Porter's Five Forces Analysis

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Porter´s Five Forces is the analytical framework chosen to analyse GE´s Playbook. GE is one of the world´s most diverse companies spanning a wide range of businesses (Grant, 2005), including appliances and lighting, aviation, capital (commercial lending and leasing, consumer, real estate, energy financial services, aviation financial services), energy management, healthcare, oil & gas, power & water, and transportation (General Electric, 2015). Some of their customers are:
- Aviation, Commercial Engines: Boeing
- Capital Inventory Financing: P.C. Richard and Son
- Distributed Energy: Songas
- Healthcare: Wheaton Franciscan
The direct competitors of GE are Siemens AG, Honeywell, Danaher Corporation, and Du Pont (Jain, 2013). However, GE is a huge company in comparisons to their competitors and through diversifying their business GE is able to broaden their competitive scope. Furthermore, GE relies a lot from its suppliers in delivering those raw materials and components used in their product. Therefore, a disruption in deliveries from their suppliers may cause a huge effect on their businesses.
Each questions asked in the playbook corresponds to different aspect of the business. The first question, for example, is a question asked on the market condition of each of their business unit (BU). The third and last question corresponds to GE´s competitive advantage of each of their BU. While question two and four reflects to the competitive environment.

Porter´s Five Forces: