General Electric vs. Westinghouse in Large Turbine Generators (A) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of General Electric vs. Westinghouse in Large Turbine Generators (A)
Describes the U.S. large turbine generator industry in early 1963, a period of severe price cutting and depressed industry conditions. Presents data to allow a structural analysis of the industry and an analysis of the strategies of the major players since 1946. The major teaching issue is the process of competitive rivalry in an oligopoly market, particularly the problems of deescalating in a situation of market warfare. This industry is one where the conditions for avoiding warfare are difficult. Subsidiary teaching issues include the structural analysis of capital goods markets and strategy for the market leader in areas like pricing, rate of technological change, and customer focus. After understanding the industry structure, the discussion should turn to what GE can do to extricate itself from the disastrous price cutting afflicting the industry.
Swot Analysis of "General Electric vs. Westinghouse in Large Turbine Generators (A)" written by Michael E. Porter includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Warfare Turbine facing as an external strategic factors. Some of the topics covered in General Electric vs. Westinghouse in Large Turbine Generators (A) case study are - Strategic Management Strategies, Change management, Competition, Customers, Financial markets, Pricing, Regulation, Technology and Strategy & Execution.
Some of the macro environment factors that can be used to understand the General Electric vs. Westinghouse in Large Turbine Generators (A) casestudy better are - – increasing inequality as vast percentage of new income is going to the top 1%, there is backlash against globalization, customer relationship management is fast transforming because of increasing concerns over data privacy, there is increasing trade war between United States & China, talent flight as more people leaving formal jobs, geopolitical disruptions, cloud computing is disrupting traditional business models,
technology disruption, banking and financial system is disrupted by Bitcoin and other crypto currencies, etc
Introduction to SWOT Analysis of General Electric vs. Westinghouse in Large Turbine Generators (A)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in General Electric vs. Westinghouse in Large Turbine Generators (A) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Warfare Turbine, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Warfare Turbine operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of General Electric vs. Westinghouse in Large Turbine Generators (A) can be done for the following purposes –
1. Strategic planning using facts provided in General Electric vs. Westinghouse in Large Turbine Generators (A) case study
2. Improving business portfolio management of Warfare Turbine
3. Assessing feasibility of the new initiative in Strategy & Execution field.
4. Making a Strategy & Execution topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Warfare Turbine
Strengths General Electric vs. Westinghouse in Large Turbine Generators (A) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Warfare Turbine in General Electric vs. Westinghouse in Large Turbine Generators (A) Harvard Business Review case study are -
Highly skilled collaborators
– Warfare Turbine has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in General Electric vs. Westinghouse in Large Turbine Generators (A) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Ability to lead change in Strategy & Execution field
– Warfare Turbine is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Warfare Turbine in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Training and development
– Warfare Turbine has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in General Electric vs. Westinghouse in Large Turbine Generators (A) Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Diverse revenue streams
– Warfare Turbine is present in almost all the verticals within the industry. This has provided firm in General Electric vs. Westinghouse in Large Turbine Generators (A) case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Superior customer experience
– The customer experience strategy of Warfare Turbine in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Ability to recruit top talent
– Warfare Turbine is one of the leading recruiters in the industry. Managers in the General Electric vs. Westinghouse in Large Turbine Generators (A) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Warfare Turbine digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Warfare Turbine has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Innovation driven organization
– Warfare Turbine is one of the most innovative firm in sector. Manager in General Electric vs. Westinghouse in Large Turbine Generators (A) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Effective Research and Development (R&D)
– Warfare Turbine has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study General Electric vs. Westinghouse in Large Turbine Generators (A) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Operational resilience
– The operational resilience strategy in the General Electric vs. Westinghouse in Large Turbine Generators (A) Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Organizational Resilience of Warfare Turbine
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Warfare Turbine does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Learning organization
- Warfare Turbine is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Warfare Turbine is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in General Electric vs. Westinghouse in Large Turbine Generators (A) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Weaknesses General Electric vs. Westinghouse in Large Turbine Generators (A) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of General Electric vs. Westinghouse in Large Turbine Generators (A) are -
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Warfare Turbine is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study General Electric vs. Westinghouse in Large Turbine Generators (A) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Slow to strategic competitive environment developments
– As General Electric vs. Westinghouse in Large Turbine Generators (A) HBR case study mentions - Warfare Turbine takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the General Electric vs. Westinghouse in Large Turbine Generators (A) HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Warfare Turbine has relatively successful track record of launching new products.
