GE or General Electric company is an America bases multinational conglomerate which is incorporated in New York. The company is headquartered in Boston. General Electric is operating in different segments like aviation, power, healthcare, renewable energy, additive manufacturing, digital industry, lighting, finance, and venture capital. The company believes in driving the world with tackling the challenges and bringing progress in its operations (GE, 2020).
VRIO Analysis of General Electric
VRIO framework is an analytical model which helps the company in assessing its resources and capabilities in order to achieve sustained competitive advantage. VRIO is an acronym of Value, Rare, Imitable, and Organization. It helps the company in improving its operations to strengthen its position. It brings new opportunities to the business and helps it in mitigating the threats. Here is the detailed VRIO analysis of General Electric.
Value
This is the first component of the VRIO model, which believes in resources to be valuable. The valuable resources and capabilities help the company in bring efficiency in operations. General Electric has worked hard to build its strong position in the market. The company has different segments of operations which are considered as highly valuable. The wide business portfolio is one a valuable resource. It brings numerous challenges, but GE knows the way to tackle with them. Aviation and power are the segments that contribute much in the revenue. The company is able to exploit opportunities in a best possible way to gain more profit (Pratap, 2018).
Rarity
This component deals with the rare resources of the company. It is important for the company to have rare resources which help it in gaining competitive advantage. If the resources will not be rare, every company will use it in the same way. General Electric has involved itself in various businesses which gives it edge over others. But the same time it has to compete in all markets. Hence, it focused on advance technology to reduce the threats. It uses high technology in its operations which helps in better quality outcomes efficiently. This becomes one of the main component of achieving competitive advantage to General Electric (Haafst, 2016).
Imitability
This component focuses on the resources that are costly to imitate or difficult to find the substitute for. The company should make sure that its resources are irreplaceable and not easily available with rivals to have the exclusivity. With the broad product portfolio, GE is able to develop and maintain strong brand image and financial position. The company’s financial performance is very good, which is not easy to imitate by the rivals. Moreover, the strategies it uses for the success and implementation of those are also not replicable. The company has maintain good relationship with its stakeholders which are not possible by every company (Sangwa, 2018).
Organization
This is the last component of the VRIO model, which helps the corporation in achieving sustained competitive advantage. It is necessary for a company to organize its resources in best possible way, so that company will be able to improve its efficiency. General Electric organize its resources very well. Its human resource is highly skilled and talented who works devotedly in defined organizational culture. The company maintains its operations, strategies, and actions implementations wisely to avoid any mess in the company (Pratap, 2018).
Conclusion
General Electric is one of biggest company of America that has broad business portfolio. It serves to multiple industry and manages all the operations very well. The company has achieved sustained competitive advantage by its efforts and strategies.
| Resource/Capabilities | V | R | I | O | |
| Financial position | ✓ | ✓ | ✓ | ✓ | Sustainable competitive advantage |
| Technology | ✓ | ✓ | ✓ | ✓ | Sustainable competitive advantage |
| Brand Equity | ✓ | ✓ | ✓ | ✓ | Sustainable competitive advantage |
| Business Portfolio | ✓ | ✓ | ✓ | ✓ | Sustainable competitive advantage |
| Talented HR | ✓ | ✓ | Competitive parity |
References
GE, 2020. About the company. [Online], Available at: https://www.ge.com/about-us, [Accessed on: 20th May, 2020].
Haafst, R. 2016. GE vs Siemens – A Strategic Analysis. [Online], Available at: https://www.researchgate.net/publication/311065238_GE_vs_Siemens_-_A_Strategic_Analysis, [Accessed on: 20th May, 2020].
Pratap, A. 2018. Strategic analysis of General Electric. [Online], Available at: https://notesmatic.com/strategic-analysis-of-general-electric/, [Accessed on: 20th May, 2020].
Sangwa, S. 2018. Strategic Analysis through the general electric. [Online], Available at: https://www.academia.edu/35836355/Strategic_Analysis_through_the_General_Electric, [Accessed on: 20th May, 2020].