1. GENERAL ELECTRIC
Laura, Ashley, Isis

2. AGENDA
• Introduction
• General Electric (GE)
• GE Business Units
• Modified SOWT Analysis
• GE Update
• Conclusion
• Recommendations
• Quiz

4. GENERAL ELECTRIC
• CEO: Jeffrey Immelt
• 2010, GE ranked #1 in healthcare and #19 overall on Fast
Company's list of the world's top 50 most innovative companies.
• In 2010, GE was named in Ethisphere's list of the world's most
ethical companies.
• In 2010, GE was named in Business Week's list of the world's 25
most inventive companies.
• In 2010, GE ranked among Fortune magazine's listing of the Most
Admired Companies in the World for its 5th consecutive year.
• Fortune ranked GE among its list of the world's top companies for
leaders.

5. GENERAL ELECTRIC
Business Units
Aviation Energy Finance Consumer
Media &
Oil & Gas Water
Entertainment
Consumer
Finance Business
Electronics
Healthcare
Rail Appliances
Software & Electrical
Lighting
Services Distribution

6. VIDEO

7. Brief Case Introduction
• General Electric Medical Systems a Division of General Electric
• President: Joe Hogan
• Began in the 1940’s
• Market Leader in all regions: Americas, Europe/Africa, & Asia

9. STRENGHTS
• Training Programs
• Low-Cost Manufacturing
• Centers of Excellence (COE)
• Long-term Relationships
• Global Supply Chain Management

10. CENTER OF EXCELLENCE
(CEO)

11. GLOBAL SUPPLY CHAIN

13. WEAKNESSES
– Global marketing activities
• Products customization
• Marketing of used products
• Marketing newer generations of products and services
(Healthcare IT).
– Long sale process nature.
– High fixed costs.
– High investment in the development of new products
– Saturated market which conducted to low rates of market growth.
– Low levels of product differentiation and the introduction of the concept of se
rvice was one of the few sources of differentiation.
– Development of suppliers in low-cost countries.

15. OPPORTUNITIES
• Personalized Medicine
-Genomics and Healthcare
Information Technology (IT)
• Customer Relationship Management
• After-Sales Services
• Used Equipment Buying Program
• Management through Diversity
• Talent Retention and Attraction
• Acquisition of Chinese Assemblers

17. Threats
• Competitors
• Government Regulations
• Economic Conditions

19. STRATEGIC GAP
• CHANGING THE BUSINESS MODEL?
• The Global Product Company (GPC)
– GPC’s philosophy was to concentrate manufacturing-and ultimate other
activities- wherever in the world it could be carried out to GE’s exacting
standards most cost-effectively.
– Should the company modify GPC by adopting an “In China for China” p
olicy so as to focus squarely on the Chinese market?
• Technological changes  personalized diagnostics
– Genomics and healthcare information technology

21. Alternatives PROS CONS
- Aging and Growth rate - Reduction of Prices
of Population - Low Prices Strategy
- Economic of Scales
"In China for China" - Reputation of GEMS
- Low Cost Labor Force
- Not enough suppliers
Modifying the GPC - Low Fixed Cost - Competitors in the
-Market Gain Market (Siemens)
business model to be
- A great number of
- Good Government assembler and trading
introduce in the
Relationship Chinese Companies
Chinese Market. - Access to Cheap - Competition among
Materials GEMS teams to
become the “Center of
- Exports Opportunities
Excellence”
- Governmental
Regulations.

