General Electric And Its Swot Analysis

1458 WordsJul 28, 20166 Pages
In order to be successful in the prevailing business environment, every business organization adopts various strategies. Diversification is also one of the strategies that the organizations adopt in which they expand their business operations on a global scale. In this regard, General Electric 's diversification approach and its potential strengths, weaknesses, opportunities, and threats would be discussed further.// Areas of diversification of General Electric and its SWOT Analysis Diversification refers to the expansion of operations by a company in order to grow outside the industry in which it currently deals. In light of this, the diversification areas of General Electric can be highlighted. GE is an American multinational…show more content…
The strengths of the diversification approach adopted by GE is that it successfully deals in large number of consumer and industrial products like refrigerators, freezers, microwave, gas ranges and others. It is also successfully adding various other segments to its portfolio by investing in more than 12 markets. The weaknesses GE faces are the uncertainty of its earning performance in future and capital assets quality. Further, it also has an alarming level of indebtedness, which can harm its diversification approach. There are various opportunities in the commercial airplane market due to its projected increase in demand. It can also consider diversifying its operation in China to a greater extent due to various operational benefits. The threat it may encounter includes foreign environmental regulations and other jurisdiction of the governments of the countries, where it diversifies. //The above discussion elucidated the area of diversification of GE and evaluation of its diversification approach. The discussion is further extended to have a brief knowledge about the countries where General Electric operates, its competitors and comparison of its strategy with them.// Strategies adopted by Competitors General Electric is currently operating in around 130 countries, which include Africa, Canada, Australia, New Zealand, Germany, the UK, Pakistan, the UAE, Russia, Kuwait, Brazil, Luxembourg
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