Question

As you will see in the case, GE has had a succession of top management who each brought their particular experiences/skills to the position, putting their own stamp on the strategic direction and resulting success of the company.

Mr. Immelt’s decision to divest GE Capital will result in a need to reinvest large amounts of capital; it represents a major opportunity to reset the direction of the company.

What are GE’s target markets?

Which, if any, of these target markets are key to future growth?

What courses of action would you recommend to Mr. Immelt?

What additional questions would you urge to be explored?

Be precise; support your reasoning for each question.

Answer 1

General Electric is world biggest companies in the engineering solution for technical products. General Electric is very well known for creating reliable products and providing Engineering solutions at a better cost.
General Electric is targeting energy segment as well as Engineering solutions which is its target market. Marketing in developing countries like India and Bangladesh as well as Pakistan and China, general Electric has been very successful in providing different services in these specific countries. Its target market is totally dependent on the total need of the revenue generated from the specific countries and to improve the overall market situation.

For understanding future growth of General Electric and possible opportunities we have to carry out a SWOT analysis.

SWOT analysis for General Electric.

Strength

General Electric has a very wide span of product Rangers. It starts from aviation to the consumer electronics, motors, finance, energy generation, healthcare, lighting, software as well as oil extraction. All of these are a part of the diverse portfolio. They have a very well balance revenue screen from different sectors and the business is globally expanded. This definitely helped general Electric to grow prominently in the specific market in different fields. They are mainly focusing on globalisation and most of their business is out of their parent country which provides a balanced revenue generation from different parts of the globe.

Weaknesses

General Electric relies on third parties for supplying materials to them. This year Reliance definitely degrees is the overall revenues which have been generating through their different channels. Dependency is also create a concern of raw materials and also provides a caution to the visibility of the raw materials in the specific time. It has a strong target by other competitors as the working structure of General Electric is very huge.

Opportunities

Global acquisitions as well as a strengthening the business by expanding the business to the developing countries is one of the most important opportunities for General Electric. Emerging economies are the biggest scope for the company to specifically provide their services and to earn more and more credit from these countries. They also have new possibilities of implementing oil pipelines into different countries for increasing their overall revenue generated from different countries.

Threats

Strict environmental policies as well as changing government policies are also bigger threat for General Electric. Economic and political risk are very large as the working structure of the organisation is enormous in terms of global work structure. Information Technology kal Threads are also available for the company to influence their overall working pattern and to diminish there security. Fluctuation in currencies and the Global economic recession is also a main reason for affecting their Global Business.

As per the above analysis we can see that understanding of different environments as well as having a proper leadership skill is very necessary for General Electric to be productive in different markets. Mr immelt should focus on creating better brand strategy by applying different new an innovative ideas to be more productive in this specific countries. Renewable energy sources are considered at a primary level at the current time. Capturing winter wine market could be very beneficial for General Electric and it could also provide better understanding of different markets for improving their products and being dominant in that specific segment.