Global recognition: General Electric has ventured into the world market thus gaining global recognition for its unique goods and services. In the year 2009, Forbes magazine ranked GE as the world's largest company. Hurbert (2007) notes that General Electric's brand is the world's most recognized brand. This kind of recognition has given it a competitive edge over other companies due to its ability to attract more customers.
Global strength and competitiveness:The Company’s products have been recognized for their quality and the company is known for meeting customer-specific needs (General Electric, 2009). As a result, it has attracted numerous clients including corporations ...view middle of the document...
Its 'Ecoimagination' program is undertaking the production of environmentally friendly technologies, energy sources such as solar, low emission engines for airplanes, hybrid locomotives and water purification (Makower, 2005). This has earned a good reputation for the company which is considered socially and environmentally responsible.
Under-performing energy sector:Following the global crisis and the serious fluctuations in fuel prices, the energy sector is not performing as expected (Hurbert, 2007). Fluctuations in prices of oil and gas have mostly been caused by supply shortages and this has threatened the company's profitability.
Threat to flexibility:Too much diversification is often considered dangerous for a company. This is because it results in over-stretching which usually slows down decision making. At GE, the numerous units require attention and could prove hard to manage if excessive diversification occurs.
Mergers and acquisitions: GE has performed several mergers in the recent past. These not only help the company to expand globally but to diversify its activities into new areas thus increasing productivity. Some of the companies include Interbanca S.P.A, Whatman Plc, VetcoGrey and Turbomecanica Combustor Products (General Electric, 2009). The merger of NBC with Vivedi opens better opportunities for GE in the media business.
Research and development:Intensified research and development characterize the company's activities as it seeks to maintain a competitive edge over others in the same industry. A substantial amount of resources are committed in the company's relentless efforts to ensure the production of innovative products which meet current customer demands (Hurbert, 2007).
Competition: Operating in an environment where stiff competition is present is a threat in itself. Just like any other company, GE risks losing its customers to competitors. Competition could be intensified by better production techniques and technology among competitors such that the company's goods may be outdone in the market.
Information security:When it comes to information security, every company faces a threat of losing important information through hackers, natural disasters and employee dishonesty. Loss of information could greatly affect the company's activities and cause a slow-down in production.
Financial crisis: The global financial crisis has had an effect on most companies in the world today. The rises in prices and shrinking bank lending rates have deprived businesses of the much needed profits and capital...