General Electric (GE) operates in the diversified machinery industry, which faces high rivalry among existing competitors and threats of substitution. GE has strengths in its leadership position, research and development capabilities, and brand recognition. However, it faces external threats such as increasing competition and changing market conditions. To address these threats, GE could leverage its strengths to minimize risks through strategies like partnering with automakers to develop customized plastic headlamps and expanding its direct sales team to strengthen customer relationships.

1. General Electric
Natasha Mayhew

2. Market Share- Diversified Machinery
GE
C
PHG
SI
Industry

3. Five Forces
• Rivalry Among Existing Competitors: high risk
▫ Engineering material suppliers were facing increased
competition
▫ Attracted to the higher margins available and
expiration of many U.S. company patents
▫ Many major suppliers of engineering plastics
• Threat of new entrants: low risk
▫ GM- largest automotive company in the world, 60% of
the American market. Ford Motor Company- second
largest with 25% of the American market.
▫ 75 percent of polycarbonate market is held by Bayer &
GE

4. Five Forces
• Bargaining Power of Suppliers: low risk
▫ GEL is integrated, only lighting device
manufacturer that make most of its own glass for
its products
▫ GEL is the largest supplier of “light bulbs”
• Bargaining Power of Buyers: high risk
▫ Headlamps are demanded in different shapes and
sizes for each vehicle
▫ Price sensitive market

5. Five Forces
• Threat of Substitutes: high risk
▫ Ongoing R&D
▫ Plastic is replacing glass now but what about the
future
▫ Ivory was also replaced

6. PESTEL
• Political
▫ Meet standards
▫ Safety regulations
• Economical/Financial
▫ Polycarbonate is 50-100 percent more expensive
than acrylic
▫ Average income has been rising (see next slide)
▫ Unemployment rate: 7.2%

7. Economical/Financial
25,000
25,500
26,000
26,500
27,000
27,500
28,000
28,500
29,000
29,500
1 2 3 4 5
Median total income for Canada- 2006-2010

8. • Socio-cultural
▫ Growing economy
▫ Consumers growing towards “green” products

9. Socio-cultural
Estimated births in Canada
368,000
370,000
372,000
374,000
376,000
378,000
380,000
382,000
384,000
2007/2008 2008/2009 2009/2010 2010/2011 2011/2012

10. • Technological
▫ Engineering plastics require much more technical
support than the typical distributor can provide
▫ R&D

11. • Legal
▫ The U.S. Department of Transportation (DOT)
and its component National Highway Traffic
Safety Administration maintain safety standards
in the industry
▫ The Society of Automotive Engineers create
voluntary performance standards and DOT
adapted many of these standards as regulations

12. • Ecological
▫ Glass headlamps are a safety issue
▫ Hundreds of elephants were killed everyday to
obtain the ivory for billiard balls

13. TOWS
• External Opportunities
▫ Demand for greater diversity in headlamps appearance was increasing
▫ PSC
▫ Expected growth of more than 8 percent per annum in polycarbonates
▫ Partnering options
• External Threats
▫ Fuel costs
▫ Increased competition
▫ Changing market environment
▫ Legal requirements
• Internal Strengths
▫ Leader in the industry
▫ R&D
▫ Brand recognition
▫ Strong customer relationships
• Internal Weaknesses
▫ Cost to produce plastic headlamps
▫ Risk

14. TOWS
• Maxi Mini
▫ Use internal strengths to minimize external
threats
 They are the leading competitor in the industry but
there is the threat of increased competition and a
changing market. By minimizing the external threats
will increase their opportunities in the long-run.

15. Product Life Cycle
• Engineering plastics
▫ Nearing the end of the growth stage
• Bayer
▫ Early stage of establishing its brand

16. Brand Analysis
• Promise
▫ “delivering high-performance products and
services to solve our customers' most pressing
challenges.”

17. • Visuals
Blue & White: representing trust
dependable & strength

18. Channel Analysis
• Sales Promotion
• Public Relations
▫ GEP arranged a meeting with DOT to discuss a
new, safe headlamp idea
▫ GEP and Ford sat down for dinner to discuss
partnering options
▫ Bayer- using PR to inform target customers
• Personal Selling
▫ Prototype plastic headlamps
▫ Field market development
▫ Direct sales team
▫ Expansion in human resources

19. Channel Analysis
• Advertising
▫ Facebook
▫ YouTube
▫ TV advertisements
GE Advertisement

20. Buying Centre
• Organization’s Needs
▫ Goals & Objectives
• Individual’s Needs
▫ Attention centred on the people at the car
companies who were responsible for the way a car
looked and sold

21. Buying Centre
• Internal Factors
▫ Revolving technology
▫ Legal requirements
▫ Direct sales team
• External Factors
▫ Customers demand for new products

22. Customer Relationship Management
• Changing the headlamps changed the customers
▫ The new customers were those who would value
the benefits of the differentiation of the design and
style of cars
• Use direct sales to create valuable relationships
among customers rather than distribution

23. Value Chain Analysis
Inbound
Logistics
•Integrated
•Leader
•High quality
brand
recognition
R&D
•Innovative
•Ongoing
R&D
Product
•Customized
Plastic
headlamps
Marketing &
Sales
•Direct Sales
team
•High
customer
service
Service
•Immediate
recognition
to evolving
needs
Operations
•America
•Large
supplier of
engineering
plastics
Firm
Infrastructure
•Global
•Internal
supplier
Human
Resources
•Expansion in
human
resources
Technology
•Strong focus
on R&D
•Plastics
require more
complex
technologies
Procurement
•Growth
through
acquisition

24. References
• http://www.statcan.gc.ca/daily-
quotidien/130510/dq130510a-eng.htm
• http://www.statcan.gc.ca/tables-tableaux/sum-
som/l01/cst01/famil105a-eng.htm
• http://www.statcan.gc.ca/tables-tableaux/sum-
som/l01/cst01/demo04a-eng.htm
• http://ca.finance.yahoo.com/q/co?s=GE
• http://www.ge.com