General Electric Rivalry

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Identify the economic characteristics of the industry (Porter’s Five Forces Classification)
1. Rivalry In conclusion, GE has high brand recognition, market share, access to assets and competencies and customer loyalty, making it highly competitive within the industry. We can analyze the rivalry as following:
(1) Rivalry with Siemens AG (SI), the biggest competitor General electric is one of the world's largest and most diversified companies. With eleven different segments of the company, ranging from Advanced Materials to NBC Universal, General electric has a strong hold on many separate markets. As a whole, General Electrics' main competitor on a conglomerate level consists of Siemens.
Siemens AG (SI) is a leading diversified …show more content…

(4) Large industry size Large industries allow multiple firms and produces to prosper without having to steal market share from each other. This increases rivalry because more firm must compete for the same customers and resources. 2. Threat of Substitutes
Each company must worry about the threat of new products being created that can make their product obsolete. Every product of General Electric has the threat of substitute. Being very well-diversified means that GE is spreading the risk of failure in every market.
For example, substitution of GE NBC is as easy as viewers switching a channel and advertisers switching networks. This creates a high level of competition that promotes companies to continually have the edge over their competitors.
The technology industry is also an industry prone to threats of substitutions. From the consumer products to their healthcare technologies, everything can be taken over by a newer technology or a more efficient

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