Strategic Analysis; Tools & Techniques

Running head: STRATEGIC ANALYSIS; TOOLS & TECHNIQUES
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Strategic Analysis; Tools & Techniques
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STRATEGIC ANALYSIS; TOOLS & TECHNIQUES 2
Table of Contents
Introduction......................................................................................................................................3
GE Healthcare Strategic Position....................................................................................................3
GE Healthcare business structure................................................................................................3
GE Healthcare corporate performance.........................................................................................4
GE Healthcare Total asset worth.................................................................................................6
An evaluation of GE Healthcare Resources and Value Systems.....................................................7
General Electric Healthcare Resource analysis...........................................................................7
GE Healthcare core competences and capabilities- A value chain analysis................................8
Value creation and sustenance of global presence.......................................................................8
Promoting learning and research for growth and expansion........................................................9
Sustaining global presence and managing relations..................................................................10
Product differentiation and cost efficiencies..............................................................................10
Evaluation of GE Healthcare Product/Service Portfolio...............................................................11
Evaluation of GE Healthcare potential future strategic growth.....................................................15
Focus on general healthcare industry.........................................................................................15
Research and innovation to enhance growth in GE Healthcare.................................................16
Enhancing presence in emerging markets..................................................................................17
Hastening sales growth through Diagnostic $ Clinical Equipment...........................................18
Conclusion and Recommendations................................................................................................18
References......................................................................................................................................20

STRATEGIC ANALYSIS; TOOLS & TECHNIQUES 3
Strategic Analysis; Tools & Techniques
Introduction
The primary aim of this paper is to present a current strategic analysis of GE Healthcare. It will
analyze various pertinent topics but mainly it will evaluate:
 GE Healthcare Strategic Position
 GE Healthcare Resources and Value Systems
 GE Healthcare Product/ Service Portfolio
 GE Healthcare Future Strategic Growth
GE Healthcare Strategic Position
GE Healthcare business structure
Due to various reasons, in 2016, GE Healthcare relocated its headquarters from UK to Chicago
(Hodsden, 2016). These headquarters carry out eight core functions namely sales, design,
manufacturing, finance, X-ray marketing and distribution, cooperate affairs, and global
acquisition. GE Healthcare has a business structure that supports the immense transitional
changes which are taking place not just in this segment but also in the GE Company as a whole.
This structure defines the configuration and composition of components such as interactions and
interconnections among departments and offices (GE Healthcare, 2019). GE Healthcare’s
business structure has evolved to enable support for diverse operations that are conducted by this
SBU.

STRATEGIC ANALYSIS; TOOLS & TECHNIQUES 4
GE Healthcare corporate performance
GE Healthcare is among the eight Strategic Business Units (SBUs) or Segments of General
Electric Company. Others include venture capital and finance, lighting, oil and gas, digital
industry, additive manufacturing, aviation, healthcare, and power renewable energy (Reuters,
2019). GE Healthcare has employed more than 50,000 employees (Wilen, 2018). It operates in
over 100 countries and in these places, so many stakeholders such as healthcare professionals
and patients benefit from it (PharmaBoardroom, 2018). As of 2018, GE Healthcare
contributed around $ 19.78 billion occupying position three in revenue generation among the
eight SBUs.

STRATEGIC ANALYSIS; TOOLS & TECHNIQUES 5
Source: Statista, 2019, General Electric: revenue by segment 2018. Retrieved from:
https://www.statista.com/statistics/245430/revenue-of-general-electric-by-segment/
Since 1978 to 2018, GE Healthcare has had a steadily rise in levels of revenue. This is shown in
the graph below:
Statista, 2019. General Electric profits in the Healthcare segment 1997-2018. Retrieved from:
https://www.statista.com/statistics/263830/profit-for-general-electric-healthcare-segment-since-
1997/
GE Healthcare Unit is constantly putting in measures to ensure this trend continues for as long as
possible.

STRATEGIC ANALYSIS; TOOLS & TECHNIQUES 6
GE Healthcare Total asset worth
As at 2018, the assets worth of General Electric was approximated to amount to $309.13. Out of
this total, GE Healthcare Segment had contributed about $28.05.
Source: Statista, 2019. General Electric: total assets by segment 2018. Retrieved from:
https://www.statista.com/statistics/261524/total-assets-of-general-electric-by-region/