No frontier risks strategy
– After analyzing the HBR case study General Electric vs. Westinghouse in Large Turbine Generators (A), it seems that company is thinking about the frontier risks that can impact Strategy & Execution strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
High cash cycle compare to competitors
Warfare Turbine has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Capital Spending Reduction
– Even during the low interest decade, Warfare Turbine has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study General Electric vs. Westinghouse in Large Turbine Generators (A), is just above the industry average. Warfare Turbine needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
Interest costs
– Compare to the competition, Warfare Turbine has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Aligning sales with marketing
– It come across in the case study General Electric vs. Westinghouse in Large Turbine Generators (A) that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case General Electric vs. Westinghouse in Large Turbine Generators (A) can leverage the sales team experience to cultivate customer relationships as Warfare Turbine is planning to shift buying processes online.
Lack of clear differentiation of Warfare Turbine products
– To increase the profitability and margins on the products, Warfare Turbine needs to provide more differentiated products than what it is currently offering in the marketplace.
Increasing silos among functional specialists
– The organizational structure of Warfare Turbine is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Warfare Turbine needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Warfare Turbine to focus more on services rather than just following the product oriented approach.
Opportunities General Electric vs. Westinghouse in Large Turbine Generators (A) | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study General Electric vs. Westinghouse in Large Turbine Generators (A) are -
Building a culture of innovation
– managers at Warfare Turbine can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Strategy & Execution segment.
Creating value in data economy
– The success of analytics program of Warfare Turbine has opened avenues for new revenue streams for the organization in the industry. This can help Warfare Turbine to build a more holistic ecosystem as suggested in the General Electric vs. Westinghouse in Large Turbine Generators (A) case study. Warfare Turbine can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Buying journey improvements
– Warfare Turbine can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. General Electric vs. Westinghouse in Large Turbine Generators (A) suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Leveraging digital technologies
– Warfare Turbine can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Warfare Turbine can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, General Electric vs. Westinghouse in Large Turbine Generators (A), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Warfare Turbine can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Low interest rates
– Even though inflation is raising its head in most developed economies, Warfare Turbine can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Warfare Turbine can use these opportunities to build new business models that can help the communities that Warfare Turbine operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Using analytics as competitive advantage
– Warfare Turbine has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study General Electric vs. Westinghouse in Large Turbine Generators (A) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Warfare Turbine to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Strategy & Execution industry, but it has also influenced the consumer preferences. Warfare Turbine can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Warfare Turbine can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Strategy & Execution industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Warfare Turbine can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Warfare Turbine can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Warfare Turbine in the consumer business. Now Warfare Turbine can target international markets with far fewer capital restrictions requirements than the existing system.
Threats General Electric vs. Westinghouse in Large Turbine Generators (A) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study General Electric vs. Westinghouse in Large Turbine Generators (A) are -
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Warfare Turbine business can come under increasing regulations regarding data privacy, data security, etc.
Regulatory challenges
– Warfare Turbine needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Strategy & Execution industry regulations.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Increasing wage structure of Warfare Turbine
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Warfare Turbine.
Consumer confidence and its impact on Warfare Turbine demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Warfare Turbine can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study General Electric vs. Westinghouse in Large Turbine Generators (A) .
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Warfare Turbine with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
High dependence on third party suppliers
– Warfare Turbine high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Warfare Turbine needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Warfare Turbine will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Environmental challenges
– Warfare Turbine needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Warfare Turbine can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Shortening product life cycle
– it is one of the major threat that Warfare Turbine is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Stagnating economy with rate increase
– Warfare Turbine can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Weighted SWOT Analysis of General Electric vs. Westinghouse in Large Turbine Generators (A) Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study General Electric vs. Westinghouse in Large Turbine Generators (A) needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study General Electric vs. Westinghouse in Large Turbine Generators (A) is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study General Electric vs. Westinghouse in Large Turbine Generators (A) is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of General Electric vs. Westinghouse in Large Turbine Generators (A) is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Warfare Turbine needs to make to build a sustainable competitive advantage.
