GE-Case Study Case Study Analysis on GE: Case Study

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GE-Case Study

Case Study Analysis on GE:

In this analysis we have used the strategy of Porters generic Model. This model assists us in critically analyzing the performance of General Electric's. This model gives an in depth analysis of the internal performance of the organization. The generic Model of Michael Porter consists of focusing on three main areas; Cost leadership, Differentiation, focused differentiation. It analysis competitive advantage an organization possess. Every organization is unique in its way and adopts different strategies according to their requirement. Similarly GE has adopted a strategy that best fits the organization. Competition plays a vital role in an industry especially for GE. The main issue that is being faced by GE is that of competition. If competition is handled in a positive way it can result in ample amount of success and GE can capture the market share.

Generic Competitive Analysis

General Electric is a growing organization that needs to strategic manage and plan competitive strategies in order to sustain the market. At this point the organization is facing a very turbulent environment in terms of competition and other factors effecting the organization. However, in order to survive such circumstances the organization needs to plan an effective strategy for the organization.

Generic model of Michael Porter focuses on the pricing strategy for an organization. Mainly organizations either follow a cost effective or a differentiation strategy. Cost leadership strategy is to capture a market share by providing customers with low price. However, on the other hand the Differentiation strategy focuses on charging premium price for a product that is difficult to substitute and has unique features.

Emerging in new market like GE it is suggested to follow the cost leadership strategy. This strategy focuses on penetrating the marketing and capture massive market share by introducing low cost product. By offering products at low prices, consumers are more likely to try the product. This technique assists in getting consumers use to a new brand or product. Just like in the case of GE if they are emphasizing on capturing the market of china and India, low price would attract the consumers.

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Consumers are willing to try something that is not domestically made at low price; it gives them an incentive to take the risk on purchasing a new product. Another advantage of cost leadership is that it increases the volume of sales. Low cost products become famous easily and sales are usually high of low cost product. Cost leadership relies on the fact that even though it is being sold at low price if the volume is increased it will cover up for the less price charged by the company. In order for GE to improve its market share and to increase the price of its share that is to increase the value for shareholders it should focus on increasing the sales. As the price of product will go down, consumers will increase and the market share will increase, this will increase the value of GE's share price. Henceforth the shareholders of the company will be glad and the market value of the organization will increase.

When entering a new international market the target audience is broad this supports the implementation of low cost strategy. Whereas, differentiation also falls under broad target, the organization like GE which has a wide range of consumer can also use the differentiation strategy. This strategy focuses on offering something to the consumers that has unique features. Uniqueness can be in terms of anything such as product quality, branding, packing or any attribute associated with the product. GE is entering Indian and Chinese market, they have a wide range of consumers henceforth the strategy of differentiation can be effective. The Culture difference already persists and product differentiation can be accomplished easily.

Many organizations like GE that are involved in products that serve a wide range of consumer and offer a wide range of product line usually get stuck in middle of strategies. Mostly companies are stuck in between cost leadership and differentiation strategy. This results in failure of a company. This….....

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