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Strategic Analysis of General Electric

General Electric Company (NYSE: GE), or GE, an American multinational conglomerate based in Schenectady, New York and is headquartered in Fairfield, Connecticut, USA. The company has four segments: Energy, Technology Infrastructure, Capital Finance, Consumer & Industrial. In 2011,. GE Fortune in the sixth largest company in the U.S. and the 14 most profitable Other rankings for 2011, # 7 executives (Fortune), # 5 Best Global Brands (Interbrand), # 82 green companies (Newsweek), # 13 most respected companies (Fortune ), and # 19 most innovative firms (Fast Company). GE is a diversified infrastructure, finance and media company in the world's toughest challenges. Aircraft engines and power generation to financial services, medical imaging and television programming, working with more than 100 countries, GE employs 300,000 people worldwide. In 2009, GE delivered solid results despite the tough economic climate with earnings of $11.2 billion. Industrial cash flow from operating activities for the year remained strong at over $16.6 billion. In the light of globalization impact and American Outsourcing Case Analysis study based on American Outsourcing by Richard H.K. Vietor, & Alexander Veytsman we can evaluate the strategies of General Electric as follows:

The 4 Ps of a Business
The company has maintained a culture that produces high-quality products designed to provide best value for the customer.


In recognition of the current global competition, a company involved in the systematic evaluation of the price to ensure that customers receive the optimal value of the products of minimum resources.

The company's ambitious global level of the year to distribute its products to consumers in a very practical way. To achieve this goal, the company opened an office in more than 160 countries, only the products of GE products.

The company places great emphasis on the culture support in order to maximize communication with the consumer. The company's website is regularly updated with modern products, their benefits and how it can be seen to represent. Communication aware, strong and professional customer service (Dennis 1964, p. 26). The company attaches great importance to all stakeholders, including employees and customers to the vast inner workings of the business environment to manage.

Cost Savings
The strategies of many multinational companies to manufacture abroad, pays low wages and accept grants from foreign governments is the consequence of this system along with illegal immigration, has a constant, powerful pressure on the wages and salaries of every U.S. worker from Ph.D. to field laborer.

Free Trade and Open Economy

GE has outsourced to Mexico for the last 108 years and employs approximately 30,000 people. Most of the thirty plants they operate in Mexico, Maquiladora. GE ARC is based mainly directed against the Mexican workers, with the production of everything from engines to light products. Mexico, near the AOS USA offers cheap shipping and travel. This is a clear advantage over outsourcing to China. However, GE has invested about $ 1.5 billion in outsourcing to China,

while about twelve thousand jobs. China was even designated as GE, AOS prime target for international growth in 2002. Outsourcing to China was and is a slightly more advanced than in Mexico. GE strategized to distribution channels to sell securities to develop product-related services to build, and eventually delegate to financial services. They sell and buy goods in China to produce. GE has outsourced to China for electronics & telecom equipments, jet engine services and even medical equipment. GE India found to be useful in terms of human capital, where it employs more than 22,000. They came a very intelligent, educated Indians willing to accept a tiny fraction of what Americans expect. India welcomes U.S. outsourcing that they wanted to vend their software. Different branches of GE India strengthens economic development AOS, spend millions on software development, their leading consumer finance company, GE and State Bank of India itself was the largest provider of Visa cards in India. It is undeniable that GE was an asset to the country, India. But the other two countries is the question. GE, AOS investments for the other two countries to a certain extent, because free trade and open economies are necessities for a country AOS survive. I think the main drawback is the moral issues of mining that have occurred. Of the two, I think that America should stop using Mexico as an outsourcing destination. The nature of the tasks are outsourced to Mexico is not as advanced as the other two, and usually involves hard work, long hours and low wages. Mexico is too dependent on the U.S. economy, and even suffering through the ups and downs of our business cycle.

