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 - – technology disruption, competitive advantages are harder to sustain because of technology dispersion, geopolitical disruptions, central banks are concerned over increasing inflation, wage bills are increasing, increasing transportation and logistics costs, increasing inequality as vast percentage of new income is going to the top 1%,
there is increasing trade war between United States & China, customer relationship management is fast transforming because of increasing concerns over data privacy, 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 -
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.
High brand equity
– Warfare Turbine has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Warfare Turbine to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
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.
Strong track record of project management
– Warfare Turbine is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Successful track record of launching new products
– Warfare Turbine has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Warfare Turbine 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.
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.
Analytics focus
– Warfare Turbine 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 E. Porter 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.
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.
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.
High switching costs
– The high switching costs that Warfare Turbine 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.
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 -
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.
Low market penetration in new markets
– Outside its home market of Warfare Turbine, firm in the HBR case study General Electric vs. Westinghouse in Large Turbine Generators (A) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
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.
High operating costs
– Compare to the competitors, firm in the HBR case study General Electric vs. Westinghouse in Large Turbine Generators (A) has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Warfare Turbine 's lucrative customers.
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.
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.
Workers concerns about automation
– As automation is fast increasing in the segment, Warfare Turbine needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
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.
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.
Slow decision making process
– As mentioned earlier in the report, Warfare Turbine 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. Warfare Turbine 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 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 Warfare Turbine supply chain. Even after few cautionary changes mentioned in the HBR case study - General Electric vs. Westinghouse in Large Turbine Generators (A), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Warfare Turbine vulnerable to further global disruptions in South East Asia.
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 -
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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Warfare Turbine to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Warfare Turbine to hire the very best people irrespective of their geographical location.
Manufacturing automation
– Warfare Turbine 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Warfare Turbine is facing challenges because of the dominance of functional experts in the organization. General Electric vs. Westinghouse in Large Turbine Generators (A) case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
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.
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.
Loyalty marketing
– Warfare Turbine 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.
Developing new processes and practices
– Warfare Turbine 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.
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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Warfare Turbine in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Strategy & Execution segment, and it will provide faster access to the consumers.
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.
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.
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.
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 -
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.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Warfare Turbine in the Strategy & Execution sector and impact the bottomline of the organization.
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.
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.
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.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Warfare Turbine.
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.
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 acceleration in Forth Industrial Revolution
– Warfare Turbine has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Warfare Turbine 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.
Easy access to finance
– Easy access to finance in Strategy & Execution field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Warfare Turbine can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Warfare Turbine 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.
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.
