Ge: Five Force Analysis of Case Study Essay

The threat of new entry of the firm is somewhat small because the firm is the large party with long and specialized experience. It is difficulty for new entry to complete with existing products and services which need a large amount of investment and cost in order to run the ancestry and develop the products and services. It is rattling difficult for the new entry because GE has a very strong brand and reputation as well as patents and know-how that has the new entry can non be done in the short period in order to compete with GE and other major competitors in this industry.The power of buyers The bargaining power of the buyers is high. This is because, the highly high of switching cost from competitors such as technology industry where the buyers can find the study easily which go away has an impact on them in order to make a decision to get the products. It would benefit of the firm if they can sell a large volume of products. However, there are not all of businesses in GE th at have positive impact from switching cost of buying.The power of provider The firm tends to create long-term relationship with suppliers and most of them are work together in strategical alliance by sharing the knowledge and technology. With this relationship, it is win-win situation that GE and their suppliers will get. Therefore, the bargaining power of supplier is not high since they have become interconnected in term of knowledge and technology. Hence, the suppliers have to fall this opportunity to build the relationship with the firm in order to compete with their business.The threats of substitutes The firm has to concern around the threat of new product being produced which will barrier the business performance. There are more products can take the place of the firm products and services.Competitive rivalry The competition is quite high, because the diversification of the business is high and the number of rivalry in the industry is increasing due to the lucrative prof it which will cause more risk to GE. The main competitors of the firm are Siemens AG and Emerson Electric. Because they are to a fault leading diversified firm as well as General Electric.