General Electric (Ge) Analysis Using Porter's Approach
Case Study: General Electric (GE) Analysis using Porter’s Approach
By: Johnny Cantrell
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 …show more content…
In GE’s case it may actually be worse as many other companies from other industries can be viewed as a direct competitor. By this being the situation for GE, they are impacted and must closely monitor the competitive forces described in “Porter’s Approach”.
Potential Entrants are always popping up in the market place. In GE’s case this can happen from many different sectors. One of the most competitive sectors for GE is its home appliance business unit. However, due to the strong hold and reputable name GE has it isn’t really concerned with new entrants into its markets. GE along with other large competitors have created entry barriers that many smaller companies simply can not overcome. For companies that want to enter into the industrial market or financial services market they will not only have to contend with the barriers to compete with GE and others, but also the capital requirements, which could be overwhelming. It would also be very difficult to obtain access to major distribution channels due to the hold that big players such as GE already have with large retailers. And lastly, a new entrant would have to contend with the cost disadvantage it would be at due to sheer size and pricing of products to compete. While new entrants are something GE must always monitor, the threat to them is relatively small. Their reaction to new entrants would more than likely be swift and