General Electric – Home Appliances
Objective: To do the 5 C’s analysis that can be used as a tool for Situation Analysis for General Electric company in the Home Appliances market and to do the SWOT analysis.
Introduction
General Electric Company (GE) was founded in 1892 and is based in Fairfield, Connecticut. It operates as a technology, media, and financial services company worldwide. Its Consumer & Industrial segment sells and services major home appliances including refrigerators, freezers, electric and gas ranges, cook-tops, dishwashers, clothes washers and dryers, microwave ovens, room air conditioners, and residential water systems for filtration, softening and heating.
The aggregate level of economic activity in markets for such products and services generally lags overall economic slowdowns as well as subsequent recoveries. In the U.S., industrial markets are undergoing significant structural changes reflecting, among other factors, increased international competition and continued commodity cost pressures(2). Consumer & Industrial segment is particularly sensitive to changes in economic conditions. Reflective of the downturn in the U.S. housing market, Consumer & Industrial revenues have declined over the three-year period. In response to these tough economic conditions, in 2007, Consumer & Industrial began a restructuring plan focused on reducing manufacturing capacity and transferring work to lower-cost countries. Despite these cost reduction efforts, segment profit declined on higher material and other costs(3).
Situation Analysis
In order to profitably satisfy customer needs, GE must understand its external and internal situation, comprising of the company, collaborators, customer, context and competitors.
Customer
The customers of Home Appliances products are earning adults who own a house, restaurants or small businesses. Children or non-working adults are not the customers of home appliances market.
The following demographic factors can have an effect on the
Introduction
General Electric Company (GE) was founded in 1892 and is based in Fairfield, Connecticut. It operates as a technology, media, and financial services company worldwide. Its Consumer & Industrial segment sells and services major home appliances including refrigerators, freezers, electric and gas ranges, cook-tops, dishwashers, clothes washers and dryers, microwave ovens, room air conditioners, and residential water systems for filtration, softening and heating.
The aggregate level of economic activity in markets for such products and services generally lags overall economic slowdowns as well as subsequent recoveries. In the U.S., industrial markets are undergoing significant structural changes reflecting, among other factors, increased international competition and continued commodity cost pressures(2). Consumer & Industrial segment is particularly sensitive to changes in economic conditions. Reflective of the downturn in the U.S. housing market, Consumer & Industrial revenues have declined over the three-year period. In response to these tough economic conditions, in 2007, Consumer & Industrial began a restructuring plan focused on reducing manufacturing capacity and transferring work to lower-cost countries. Despite these cost reduction efforts, segment profit declined on higher material and other costs(3).
Situation Analysis
In order to profitably satisfy customer needs, GE must understand its external and internal situation, comprising of the company, collaborators, customer, context and competitors.
Customer
The customers of Home Appliances products are earning adults who own a house, restaurants or small businesses. Children or non-working adults are not the customers of home appliances market.
The following demographic factors can have an effect on the