Competitive Strategy and Innovation Assignment

COMPETITIVE
STRATEGY &
INNOVATION: GE Case
Study

TABLE OF CONTENTS
INTRODUCTION........................................................................................................... 2
CORE COMPETENCIES AND CAPABILITIES...................................................................2
STRATEGIC OPTIONS ................................................................................................. 5
OUTLINE OF OPTIONS................................................................................................. 6
CONCLUSION.............................................................................................................. 8
REFERENCES............................................................................................................... 9

INTRODUCTION
Competitive strategy has been perceived as critical feature for the organisation as it aids
ensuring that long term objectives are being accomplished effectively. With an assistance of
competitive strategy the business firm can gain better competitive advantage in the industry. It
also allows to gain better position in the market and enhance the ROI. In order to provide better
support to overall development, effective consideration of innovation is also significant
(Schwarz, 2011). It assists in meeting work standards and supports in attaining success. In order
to have better understanding in regard to the subject the work culture of General Electronic
Company is being evaluated in the study. Learning will provide understanding in regard to
strategic options which allow to ensure about sustainable development.
CORE COMPETENCIES AND CAPABILITIES
Based on study, this is evident that General Electronic Company is holding better brand
image in the market which allows to enhance the work opportunities. It is further found that
through appropriate application of varied strategic options the business firm is attaining fruitful
prospects in the competitive market. Further, one of key competency that business holds is
impressive leadership. It allows to ensure that work activities are being managed effectively to
attaining goals (Teece, 2010). It allows to focus on new market accessibility and value added
services of company. Along with this, it can be stated managers are focused towards democratic
leadership. It allows to share information with members in critical manner for achieving goals. It
is found that improved emphasis on leadership aspects allows to reshape the cultural values so
that long term sustainability can be advanced. With an assistance of democratic leadership the
managers are looking forward to advance the innovative culture (Thompson, 2001). Emotional
intelligence within organisation is also being advanced effectively for developing sound
opportunities. Furthermore, it is evident that high level of motivation and high level of work
standards allows to advance the management practice so that growth can be ensured.
External Analysis Of General Electronics As Core Competencies.
In External analysis PESTLE analysis is conducted. PESTL analysis include Political,
Economic, Social, Technological and Legal and Environmental analysis are conducted.
 Political Factor: Government rules and regulations have huge impact on automotive firms
because they are huge obliged by environmental laws and safety rules. Also, custom
duties,quotas trade regulation affect the motor companies marketing from one part of

country to another. If government buys share it has to obey the government rules and
regulation. Political factor have proportionate relationship with core competencies. If
Political factor are supportive core competency of company increases.
 Economic Factor: This company hugely affected by oil price and huge demand of
customer as they want economic solution. Automotive companies have to find solutions
and research on middle solution for high end car or solutions on hybrid cars. So core
competencies of companies rely on economic factor as well.
 Social Factors: General Motors know the need of customers and provide them with high
end vehicles according to their preference, keeping in mind social needs of customers. So
core competencies are strong point of General Motors.
 Technological Factor: As technology is changing in today's world environment GE
motors are using advanced robot technology, and whole production process goes through
automatic computer and advanced software engineering. It is providing latest and
advanced vehicle using technology and getting best competitor in market and highly
advance in core competency.
 Legal factors: Business has to obey rules set in market and violating them can be a huge
panelty by government so it needs to pay attention to environmental and constitutional
laws.
 Environmental factors: As other motor companies , GM has to obey environmental laws,
since 1994 GM is paying huge attention on environment and pollution control laws and
policies. It leads to great core competencies for GM
Core Competencies of GE:
Companies operate in Energy, Technology, Infrastructure, Capital Financing, and
consumer and industrial goods. GE sales multiple of product that span several different
industries. The company produce aircraft, locomotives, and other transportation equipment,
kitchen and laundry appliences, lighting, electric distribution, and control equipments, generator
turbine, and medical imaging equipments. GE offers seven different services in the financial
industry for individual customers.
Table 1SWOT matrix
Strength
There is a vast portfolio of the business of GE.
Weakness