23. Alternatives PROS CONS
- Update with Market -Swift of Human
Changes. Resources Expertise
Introducing Genomics - Medicine of the Future -Slow Return on
Investment
Diversification - Easy Capture of
Talented Biomedical -Difficult Regulatory
Future-Oriented Process
- Accomplishing
diversification strategy -Require
strategy Pharmaceutical
- Reduce numbers of collaboration
competitors
-Ethical Issues
- Opportunity to develop
new services and
equipments 20% high
operating Margin

24. Alternatives PROS CONS
-High Investment in
- Be ahead of Research and
Competitors Development
- Achieve a Competitive -Developing strong
Advantage. relationship with
customer is costly
- Accomplishing
Developing Innovation -Developing new Sales
Healthcare IT
Strategies for this
- Diversification Strategy different business unit
demand time and more
sales force.
-Fragmented Market
due to Competitors
participation

25. Alternatives PROS CONS
- Profitable Market - Reputation of GEMS
Opportunity
-Ethical issues
-Opportunity to develop
Maintenance Service - Customers willing to
Program pay for used equipments
Used Equipment - Alternatives Sales - Strong Customer
Profitable Market Options for those cost Relationship is needed
Development efficient Customer focus to accomplish this
strategy
- Capture of a new
Market focused in used - Sophisticated
equipment Information System to
manage the market
- No competition from
World Leaders in
Healthcare.

26. Alternatives PROS CONS
- Increase profitability - Require more Human
through services fee Resources (technicians)
- Develop strong - Acquisition of an
customer relationship efficient and effective
CRM system
Developing a Strong - Customer Retention
Service and - Customer Service is
Reparation - Diversification Strategy one of the most difficult
Program/Modifying departments to manage
GEMS general and coordinate
Business Strategy
- Ineffective Customer
Service would reduce
GEMS general
reputation in the market.

27. EXPLORING OTHERS POTENTIAL
INDUSTRIAL MARKETS IN ASIA
India
 Industry average was expected to grow at 13% annually but some of
the cons is that this country has really
• Poor healthcare insurance coverage and the economic conditions
were not satisfactory for investment at the time of the case,
moreover 75% of healthcare expenses were paid by out-of-pocket of
individuals.
Japan
 provided universal healthcare coverage to its population.
• Japan’s Hospitals were in their majority government owned and
funded with a global budget.
Russia
 Because it was effectively located in Asia that would allow easy
exports to other Asian countries but certainly it is not most beneficial
than China.

29. UPDATE
– General Electric Healthcare.
– Focused on a transformational medical technology.
– Acquired the genomics business area .
– Oriented to a prediction, information, and treating disease process.
– Developing biopharmaceutical manufacturing technologies.
– John Dinen is the formal president and CEO of this healthcare division.
– Continuity Management.
– Headquarter is located in the United Kingdom.
– $ 17,000 billion unit of GE company.
– Presence in more than 44 countries including all the continents.
– Presence in South America (Colombia, Chile, Argentina, Brazil, Peru,
Venezuela, etc).

31. CONCLUSIONS
• Changes in the industry
– Creation of GEMS  Selling products abroad  Design and production
• Services as an opportunity for business diversification and differ
entiation
• The core competencies of the company are presented by the fo
llowing elements.
– Value chain management
– Innovation
– Management of global operations.
• Successful acquisition policy.
• General Electric manages its worldwide long term relationships
based on the concept of creating value.
• Cost reduction
– Use of suppliers out of low cost counties
– Economies of scale
• GEMS global strategy was influenced by the technological deve
lopment worldwide.

32. CONCLUSIONS
• Competitors were far behind GEMS in terms of profitability, mar
ket share and innovation, but the fact that they accept often lowe
r margins keeps cost pressure for GEMS alive.
• GEMS developed a complex and efficient business strategy th
at allowed them to be ranked as the world’s leading company in
healthcare technological equipment.

34. RECOMMENDATIONS
• To reduce costs not just by moving operation facilities to low
cost countries, but also by outsourcing other components of
the value chain.
• To continue enhancing operations on developing markets.
• To use information technology tools and after-sales services
in order to create customized options for customers. For exa
mple, developing Healthcare IT.
• Diversify the lines of services offered, for instance by the intr
oduction of reparation services as part of the services depar
tment.
• To implement innovative adding value strategies, such as “g
reen” actions, in order to differentiate from competitors.
• Introducing Genomics as a long term strategy more focused
on biomedical science than in the engineering science.