Find comprehensive SWOT and PESTLE research reports across industries globally

Holistic Analysis Customized Solutions Top Quality

Please Enter Correct Data! X
Thanks for downloading our report! X
Check your email for the requested analysis report.
Be sure to place support@swotandpestle.com on your approved senders list to prevent emails from going into spam.
Thanks for downloading our sample report! X
Check your email for the requested sample analysis report.
You can also download it here.
Get The Free Sample Complete
SWOT & PESTLE Analysis Report
This report is shared in order to give you an idea of what the complete SWOT & PESTLE analysis report will cover after purchase. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals. We also guarantee that you cannot find matched quality at such competitive and economic pricing.
Great quality, Affordable pricing X

As a leading strategy research portal we invest deep to produce imperial quality reports that can help corporate professionals, academicians and students take their research forward and set a benchmark for high standard business research. The cost for reports has been kept minimal to just cover our operational and maintenance costs although the mission is not to reap monetary benefits. We look forward to your support.

Get Your Free Summary Copy of the
SWOT & PESTLE Analysis Report
Get the summary SWOT & PESTLE.com report delivered straight to your email inbox for free.
Our insightful and holistic reports have helped corporate,academia and researchers to take their research forward. Like us on Facebook to stay updated with the latest published SWOT & PESTLE Report.

General Electric SWOT & PESTLE Analysis

ID : 52360653 | Apr 2018

COMPANY PROFILE - General Electric

Business Sector : Diversified

Operating Geography : Global

About General Electric : General Electric (GE) is an American multinational conglomerate. It was established in 1892. It is headquartered in Boston, Massachusetts. It has a diverse product portfolio which includes oil & gas, power and water, aviation, transportation, financial services, lighting, energy to healthcare. GE is the global leader in power generation and water technologies for utilities. It has operations in 5 continents viz North America, South America, Asia, Africa and Europe in 130 countries. They are also the broad industry leader in oil and gas after merger with Baker Hughes. GE’s market cap is of US$132.42B (FY 2016).It had around 2, 95,000 employees in 2016. It is #11 in World’s Most Valuable brands and #14 in Global 2000 as per Forbes.

General Electric Revenue : $122.1 billion (FY Dec 2017)

Competitive Analysis of General Electric

The SWOT analysis for General Electric is presented below:
Strengths
Weaknesses
1. Strong Performance in Power & Aviation
2. Sound Strategy
3. Significant Expenditure on R&D
4. Solid Brand Presence globally
1. Low earnings in Oil & Gas
2. Weak sales in Transportation
Opportunities
Threats
1. Growth Prospects in Emerging Economies1. Risk due to Global Economic instabilities
2. Risk of Cybercrime Outbreak
3. Operational Risk

* By clicking on "Buy Now" you agree to accept our "Terms and Conditions."
Safe and secure payments

Detailed SWOT Analysis of General Electric

 

Strength

1. Strong Performance in Power & Aviation: In FY2016 GE’s revenue rose by 4% to $4.4 billion in Power and Renewable Energy due to higher capacity additions in renewable energy and acquisition of Alstom. Energy Connections and Lighting also showed positive growth due to increase in Alstom’s profits which rose by 16.8% in FY2016. In power segment revenue rose to $26.8 billion in 2016 and profits rose from $4.5 billion in FY2015 to $5billion in FY2016. In the Aviation segment, unit sale of commercial engines rose by 6.5%, revenue rose to $26.3 billion and profits by $6.1 billion with profit margins grew at 23.3% in 2016.Growth in this segment was driven by new product launches.

2. Sound Strategy: After profits squeezed in the FY2016, GE now intends to reshape its structure by splitting itself into independent trading units and will also sell off around $20 billion of businesses in the next 2 years. This will ensure that they maximize from their diverse product portfolio. They merger of its oil segment with Baker Hughes has yielded 14% growth in revenue worth $33.5 billion, in the third quarter of 2017.GE’s credit card operations may be clubbed with Synchrony Financial. They are also attempting to reduce costs up to US$3.5 billion by inventory management and cutting thousands of jobs and spending costs. Strategic mergers and acquisitions like the alliance with Arenko Group will scale up production and leverage advantage of better technology and realize economies of scale.

3. Significant Expenditure on R & D: General Electric has increased R&D over time to keep pace with the changing global needs. There was a 4% growth in R&D expenditure to 5.5 billion and filed 3000 patents. They have also made sustained efforts to increase productivity in new product development through their 10 Global Research Centres. It also supported the revenue growth in Healthcare segment due to 3.5% increase in its R&D. They have also created a Product Breakout Lab for developing new complex technology. It develops technology that captures more supply chain value and increases their competitiveness.

4. Solid Brand Presence globally: In FY 2016, GE’s international operations contributed around 57% to its revenue with $70 billion business and $230 billion backlog. Its European revenue rose from $16.8 billion to $21.6 billion, recording a 32% growth. It was driven by Alstom’s acquisition. It has strong footing in China where it is leveraging further growth through strategic partnerships, localizing capability, digitalizing its operations and creating local demand. The revenue growth in 2016 was 12% in Middle East, North Africa and Turkey (MENAT) and 35% in India. GE’s total assets rose in Asia by 8.3% and by 12.8% in other global regions.

Weakness

This section is available only in the 'Complete Report' on purchase.

Opportunity

1. Growth Opportunities in Emerging Economies: General Electric has good potential to expand in economies whose economies are growing faster than the world’s GDP growth rate. It includes China which is the second largest economy, Australia, Asia; Canada; Latin America; Middle East, North Africa and Turkey; Russia and CIS; Sub-Saharan Africa; Greater China; South Asia; South East Asia (ASEAN). There are potential gains of expanding especially in power and renewable energy segment as global energy needs and demand is growing. They can also become industry leader in power segment in these economies by increasing market penetration with new technology.

