on firms like General Electric is weakened because of the high overall supply, such as in the electric lighting industry. In relation, the low price sensitivity of customers reflects the low probability of buyers shifting to other brands when GE increases its prices.
In this component of the Five Forces analysis, the external factors create the moderate bargaining power of suppliers. For example, the company has advanced research and development processes for products in the healthcare and aviation industries.
This external factor has a weak contribution to the force of substitution. The quarterly dividend of the company has been increased for the fifth time in three years. This condition is especially observable in the aviation, healthcare, and transportation industries.
Competitive exposure of general electrics with strong performance of its stock in the month of September. GE acquired Industrea and Fairchild. In market penetration, the company grows by increasing its customer base in current markets.
Subsea Trees- High performance, durability and simple product structure. New entry can alter market dynamics and the corresponding strategies and management practices of businesses involved.
Competitive rivalry or competition — Strong force Bargaining power of buyers or customers — Moderate force Bargaining power of suppliers — Moderate force Threat of substitutes or substitution — Weak force Threat of new entrants or new entry — Weak force Recommendations. Some promising progress has been made by the company in terms of revenue growth and has also expanded its share in the global market by targeting new profitable opportunities in the emerging market.
Bio manufacturing- use in MAb therapies, cell line technology in Bio processing.
Also, GE aligns its intensive growth strategies with the competitive advantage targets based on strategic differentiation objectives.
This component of the Five Forces analysis presents the weak intensity of the threat of new entry. Threat of New Entrants or New Entry Weak Force New entry is a threat in the industry environment because of potential increases in competition with established firms like General Electric Company.
For example, General Electric can utilize its competitive advantage to maximize customer loyalty to the GE brand in the electric lighting industry.
For example, General Electric applies this intensive strategy through marketing campaigns that aim to add new customers and corresponding accounts.
In relation, the high cost of brand development is included in this external analysis because it limits the influence of new entry on General Electric and the industry environment.
The management is seeking to build this business organically. Overall, the external factors in this component of the Five Forces analysis maintain the strong intensity of competition that General Electric experiences. To ensure long-term competitiveness, strategic management must align with the impacts and intensities of external factors on General Electric.
Thus, substitutes are among the factors that shape strategic management in businesses. High cost of entry weak force High cost of brand development weak force High economies of scale weak force The force of new entrants against General Electric is weak partly because of the high cost of entry.
For example, firms like Siemens and 3M are typically aggressive in competing, especially in innovating and marketing their products. This external analysis also points out the low availability of substitutes in many of the industries where GE operates. For example, under this intensive strategy, GE maintains high-productivity research and development processes.
For example, General Electric relies on diversification as a major growth factor through the years. Public Domain General Electric Company GE maintains its status as a major industry influencer through strategies that support growth and competitiveness.Competition reflects the degree of competitive interactions among firms, including General Electric Company, in the same markets or industry environments.
This component of the Porter’s Five Forces analysis model evaluates the external factors responsible for competition that affects the business, which in this case is GE. How General Electric Company Stacks Up Against the Competition GE's a behemoth of a company, but is it the best industrial stock for your money?
Isaac Pino, CPA. General Electric Company (NYSE:GE) is a highly diversified technology and financial services corporation, with its offerings ranging from aircraft engines, water processing, power generation, and household appliances to medical imaging, business and consumer financing and industrial products.
General Electric Company’s generic strategy (Porter’s model) for competitive advantage and intensive strategies for growth lead to business competitiveness in the energy, oil and gas, electric lighting, healthcare, aviation/aerospace, and transportation industries. Competitive Exposure of General Electrics Essay Competitive Exposure GM’s * Competitive exposure has nothing to do with Cash Flows or Balance Sheet as opposed to Transactional or Read More.
Words 3 Pages. General Motors Competitive Exposure Essay. Competitive Exposure GM’s Case Study 3 Question 1 - Why is GM worried about the evolution of the JPY?
* The Japanese automakers were one of the main competitors of General Motors because their main advantage came from having large portions of their cost structure denominated in Yen, which meant that they were liable to achieve .Download