Introduction
GE Power is one of the strategic business units (SBU) of GE, one of the world’s biggest Digital Industrial Companies. In the present, the technology from GE provides one third of the globe’s electricity through the creation and provision of affordable, accessible, reliable, and sustainable power (General Electric, 2018). GE Power was recently merged with GE Energy Connections in June 2017 to become a stronger force, GE Power, which is the largest selling energy and energy techniques company in the globe.
This report aims to analyze GE Power’s strategic position, critically evaluate the resources and value systems of the company, critically evaluate the product/portfolio mix, and critically analyze and evaluate key future directions …show more content…
As a producer, GE power is positively affected as it has leverage to control volumes and dictate profits of suppliers.
• Suppliers have low bargaining power over the producers because of the large number of substitutes, thus positively affecting GE Power.
• A single distributor will have less bargaining power due to the diverse number of channels of distribution, positively affecting GE Power.
Bargaining Power of Customers
• Since GE has established itself as a trusted worldwide brand, certain consumers trust the brand and ultimately are willing to pay more for what it can offer.
• There are a lot of consumers in the power industry, thus customers tend to have low bargaining power.
• Consumers in the industry are less sensitive to prices. Even though prices increase, consumers will still purchase the product.
• Consumers who need special or customized products and services are less than likely to switch to other producers.
Threat of Substitutes
• Because there are a limited number of substitutes in the industry, the customers are not able to find other services or products that can fulfill their …show more content…
The financial resources play an important role as these resources make up the cash, capital, creditors, debtors, and money suppliers such as investors, shareholders, and bankers. Human resources are just as vital as a company’s success lies within its people. The skills, expertise and knowledge of the employees or key people in the organization keep the company sustainable. Physical resources pertain to the company’s buildings, machines, and the production capacity of GE Power. Tthese, as defined, are necessary resources to maintain the company. However, GE’s unique resources are their loyal, experienced, and skilled staff members; their more than a century long expertise in the industry;
GE Power is one of the strategic business units (SBU) of GE, one of the world’s biggest Digital Industrial Companies. In the present, the technology from GE provides one third of the globe’s electricity through the creation and provision of affordable, accessible, reliable, and sustainable power (General Electric, 2018). GE Power was recently merged with GE Energy Connections in June 2017 to become a stronger force, GE Power, which is the largest selling energy and energy techniques company in the globe.
This report aims to analyze GE Power’s strategic position, critically evaluate the resources and value systems of the company, critically evaluate the product/portfolio mix, and critically analyze and evaluate key future directions …show more content…
As a producer, GE power is positively affected as it has leverage to control volumes and dictate profits of suppliers.
• Suppliers have low bargaining power over the producers because of the large number of substitutes, thus positively affecting GE Power.
• A single distributor will have less bargaining power due to the diverse number of channels of distribution, positively affecting GE Power.
Bargaining Power of Customers
• Since GE has established itself as a trusted worldwide brand, certain consumers trust the brand and ultimately are willing to pay more for what it can offer.
• There are a lot of consumers in the power industry, thus customers tend to have low bargaining power.
• Consumers in the industry are less sensitive to prices. Even though prices increase, consumers will still purchase the product.
• Consumers who need special or customized products and services are less than likely to switch to other producers.
Threat of Substitutes
• Because there are a limited number of substitutes in the industry, the customers are not able to find other services or products that can fulfill their …show more content…
The financial resources play an important role as these resources make up the cash, capital, creditors, debtors, and money suppliers such as investors, shareholders, and bankers. Human resources are just as vital as a company’s success lies within its people. The skills, expertise and knowledge of the employees or key people in the organization keep the company sustainable. Physical resources pertain to the company’s buildings, machines, and the production capacity of GE Power. Tthese, as defined, are necessary resources to maintain the company. However, GE’s unique resources are their loyal, experienced, and skilled staff members; their more than a century long expertise in the industry;