SWOT Analysis of GE | GE Strengths, Weaknesses, Opportunities and Threats
1. What is GE?
GE is a multinational corporation that specializes in technology.
GE stands for General Electric. It is an American multinational conglomerate company that is based in Boston, Massachusetts and specializes in manufacturing of products including aviation engines, power generation equipment, medical imaging equipment, railroad locomotives and other related goods.
The company was founded by Thomas Edison and incorporated on October 24, 1892 and has since enjoyed a significant presence internationally in many different industries, including aviation, healthcare, power, renewable energy.
GE is headquartered in Boston, Massachusetts, United State. The current CEO of the Company is H. Lawrence Culp Jr.
2. How is the Business Model for GE?
Business Model of GE is to provide products and services related to power generation & energy. Since its inception in 1892, General Electric (GE) has been a global leader and innovator in the electronics and technology industry.
Today, GE is composed of several divisions- including GE Aviation, GE Healthcare, GE Transportation Systems and others.
The company’s revenue for 2016 was $123 billion.
The company works within four primary sectors: Energy Infrastructure, Technology Infrastructure, Capital Finance and Consumer & Industrial.
3. How does GE makes money?
GE makes money through providing products and services, owning other companies.
One of the major businesses it operates is Service & Support, which provides support for its customers’ installations, maintenance and repair of equipment.
a) Integrated Products & Services: The Company has over 40 business units that are focused on providing engineered solutions to customers. These are often integrated to help customers grow their businesses.
b) Aviation: Aviation is a significant part of GE’s overall business, particularly the production of jet engines. It provides engines for a variety of aircraft including as well as large commercial aircraft such as the Boeing 787, as well as for military applications.
c) Power: GE provides gas and steam turbines to utilities and industrial operations around the world. The company also offers products such as wind turbines and electrical generators for energy production.
d) Medical Equipment: GE is responsible for providing equipment including incubators, electric wheelchairs, video monitoring systems, surgical suites and sterilization systems.
This segment’s products and services are primarily sold to hospitals and medical facilities worldwide
e) Renewable Energy: GE is providing opportunities for renewable energy, particularly wind turbines. GE has acquired technology companies that are focused on renewable energy technologies.
The company will focus on the development of new products that are tailored to solve customer’s challenges with renewable energy.
- f) Leading Solutions & Services: GE is the largest generator of electrical power in the United States of America.
Revenue and Financials of GE:
GE has its headquarters in Boston, Massachusetts, United States where it employs over 174,000 people.
As of December 31, 2020, GE had total revenue of US$79.6 billion, with a net income of US$ 5.230 billion
Competitors of GE:
a) Wells Fargo & Company: Wells Fargo & Company is an American bank which has its headquarters in San Francisco, California, United States.
It is the second largest bank in the United States by market capitalization after JPMorgan Chase & Co.
b) Siemens: Siemens is a Germany multinational corporation that operates in various segments, including energy and healthcare. It has its headquarters in Berlin, Germany.
c) Emerson: Emerson is an American multinational conglomerate based in St. Louis, Missouri, United States.
The company develops, manufactures and distributes industrial products and provides engineering services to a wide range of industries including process control and automation, energy, transportation, building systems and medical.
It has its headquarters in Rosemont, Illinois in the United States
d) Caterpillar: Caterpillar is an American heavy equipment manufacturer which has its headquarters in Deerfield, Illinois in the United States.
It is the world’s largest construction machinery manufacturer.
e) 3M: 3M is an American multinational corporation based in St. Paul, Minnesota, United States. It manufactures products used in daily life including industrial manufacturing, construction, electronics and healthcare.
It has its headquarters in St. Paul, Minnesota
f) Hitachi: Hitachi is a multinational conglomerate company headquartered in Tokyo, Japan. It is the fourth largest company in the world by revenue. Its products include aerospace, land systems, electronics and healthcare.
6. Partners of GE
GE works with a number of partners to foster innovation and improve customer experience. Some of these include:
a) Nest Labs: Nest Labs is a connected home device company which was founded in 2011 by Google’s former senior vice president of hardware Rick Osterloh.
b) Volkswagen: Volkswagen is an international automotive concern founded in 1937. As of 2018, it was the world’s largest selling automobile manufacturer
c) GE Aviation: GE Aviation is a subsidiary of General Electric which provides jet engines for commercial and military planes. It has its headquarters in Evendale, Ohio in the United States.
d) Amazon: Amazon is an American company that operates as an online retailer based in Seattle, Washington, United States.
e) Microsoft: Microsoft is an American multinational computer technology company based in Redmond, Washington.
The company develops, manufactures and sells personal computers (PCs), tablet computers, ultrabook, laptop, and server and Xbox game consoles. It has its headquarters in Redmond, Washington
f) Baker Hughes: Baker Hughes, formerly Baker Hughes Inc., is a multinational oil and gas company that is based in Houston, Texas. As of 2018, it was the world’s second largest producer of oil and natural gas.
7. SWOT Analysis of GE:
A SWOT analysis is an acronym for strengths, weaknesses, opportunities and threats which evaluates the current position of a certain company or object with respect to its environment.
