GENERAL ELECTRIC

Alexander Emelyanov
AIBEc, Strategic Management, 2010
 Company
Company
The General Electric Company, or GE, is a
multinational American technology and
services conglomerate incorporated in the
State of New York. In 2009, Forbes ranked GE
as the world's largest company. The company
has 323,000 employees around the world.

Main business
At present the company consists of 5 units:

GE Technology Infrastructure manufactures medical equipment, locomotives,

aircraft engines.
GE Energy includes the production of oil and gas equipment, water treatment and
equipment for energy, including the turbine.
GE Capital includes GE Money Bank and GE Commercial Aviation Services.
GE NBC Universal - world-renowned TV company NBC.
GE Consumer & Industrial is engaged in production of lighting equipment,
equipment for power distribution and uninterruptible power supply.
 History of Company
History 1/2
By 1890, Thomas Edison had brought together
several of his business interests under one
corporation to form Edison General Electric.
1980 At about the same time, Thomson-Houston
Company, under the leadership of Charles A. Coffin,
gained access to a number of key patents through the
acquisition of a number of competitors. Subsequently,
General Electric was formed by the 1892 merger of
Edison General Electric and Thomson-Houston
Company.

In 1896, General Electric was one of the original 12 companies listed on the newly-
formed Dow Jones Industrial Average and still remains after 113 years, the only
one remaining on the Dow.
1910 - the company starts mass production of light bulbs with tungsten filament
(the patent for the use of a filament lamp filaments of refractory metals company
bought by Russian inventor Alexander Lodygin in 1906).
 History of Company
History 2/2
In 1911 the National Electric Lamp Association (NELA) was absorbed into General
Electric's existing lighting business.
1925 - releasing the first household refrigerator.
1928 - opens a broadcasting station and begins the transmission of television
programs.
1942 - is testing its first jet engine.
1947 - starts serial production of automatic washing machines.
 Four Resources
People
The company has a very strong human resource. Because of the high reputation of
the company for people with "brains", the company can hire the best of the best as
academics and business people.

Finance
The company shows a good net profit, also has access to cheap sources of funding.
Stocks of the company appreciated by the market. There is a possibility of funding
through the means of extraction of other businesses.

Physical
Very high level of equipment in all parts of the business. The company takes care
of that production equipment, office space, etc.

Intellectual
The company owns a large number of patents and development used in many
areas of activity. Number of intellectual resources is constantly updated with new
developments, as a result of extensive research base.
 PESTEL
Political
Support various innovations
Support the development of "green" technologies
The danger of falling under the influence of antitrust commission

Economic
Public listed company with high confidence rating
Relatively easy access to financial sources
Leading positions in key business areas
Ability to expand market share in developing countries
The increasing level of competition from younger - flexible companies
Social
The high level of confidence of the population
Well-known and popular brand
Socially responsible policies
Most charitable and educational work
Expectations of the population (large - should help)
 PESTEL
Technological
Very high level of technology
Strong research and scientific base
The need to always be on the first line (the competition - who's first is the
winner)
Environmental
Development of programs for the conservation of the
environment
Increased requirements
Different standards depending on the country
Much attention from the authorities
Legal
Patent Policy
Antimonopoly action
Control of public appearances and comments
 Five Forces
- presence of entry barriers (licenses, patents, copyrights, etc.)
Threat of new entry
-
-
need for expenditures on product differentiation
brand value
- switching costs or sunk (drowning) costs
- starting costs for new players
- access to distribution
- advantages in cost
- expected response of the old players
- government's response and / or other regulators of the market

- low propensity of consumers to buy substitute products

Threat of substitution
- comparison of price and quality of substitute products
- high cost of switching to substitute products for the consumer
- consumer confidence in this product

- not a large number of competitors

Competitive rivalry
- low level of market growth market
- high saturation of the market
- costly barriers to exit from the industry
- increase spending on advertising competition
 Five Forces
Power of Buyer
- large concentration of consumers about the level of concentration of the
company
- high degree of dependence on the existing distribution channels
- growing number of consumers
- high cost of switching customers
- availability of information for consumers
- vertical integration
- availability of existing substitute products
- price sensitivity of consumers
- distinctive advantages of the products of the company (uniqueness)

- low cost of switching suppliers

Power of Supplier
- high degree of differentiation of raw materials and raw materials
- availability of substitutes for suppliers
- threat integration suppliers
 Competitors
Because of the differentiated lines of business of the Company,
it has a huge number of competitors.

Among them are two types:

1. Competitors main profile businesses.

2. Competing with non-core business of the Company.

Honeywell, Siemens AG, United Technologies Corp, 3M Company

Bank of America, JPMorgan,

News Corporation, Viacom, The Walt Disney Company

 M&A

Transactions (announcements)
2008/09
In May 2008, GE announced it was exploring
options for divesting the bulk of its Consumer and
Industrial business.

On December 3, 2009, it was announced that NBC

Universal will become a joint venture between GE
and cable TV operator Comcast. The cable giant will
hold a controlling interest in the company, while GE
retains a 49% stake and will buy out shares currently
owned by Vivendi.
 Strategy of Company

Strategy

Now the company is already the leader, the

leader in many areas of business. It is a global
conglomerate encompassing many areas. The
main strategy of the Company is not so much
growth as the preservation and consolidation of
existing positions.

Strategy options

1. Increase in market share (growth).

2. Creating innovative products (new markets).
3. The preservation and strengthening of the position.

At this stage of growth for the Company is only possible by increasing market
share, and by offering its new (innovative) products to existing customers.
Thank you for your attention!