Threat

This section is available only in the 'Complete Report' on purchase.

References

1. https://www.ge.com/investor-relations/sites/default/files/ge_webcast_pressrelease_01242018.pdf

2. https://www.ge.com/ar2016/assets/pdf/GE_AR16_Integrated_Summary_Report.pdf

3. https://www.investors.com/news/ge-cash-crunch-that-hit-dividend-may-get-worse-under-tax-reform/

4. https://www.ge.com/ar2016/assets/pdf/GE_AR16_RiskManagementFactors.pdf

5. http://www.ejinsight.com/20180117-ge-considering-breakup-as-financial-troubles-worsen/

6. https://www.reuters.com/article/us-eu-merck-ge-canon/eu-charges-merck-kgaa-ge-canon-over-merger-rules-idUSKBN19R10R

7. https://www.ge.com/ar2016/assets/pdf/GE_AR16.pdf

The PESTLE/PESTEL analysis for General Electric is presented below:
Political
Economical
1. Impact of Brexit1. Impact of Exchange Rate
2. Impact of economic slowdown
Social
Technological
1. Increase in life expectancy opening up new vistas for GE’s healthcare segment
2. Rise in Social Benefits Costs
1. Industry leading technology in Healthcare
2. Technological Advancements in all Segments
Legal
Environmental
1. Adverse Impact of cut in the US Corporate Tax Rate
2. Legal Compliance scrutiny in every Segment
1. Organization wide sustainable practices
* By clicking on "Buy Now" you agree to accept our "Terms and Conditions."
Safe and secure payments

Detailed PESTLE Analysis of General Electric

 

Political

1. Impact of Brexit: The Chief executive& President of GE has inhibitions about the retention of European employees who may not be allowed to work in its main office in UK post Brexit. This may hurt the talent pool as around 600 employees are not British. Those employees have been trained for catering to the entire European customer base, thus to retain those foreign employees it may even have to increase their wages which would increase cost. Its pharmaceutical and power segment will be impacted the most if UK shuts its borders for foreign workers. Schenectady exports around 90% of steam turbines it produces. With 2000 people in R&D outside UK and 4,500 in Schenectady, administration will become an issue as it had become the centre for administration. Brexit will affect its new operations outside UK and especially France due to Alstom merger.

Economic

1. Impact of Exchange Rate: GE has been negatively affected by the exchange rate movements across it business. Strong US dollar weakened their oil & gas &, energy connections sales revenues. Non-US operations’ total assets fell especially in Europe as Brexit weakened Euro and pound sterling against dollar. Currency fluctuations adversely affected group’s revenues. In 2016 there was a decline of $1.3 billion due to Brazilian real, pound sterling, euro and the Chinese renminbi. Overall earnings stumbled by $0.3 billion and consolidated earnings fell by the same amount in 2016. The impact is significant due to large share of non-US business.

2. Impact of Economic Slowdown: GE is vulnerable to the changes in consumers’ buying behaviours which change with the changing business sentiments of their economy. An economic slowdown may lead to business deterioration and failure of vendors in fulfilling their obligations to GE. Its aviation segment’s performance is correlated with US and international economies’ growth due to its cyclical nature. This may negatively affect the commercial viability of aviation business. There can be collection problems with receivables in emerging economies that are sovereign economies. Sluggish economies will negatively affect GE’s operations, financial position and cash flows. There can also be delays in project setups and pricing pressures.

Social

This section is available only in the 'Complete Report' on purchase.

Technological

This section is available only in the 'Complete Report' on purchase.

Legal

This section is available only in the 'Complete Report' on purchase.

Environmental

1. Organization wide sustainable practices: General Electric has formed a Sustainability Steering Committee to evaluate its sustainability performance. It has undertaken a project “Ecomagination” to reduce the impact of its activities on environment. It has also made $10 billion investment in it for R&D. They do this by using alternate energy sources in its operations. Greenhouse Gas Emissions decreased by 18% and freshwater use decreased by 29% as compared to the 2011 baseline. Carbon emission has fallen to 46,000 tons per year in Rutland site which saved $5.2 million. In Canada’s Petersburg site VOC plummeted 60%.

References

1. https://www.ge.com/investor-relations/sites/default/files/ge_webcast_pressrelease_01242018.pdf

2. https://www.ge.com/ar2016/assets/pdf/GE_AR16_Integrated_Summary_Report.pdf

3. https://www.investors.com/news/ge-cash-crunch-that-hit-dividend-may-get-worse-under-tax-reform/

4. https://www.ge.com/ar2016/assets/pdf/GE_AR16_RiskManagementFactors.pdf

5. http://www.ejinsight.com/20180117-ge-considering-breakup-as-financial-troubles-worsen/

6. https://www.reuters.com/article/us-eu-merck-ge-canon/eu-charges-merck-kgaa-ge-canon-over-merger-rules-idUSKBN19R10R

7. https://www.ge.com/ar2016/assets/pdf/GE_AR16.pdf

* By clicking on "Buy Now" you agree to accept our "Terms and Conditions."
Safe and secure payments

Check out analysis of other relevant companies

Copyrights and Disclaimer

General Electric SWOT and PESTLE analysis has been conducted by Kanupriya Sheopuri and reviewed by senior analysts from Barakaat Consulting.

Copyright of General Electric SWOT and PESTLE Analysis is the property of Barakaat Consulting. Please refer to the Terms and Conditions and Disclaimer for usage guidelines.