Strengths of GE
a) Strong Financing: GE has a strong financing level through which it can raise capital. The company’s balance sheet is strong enough to support the financing requirements of the organization.
b) Strong Equipment: GE is one of the major producers of equipment in the world, which has been able to build a very strong reputation for its products. This reputation continues to attract customers around the world.
c) Large Scale: GE is one of the largest companies in the world. The company is able to generate a large amount of turnover from its products and services. This translates into high profit margins for GE.
d) Strong Presence: GE is one of the most publicly traded US companies, which enables the company to be present in many countries across the world. The presence of GE in various parts of the world has helped it to gain customers and expand its client base.
e) Trustworthy suppliers: The firm has a large base of reliable raw material suppliers, allowing it to overcome any supply chain bottlenecks.
f) Diversification: The GE is diversified into a number of products and services which have enabled the company to have a strong hold on the market.
g) Consumer Culture: GE has a consumer culture which means that it is more interested in consumer-oriented products and less on the environment. Examples of GE’s consumer culture are its focus on large screen televisions & mobile devices
Weaknesses of GE
a) Expensive Technology: The high technology used in the production of the products manufactured by the company is very expensive, especially for resource-poor countries. This prevents them from using GE’s products.
b) Regulation Issues: GE has faced regulatory issues which could impact its profits. This included the threat of investigation by the US Securities & Exchange Commission over accounting issues relating to financial services provided by GE Capital
c) Dependence on third parties for raw materials can be a concern:
GE relies on third-party suppliers for its raw materials. It has less control over the quality and quantity of supply, and hence is exposed to supply shocks or disruptions
d) Weakness in international markets:
The company has a weak presence in international markets which impairs its growth potential. The government of countries like China and India is also very critical of GE’s products.
e) Technology Risks: GE has a few high-risk products that are prone to technical issues like software failures or power-related failures.
Opportunities of GE
a) The advent of new technologies like the Internet of Things has opened up new avenues for GE to explore. The company can take advantage of these opportunities if it can solve its technological challenges.
b) GE is considered to be one of the biggest investors in clean technology companies.
c) Strong cash flow: GE has a strong cash flow from its investment operations. The high availability of cash allows the company to invest in new businesses and products.
d) Global acquisitions and buyouts to strengthen existing businesses:
GE has been able to acquire several companies in the last few years which have strengthened its position in several markets.
e) An expansion into new verticals that are resource-rich could be advantageous to the company.
f) Growing demand for commercial airplanes:
GE has been able to benefit from the growing demand for commercial airliners. The company has been able to successfully provide new engines for Boeing aircraft which have helped them sell a number of aircraft.
g) A large enough presence in the medical field:
GE is one of the largest healthcare companies in the world and this allows it to play a key role in many markets across the globe.
Threats of GE
a) Device Failure: GE has a number of products that have a high failure rate due to a large number of technical issues. These include compact fluorescent lightbulbs and gas turbines that use software controlled mechanisms.
b) Inflationary pressures: The rising prices of raw materials have been an issue for GE in the last few years, which has adversely affected its performance. Inflationary pressures could also impact GE’s performance.
c) Subsidies: Government subsidies to a few key industries have led to a reduction in the competitiveness of GE. These industries include aviation and power generation. This could lead to a reduction in GE’s performance as these markets become uncompetitive.
d) Technological Failures: GE faces a number of technological failures that can reduce its profits. For example, the engine that powers the Dreamliner aircraft has been plagued by technical problems resulting in delays and higher costs for airlines.
e) Threats from substitute products: GE faces threats from substitute products that are cheaper in price. This could prevent the company from being able to sell its own products in the market.
f) Competition: GE has a number of competitors with a better brand value in the industry. These include companies like Siemens and GEM which have a strong hold in different fields.
This allows them to out-compete GE in the market.
g) Strict Government policies and environmental regulatory norms can affect operations: GE has faced issues which arise from strict government policies and environmental regulations.
These issues can lead to curtailment of GE’s operations in some markets.
a) What does GE actually do?
GE provides a wide range of products and services to various industries all over the world.
The key areas for the company are power generation & energy, transportation, healthcare, and finance.
b) How does GE make their money?
GE makes its profits by providing a wide range of products and services to industries across the globe.
The key areas that have brought GE high earnings include financial services, energy & infrastructure, aerospace & defense, and technology & communications.
c) What kind of Company is GE?
GE is considered to be a large company with high-profile employees that operate in many different markets. It has a large presence in all the markets it operates in.
This includes healthcare, manufacturing, financial services, aviation, and so on.
d) Who are the top management of GE?
The top management of GE includes H. Lawrence Culp Jr. as the CEO of GE responsible for overseeing all business operations at the company.
e) What are GE beliefs?
GE believes in offering customers a wide range of products, services and solutions that transform them into better and more efficient organizations.
This helps the company maintain a competitive edge in the market.
f) What does GE stand for?
GE stands for General Electric.
g) What are GE core values?
The core values of GE revolve around innovation and evolution. They strive to achieve continuous growth and development which is why they invest heavily in the research and development of their products.
h) Where is the headquarters of General Electric?
The headquarters of GE is in Boston, Massachusetts, United States.
i) Why does GE operate on a decentralized basis?
GE operates on a decentralized basis because each business unit has its own profits and losses which are used to determine the company’s profitability.
j) Does GE pay dividends?
On September 10, 2021-The Board of Directors of GE (NYSE: GE) today declared a $0.08 per share dividend on the outstanding common stock of the Company.
k) Is GE a good company to work for?
GE is a good company to work for because the employees enjoy a good working environment. They also receive a large amount of training and development that can help them use their skills effectively at work.
l) Who are the competitors of General Electric?
GE faces competition in the market from a number of large corporations including Siemens, Honeywell International Inc., and United Technologies Corp.
m) How is GE able to maintain profitability?
GE is able to maintain profitability by constantly developing new products that are changing the way industries function.
Through its innovative products, GE is able to maintain a competitive edge in the market while maintaining profitability.