GE Energy - The Decision to Re-enter India: Is Opportunity "Blowing in the Wind?" SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of GE Energy - The Decision to Re-enter India: Is Opportunity "Blowing in the Wind?"
In July 2008, the vice chairman, General Electric (GE), and president and chief executive officer (CEO), GE Energy Infrastructure, was mulling over whether GE should re-enter the windpower market in India. Financial incentives had been announced by the Government of India for wind farm operators who generated power through wind energy. These incentives might encourage market development so that GE could leverage the technological strength of its wind-powered turbines. However, as recently as 2005, GE Energy had pulled out of the Indian market after a frustrating stint in the country. The vice chairman needed to weigh the pros and cons of re-entering India and make a decision. There was reason for caution, however, from GE's point of view. India was a complex market in which to operate, and the wind energy market was still developing. To be successful, GE would need to build a local supply chain and compete with Suzlon's (the major domestic competitor) speed of delivery. Suzlon's was a formidable player. Should GE re-enter India?
Swot Analysis of "GE Energy - The Decision to Re-enter India: Is Opportunity "Blowing in the Wind?"" written by Michael Rouse, Swetha Dasari includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Ge Wind facing as an external strategic factors. Some of the topics covered in GE Energy - The Decision to Re-enter India: Is Opportunity "Blowing in the Wind?" case study are - Strategic Management Strategies, Emerging markets, Marketing and Strategy & Execution.
Some of the macro environment factors that can be used to understand the GE Energy - The Decision to Re-enter India: Is Opportunity "Blowing in the Wind?" casestudy better are - – increasing household debt because of falling income levels, technology disruption, there is increasing trade war between United States & China, increasing inequality as vast percentage of new income is going to the top 1%, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing government debt because of Covid-19 spendings, banking and financial system is disrupted by Bitcoin and other crypto currencies,
challanges to central banks by blockchain based private currencies, increasing commodity prices, etc
Introduction to SWOT Analysis of GE Energy - The Decision to Re-enter India: Is Opportunity "Blowing in the Wind?"
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in GE Energy - The Decision to Re-enter India: Is Opportunity "Blowing in the Wind?" case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Ge Wind, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Ge Wind 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 GE Energy - The Decision to Re-enter India: Is Opportunity "Blowing in the Wind?" can be done for the following purposes –
1. Strategic planning using facts provided in GE Energy - The Decision to Re-enter India: Is Opportunity "Blowing in the Wind?" case study
2. Improving business portfolio management of Ge Wind
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 Ge Wind
Strengths GE Energy - The Decision to Re-enter India: Is Opportunity "Blowing in the Wind?" | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Ge Wind in GE Energy - The Decision to Re-enter India: Is Opportunity "Blowing in the Wind?" Harvard Business Review case study are -
Highly skilled collaborators
– Ge Wind 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 GE Energy - The Decision to Re-enter India: Is Opportunity "Blowing in the Wind?" 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
– Ge Wind 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 Ge Wind in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Ge Wind digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Ge Wind 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.
Analytics focus
– Ge Wind is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Michael Rouse, Swetha Dasari can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Training and development
– Ge Wind has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in GE Energy - The Decision to Re-enter India: Is Opportunity "Blowing in the Wind?" 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.
Learning organization
- Ge Wind 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 Ge Wind is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in GE Energy - The Decision to Re-enter India: Is Opportunity "Blowing in the Wind?" Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
High switching costs
– The high switching costs that Ge Wind has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
High brand equity
– Ge Wind has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Ge Wind to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Low bargaining power of suppliers
– Suppliers of Ge Wind in the sector have low bargaining power. GE Energy - The Decision to Re-enter India: Is Opportunity "Blowing in the Wind?" has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Ge Wind to manage not only supply disruptions but also source products at highly competitive prices.
Operational resilience
– The operational resilience strategy in the GE Energy - The Decision to Re-enter India: Is Opportunity "Blowing in the Wind?" 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.
Successful track record of launching new products
– Ge Wind has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Ge Wind has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Effective Research and Development (R&D)
– Ge Wind 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 GE Energy - The Decision to Re-enter India: Is Opportunity "Blowing in the Wind?" - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Weaknesses GE Energy - The Decision to Re-enter India: Is Opportunity "Blowing in the Wind?" | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of GE Energy - The Decision to Re-enter India: Is Opportunity "Blowing in the Wind?" are -
Need for greater diversity
– Ge Wind has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Ge Wind supply chain. Even after few cautionary changes mentioned in the HBR case study - GE Energy - The Decision to Re-enter India: Is Opportunity "Blowing in the Wind?", it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Ge Wind vulnerable to further global disruptions in South East Asia.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study GE Energy - The Decision to Re-enter India: Is Opportunity "Blowing in the Wind?", it seems that the employees of Ge Wind don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study GE Energy - The Decision to Re-enter India: Is Opportunity "Blowing in the Wind?", in the dynamic environment Ge Wind has struggled to respond to the nimble upstart competition. Ge Wind has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Interest costs
– Compare to the competition, Ge Wind 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.
