SWOT Analysis of General Electric (GE)
This is a comprehensive SWOT analysis of General Electric (GE). It aims to provide the readers with insights into some of the strengths and the weaknesses of General Electric. It also sheds lights on several opportunities that the company should consider for future growth and the threats that it should devise formidable strategies against. The General Electric is an American multinational company, headquartered in Boston, the USA.
Strengths of General Electric (GE)
General Electric has a substantial market experience. It was founded by Thomas A. Edison in 1889. It is very well known for its work in power, renewable energy, healthcare, and aviation industries. It works around its new purpose which is “We raise to the challenge of building a world that works” (General Electric, 2021).
GE has a number of subsidiaries across many industries e.g. GE Aviation, GE Capital, GE Global Research, GE Healthcare, GE Home and Business Solutions, GE Oil and Gas, GE Power and Water and GE Transportation. It has presence in over 170 countries and invested heavily in emerging markets. Its products and solutions are used by over 64,000 commercial and military airplanes, 45,000 onshore wind tribune, 7700 gas tribunes, and over four million healthcare installations (General Electric, 2021).
General Electric was awarded the Engineering Service Provider of the Year award in 2018 the by Delhi International Airport Limited (DIAL). Two of its employees won Nobel Prize due to their contributions in their fields. General Electric was one of the first twelve companies to debut on the Dow Jones Dow Jones on May the 26th, 1896 alongside companies like American Sugar and American Tobacco.
The revenue of General Electric has remained stable over the last several years which is evidenced from the fact it was over 95 billion US dollars every year. It generated over 15.7 billion revenues in 2020 in Europe. It is worth mentioning that USA is the largest market for the company followed by the Asian market (Mazareanu, 2021).
Weaknesses of General Electric (GE)
One of the main problems that General Electric has faced in recent times is the huge amount of debts. It is estimated that its total debt is around $104 billion. Similarly, the power arm which is responsible for almost one fifth of its revenues, did not perform very well recently. It is worth mentioning that though the company’s revenue was very stable in the last many years, it dropped substantially in the 2020 because of the global lockdown crisis.
The company has been mismanaged for decades. It has been going in the wrong direction for many years. Many analysts argue that it got itself stuck in turmoil because of a number of questionable deals, needless complexity, and muddy accounting. Its corporate image was also affected by a number of controversies.
Opportunities for General Electric (GE)
There are so many growth opportunities for a mega company such as GE. For instance, as both Airbus and Boeing are accelerating their production of different aircraft, GE’s Aviation segment which makes aircraft engine is going to benefit greatly from it (Team, 2021). Similarly, there is huge potentials for the company in the field of artificial intelligence and robotics.
Threats to General Electric (GE)
Threat is the last topic of focus in the SWOT analysis of General Electric. As the company operates globally, it faces fierce competition from a number of global names such as Siemens, 3M, Hitachi, Emerson, Philips, United Technologies, Schneider Electric, and Pratt and Whitney.
Penalties and lawsuits may also turn out to be costly. For instance, General Electric was fined $200 million in 2020 by the US Securities and Exchange Commission for misleading investors concerning its power and insurance businesses (Feuer, 2020).
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Last update: 17 June 2021
Feuer, W. (2020) General Electric agrees to pay $200 million SEC fine for misleading investors, available at: https://www.cnbc.com/2020/12/09/general-electric-pays-200-million-sec-fine-for-misleading-investors.html (accessed 17 June 2021)
General Electric (2021) About us, available at: https://www.ge.com/about-us (accessed 10 June 2021)
Mazareanu, E. (2021) General Electric’s revenue from FY 2015 to FY 2020, available at: https://www.statista.com/statistics/263828/revenue-of-general-electric/ (accessed 15 June 2021)
Team, T. (2021) What’s next for General Electric stock after a 7% rise? available at: https://www.forbes.com/sites/greatspeculations/2021/06/03/whats-next-for-general-electric-stock-after-a-7-rise/?sh=35bccd046085 (accessed 8 June 2021)
Author: Joe David
Joe David has years of teaching experience both in the UK and abroad. He writes regularly online on a variety of topics. He has a keen interest in business, hospitality, and tourism management. He holds a Postgraduate Diploma in Management Studies and a Post Graduate Diploma in Marketing Management.