Question

1) Determine the Corporate Strategy of GE. Be specific and make sure that you list the industries that GE is in

2) Relate your assessment to its sources of competitive advantage.

3) Evaluate the current performance of GE and determine how you would change the corporate strategy of GE.

Answer 1

1. Corporate strategy of GE:

1. Innovation and development: GE spends on its Research and Development in order to attract customers for their unique and creative ideas

2. Diversification: GE has diversified it's business activities in a number of industries like:

Energy, Aviation, Transportation, Healthcare, capital and Home business.

3. Globalization: GE has tried to expand its market and exploit cheaper resources in developing countries in order to increase their profit margins.

2. Sources of competitive advantage:

1. Innovation: constant innovation by the company, attracts the customers and gives the company a competitive advantage edge.

2. Differentiation: Because of differentiation and diversification of its product and services, GE has grabbed monopoly over the global market, as a result of which, the competitors have entry barriers.

3. Commercial Excellence: GE's better performance of business activities and control on every aspect gives commercial excellence as a competitive advantage to the company.

3. Current performance and recommendation:

Though in 2020, GE is going through the financial crisis, still, it is one of the biggest and oldest companies in America and it has many strengths and competitive advantages which are discussed above too.

Though GE is not performing well in oil and gas segments, and in Asian markets, still there are many opportunities for the company like the renewable energy markets, etc.

I would recommend to focus on its opportunities and grab it.