International marketing to the Company

International marketing is very important to the company's quest to create a high-gain for generating substantial profits. For todays businesses, survival depends on their presence on the global world market (Kotler 2008, p. 29). For such a company to effectively participate in global competition, many efforts to improve the effectiveness of the top management of the company in making important decisions at the right time. GE International markets represent a new market places and regions that are new and which are not supplied with the products the company offers. Expansion is also an important link in the international market, the company needed new sources of raw materials for production lines.

Because GE is a diversified company is also a great need for a broadly variegated that the various products offered by the company define. Marketing is primarily done for all of GE. In the international market, marketing is important to GE because it helps increase awareness of a competitor.

Comparative Advantage
The theory of comparative advantage states that country has a comparative advantage when it can produce a good at a lower opportunity cost than another country; alternatively, when the relative productivities between goods compared with another country are the highest. is perhaps the most important concept in international trade theory. the law of comparative advantage says that two countries (or other kinds of parties, such as individuals or firms) can both gain from trade if, in the absence of trade, they have different relative costs for producing the same goods. Even if one country is more efficient in the production of all goods (absolute advantage), it can still gain by trading with a less-efficient country, as long as they have different relative efficiencies. This law applies to GE as well.

Go Offshore for the Right Reasons

lower costs and the promise of big gains in efficiency and innovation of GE appliances boost GEs efficiency and competitiveness by shaking up operations or improving technology

International Marketing Efforts

The company fundamentally applies two strategies in its international marketing efforts. The first one is signal two investments press and within the market range off company (Gary and Veronica, 2008, p. 18). The first is the ticking of the internal market and investments available to the company (Gary and Veronica, 2008, p 18). This principle of business that the company should be directed staff to use if you want to provide customer-centric.Internal marketing strategies in business

philosophy that explores the potential of employees who touch the outside of the business market (Adcock et al, 2009, p 15). The biggest competitors, has become a widely accepted fact that the strategy does not work effectively in the market if not sold (Kotler and Gary, 2008, p. 91). GE reach its goal of reaching the world, controlling the indoor environment is a prerequisite. The purpose of this strategy is to convert people to adapt to cultivate the culture and relationship marketing. GE has successfully penetrated the international market, beginning with the demands of domestic and foreign market. Following the strategy of GE in the external environment of the organization (Kotler 2008, p. 28). On foreign markets, considered in many ways essential for GE. This market includes an analysis of the economy in general and the market outlook, the company's products. The hunt for foreign markets, the Company considers many factors, including financial, economic, technological, regulatory requirements and business environment. Attention was paid to existing and potential competitors in the external business environment relationships.

GE's strategy to expand its presence in other emerging markets, it was one of the first companies to control China. TCS work in the service of GE China, GE is also working with local Chinese players. Now, you read that GE is dissatisfied with the position of China and reconsider its plans for growth. This is the risk that sellers should take. GE also has business interests in Brazil and other parts of Latin America, and suppliers to the coast or to their presence, or choose not to compete for such business. At a time when vendors go global with their business and customers (albeit few) are becoming increasingly globalized their outsourcing strategy, it would really relevant experience from GE.

Reference(s) List:
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http://money.cnn.com/magazines/fortune/fortune500/2011/snapsho ts/170.html. [Accessed 21st August,2011]. 4. "Fortune 20 most profitable companies: IBM". Fortune. 2011. Available at http://money.cnn.com/galleries/2011/fortune/1104/gallery.fortune5 00_most_profitable.fortune/14.html. [Accessed 20th August 2011]. 5. "GE rankings". Ranking the Brands. Available at http://rankingthebrands.com/Brand-detail.aspx?brandID=82. [Accessed 20.08.2011]

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http://barbradozier.wordpress.com/2010/02/18/a-report-on-theinternational-marketing-strategies-used-by-ge-company [Accessed 21.08.2011] 7. GEs outsourcing strategy written by Sudha. Available at http://blogs.prayag.com/business/business-strategy/gesoutsourcing-strategy/[Accessed 22.08.2011] 8. Comparative Advantage. Available at http://en.wikipedia.org/wiki/Comparative_advantage [Accessed 23.08.2011]

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