Slow decision making process
– As mentioned earlier in the report, Ge Wind has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Ge Wind even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
High cash cycle compare to competitors
Ge Wind 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.
Slow to strategic competitive environment developments
– As GE Energy - The Decision to Re-enter India: Is Opportunity "Blowing in the Wind?" HBR case study mentions - Ge Wind 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.
Aligning sales with marketing
– It come across in the case study GE Energy - The Decision to Re-enter India: Is Opportunity "Blowing in the Wind?" 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 GE Energy - The Decision to Re-enter India: Is Opportunity "Blowing in the Wind?" can leverage the sales team experience to cultivate customer relationships as Ge Wind is planning to shift buying processes online.
Capital Spending Reduction
– Even during the low interest decade, Ge Wind 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the GE Energy - The Decision to Re-enter India: Is Opportunity "Blowing in the Wind?" 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 Ge Wind has relatively successful track record of launching new products.
Opportunities GE Energy - The Decision to Re-enter India: Is Opportunity "Blowing in the Wind?" | 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 GE Energy - The Decision to Re-enter India: Is Opportunity "Blowing in the Wind?" are -
Low interest rates
– Even though inflation is raising its head in most developed economies, Ge Wind 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.
Better consumer reach
– The expansion of the 5G network will help Ge Wind to increase its market reach. Ge Wind will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Ge Wind can use these opportunities to build new business models that can help the communities that Ge Wind operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Using analytics as competitive advantage
– Ge Wind 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 GE Energy - The Decision to Re-enter India: Is Opportunity "Blowing in the Wind?" - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Ge Wind to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Ge Wind to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Ge Wind can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Manufacturing automation
– Ge Wind can use the latest technology developments to improve its manufacturing and designing process in Strategy & Execution segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Creating value in data economy
– The success of analytics program of Ge Wind has opened avenues for new revenue streams for the organization in the industry. This can help Ge Wind to build a more holistic ecosystem as suggested in the GE Energy - The Decision to Re-enter India: Is Opportunity "Blowing in the Wind?" case study. Ge Wind can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Loyalty marketing
– Ge Wind has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Leveraging digital technologies
– Ge Wind 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.
Developing new processes and practices
– Ge Wind can develop new processes and procedures in Strategy & Execution industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Learning at scale
– Online learning technologies has now opened space for Ge Wind to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
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. Ge Wind can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Threats GE Energy - The Decision to Re-enter India: Is Opportunity "Blowing in the Wind?" External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study GE Energy - The Decision to Re-enter India: Is Opportunity "Blowing in the Wind?" are -
Stagnating economy with rate increase
– Ge Wind 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.
Increasing wage structure of Ge Wind
– 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 Ge Wind.
Regulatory challenges
– Ge Wind 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Ge Wind in the Strategy & Execution industry. The Strategy & Execution industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
High dependence on third party suppliers
– Ge Wind 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Ge Wind 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 GE Energy - The Decision to Re-enter India: Is Opportunity "Blowing in the Wind?" .
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. Ge Wind 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Ge Wind with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Technology acceleration in Forth Industrial Revolution
– Ge Wind has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Ge Wind needs to keep up with the evolution of technology in the Strategy & Execution sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Shortening product life cycle
– it is one of the major threat that Ge Wind is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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. Ge Wind needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Environmental challenges
– Ge Wind 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. Ge Wind can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Weighted SWOT Analysis of GE Energy - The Decision to Re-enter India: Is Opportunity "Blowing in the Wind?" 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 GE Energy - The Decision to Re-enter India: Is Opportunity "Blowing in the Wind?" 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 GE Energy - The Decision to Re-enter India: Is Opportunity "Blowing in the Wind?" 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 GE Energy - The Decision to Re-enter India: Is Opportunity "Blowing in the Wind?" 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 GE Energy - The Decision to Re-enter India: Is Opportunity "Blowing in the Wind?" 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 Ge Wind needs to make to build a sustainable competitive advantage.
