SWOT Analysis of General Electric

This post elaborates the SWOT Analysis of General Electric

General Electrics or GE is one of the leading American conglomerates based on New York. The headquarter of GE is in Boston, Massachusetts.  By gross revenue General electronics is the 68th-largest firm in the United States, ranked among the Fortune 500 as the in the year of 2011.

One of the founders of general electronics is the famous scientist Thomas Alva Edison. Other founders are Charles Coffin, Elihu Thomson, and Edwin Houston. It was founded in the year 1892.

The business segments of General Electronics are Power & Water, Aviation, Oil and Gas, Healthcare, Transportation and Capital, Medical devices, Pharmaceutical, Life Sciences, Software Development and Engineering industries, and Automotive.

 

SWOT Analysis of General Electric

Strengths of General Electric

  1. Global Recognition: by the Forbes magazine it was marked one of the  largest corporations in the world and in the year 2011 it gained the position of 68th largest companies in the united states. These gave GE the global recognition which helped to gain competitive advantage.
  2. Highly Diversified Portfolio: because it is operated in the different industries, it has diversified products and services offering.
  3. Historical Background: as one of the oldest company of United States, it gained strong reputations.
  4. Innovative: GE has been offering innovative products and services since the inception.

Weaknesses of General Electric

  1. Breaching Accounting Rules: in the year of 2009 it breached accounting rule. As a result, GE gained negative reputation.
  2. Not Fully Functional in the Asian Market: it has not been fully functional in the Asian market yet.
  3. Difficulties in the Operational Level: as it has been strongly diversified, it is time consuming to make effective decisions sometimes.
  4. Debt Rating: S&P rating degraded GE in the year 2009.

Opportunities for General Electric

  1. Mergers and Acquisitions: has been doing this for past few years. It has been growing bigger day by day. It will grow more in the future.
  2. Research and Development: The R&D department of GE is strong. As the company is capable of making bigger investment, it will be able to offer more innovative profducts in the future.
  3. Growing Market: the market for GE is growin in the countries like India, Australia, Brazil, China whicl will make more sales in the future.

Threats for General Electric

  1. Currency Exchange Risk: as the GE is a global company, a change in exchange rate may affect the total revenue.
  2. World Economic Recession: as a global company, it will be affected by the global economic problems.
  3. Rising Price of Raw Materials: it may affect the production costs require for production which may increase the sale price of its products.

In Conclusion

We conducted General Electric SWOT Analysis. In the internal strategic analysis part, we found equal number of strengths and weaknesses. To grow more in future, General Electric has to develop more strengths. Also, in the external strategic analysis part, we found more opportunities and less threats. To utilize those opportunities, General Electric has to develop more strengths as well.


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faizul

Sheikh Faizul Haque, the founder of GotAbout, graduated from North South University, Bangladesh. His major was Finance and Accounting. Faizul has been writing in business blogs since 2013, also has a strong interest in Behavioral Finance, Risk Management, and Portfolio Management.