DIVISIONS OF GENERAL ELECTRIC

Energy
Energy Services Oil & Gas Power & Water
Technology Infrastructure
Aviation
Healthcare
Transportation
GE Capital
Aviation Financial Services
Consumer Finance
Europe, Middle East & Africa
Energy Financial Services
Real Estate
Home & Business Solutions
Appliances & Lighting
Intelligent Platforms

RAW MATERIAL TO FINISHED GOODS

General Electric rely on
third-party suppliers
contract manufacturers & service providers
and commodity markets
Some of these suppliers or their sub-suppliers are
limited- or sole-source suppliers.

The General Electric Company deals with business

companies (B2B)

DISTRIBUTION CHANNEL
1 - Distributor: Stock and resell GE products &
services
2 - Reseller: resell GE products and services
3 - Value-added Reseller: enhance GE products &
services and sell them as solutions
4 - Representative: facilitate sale of GE products
& services

BARGAINING POWER OF BUYERS

Due to the size of General electric, they have
considerable bargaining power for most of their
products.
For companies such as GE Healthcare the volume
per buyer is very high in quantity of goods and
cost of goods, making the switching cost high for
buyers, giving GE the advantage
For other companies such as GE financial, it is
easier and not as costly for buyers to switch,
making it essential that GE stays competitive in
price wars with the competition.

BARGAINING POWER OF SUPPLIERS

The bargaining power of suppliers is relatively low
for GEs many industries
Because of the shear volume of goods that GE
buys for their suppliers, suppliers have very little
ability to bargain with GE
Most of GEs suppliers could not survive if they
lost GEs business
GE has to be aware of suppliers that might
integrate forward

RIVALRY AMONG COMPETITORS

Rivalry with Siemens biggest competitor
Creating competitive advantages to create
bigger market share
Acquisitions, mergers and joint-ventures
Battle for innovation and technological
improvements
GE has high brand recognition, market share,
access to assets and competencies and customer
loyalty making it highly competitive within the
industry

HOW GE IS EARNING PROFIT?

selling off some of its less profitable assets.
According to the chief executive officer Jeff
Immelt describes it, the portfolio from a broad
conglomerate to a more focused infrastructure
leader.
GE is making profit as it is meeting the needs of
its customers with innovative products.

FINANCIAL ANALYSIS

BUSINESS OF GE
GE's Directors have adopted corporate
governance principles aimed at ensuring that the
Board is independent and fully informed on the
key strategic and risk issues facing GE.

CHALLENGES
From the last few years the share price of GE has
decreased
The main reason behind this is having a diverse
portfolio
Solution:
GE is reducing its financial units
And investing the proceeds in other business divisions

SIX SIGMA

In order to maintain a world-class quality, GE focuses on

these three essential elements of quality
customer,
process
employee

GENERIC STRATEGIES
Cost Advantage
The company is getting cost advantage as the company
rely on sole-suppliers

Differentiation Advantage
The has differentiated its products from its competitors
as they are meeting the needs of its customers with
innovative products

Specialization
The GE has specialized employees, who are responsible
for its success