Strategic Management - GE Essay Example | Topics and Well Written Essays - 500 words

Strategic Management - GE - Essay Example However, the company has been faced by law suits and product recalls that affect customer confidence (About Sustainability at the BSR Conference, 2008). GE aims at selecting suppliers with more competitive prices, services, and quality and provides relevant training (Immelt, Govindarajan & Trimble, 2009). In order to remain competitive, GE requires the suppliers to have quality service, and to keep up with the latest technologies. On the other hand, supplier may use take advantage of these requirements their products. The buyers can also influence the profitability of existing enterprises through their ability to lower or increase prices on the products or service. Since GE is the leader in most industries, the bargaining power of the buyers is restricted due to the company great control (Zimmerman, 2010). Even though GE has diversified in various businesses, however, GE has a competitive advantage over other firms due to innovation. The entry barrier in the high-tech industries for new entrants is very high. Thus, it decreases the threats of a new firm, for this reason, risk of replacement is also lower Immelt Talks. Jeff Immelt oriented leadership has changed the internal environment of GE with a lot of positive feedback from the staff (Kenny, 2009). His approach is based on long-term profit growth. This strategy utilizes three stakeholders’ strategic elements such as managing strong trading patterns, increasing growth efforts, and increasing business portfolio (Kaye &Yuwono, 2003). This strategy is based on several factors including customer focus, globalization, growth platforms, technical leadership, and services. GE has currently diversified in various segments including aviation, energy infrastructure, transportation, home and business appliances, healthcare, and GE capital. Diversification has allowed the company to have stock for the long-term. Each of GEs segment provides valuable solutions as well as products to the global economy