G.E diversification

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//In order to be successful in the prevailing business environment, every business organization adopts various strategies. Diversification is also one of the strategies that the organizations adopt in which they expand their business operations on a global scale. In this regard, General Electric's diversification approach and its potential strengths, weaknesses, opportunities, and threats would be discussed further.//
Areas of diversification of General Electric and its SWOT Analysis
Diversification refers to the expansion of operations by a company in order to grow outside the industry in which it currently deals. In light of this, the diversification areas of General Electric can be highlighted. GE is an American multinational corporation, which is incorporated in New York and operates in sectors including Power, Aviation, Energy and others. It is not merely an electronics based company, but it has diversified its areas of operation through various acquisitions and investment in Financial Services, Transportation, Home and Business Solutions and Energy Infrastructure and others. Each segment of diversification offers valuable services and products worldwide. The transportation segment provides technology for mining, oil and gas, marine sector, and others. The energy sector provides gas, steam, power generators, oil and gas extraction, mining machines and wind turbines. The Aviation segment deals with the production of aerospace products for military and commercial use.
The diversification approach of GE can be evaluated with the help of SWOT analysis. The strengths of the diversification approach adopted by GE is that it successfully deals in large number of consumer and industrial products like refrigerators, freezers, microwave, gas ranges and others. It is also successfully adding various other segments to its portfolio by investing in more than 12 markets. The weaknesses GE faces are the uncertainty of its earning performance in future and capital assets quality. Further, it also has an alarming level of indebtedness, which can harm its diversification approach. There are various opportunities in the commercial airplane market due to its projected increase in demand. It can also consider diversifying its operation in China to a greater extent due to various operational benefits. The threat it may encounter includes foreign ...