E-commerce General electric GE

General Electric (GE)


GE is a wholesale and retail company since it sells its goods to the end user. Electrical instruments and medical equipment are among the products marketed directly to consumers and businesses by the group. Electronic commerce equipment assists the corporation in generating sales by directly using it in the performance of its duties and marketing the service to other customers.


3M is also a retailer


With over 3,000 consumers using the goods for a variety of purposes. Manufacturers or retailers market goods directly to consumers in the retail industry. Wholesale means selling the products in bulk to traders that in turn sell them to the final consumer. Whenever selling in retail the products are sold at a higher price per unit than when selling to wholesalers. Wholesalers get a discount to enable them to make a profit once they sell items to consumers. A retailer becomes the marketer, salesperson, billing contractor, and fulfillment specialist for the business. However, the wholesale business involves the use of wholesalers to distribute products. The manufacturer is left to do the production while wholesale buyers do the marketing, distribution, and delivery of products to customers. Wholesale production is favorable for manufacturers that do mass production for the market. GE and 3M use electronic commerce for doing business such as getting suppliers and buyers for their products. The fact that they engage in marketing their product to try and get more clients reveals that they engage in retail trade. A retailer can control the products especially when it is sold, how much the item is sold, and where it is sold. In addition, interaction with customers is ensured and the manufacturer knows their needs. The two companies interact with their clients via electronic commerce enabling the exchange of information on the product and its usability. However, wholesale involves the use of other parties to promote the product and get customer views. Although the manufacturers do not take the responsibility of marketing, they can get such information from the retailers who distribute products on their behalf. Wholesale is for those that can do mass production and take the product to the market efficiently. It may also require an environment that is more formal compared to retail to deal with wholesalers. Resellers help the manufacturers to take the product far and wide. Thus, manufacturers must consider the products they are dealing with before selecting distribution channels. GE and 3M are companies utilizing internet technology to reach their clients and suppliers ensuring positive growth.

Competitive strategy Analysis of GE Company


Competitive rivalry refers to threats a company gets from its competitors in the market. GE is a company with great reputation and its utilization of modern internet technology puts it ahead of several companies such as Philips Electronics. GE does not receive tough competition due to its diversification of products standing it offers to the clients. Offering a variety of items and services such as electronic commerce gives it an added advantage over its competitors. Despite the tough competition in the industry, the fact that GE can offer a variety of products to its customers helps it to remain relevant in the market.


Threats of new entrants


Refer to the competition a company experiences due to newcomers in the market. GE is a big company known for its quality products and is unlikely to be threatened by new investors in the same industry. Due to the large startup and investment capital involved, entering this market can be very difficult. GE has also established its customers and built a strong relationship with suppliers through online marketing making it difficult for newcomers to penetrate the market and threaten its performance.


Threats of substitutes


Refer to the decision by customers to find other similar options for certain products. GE customers have the option of buying from its competitors such as Philips and LG thus it has to always regulate its prices to retain customers. The company also has to consider product features and ways of making it easy for the product to reach its customers. Use of modern technology such as electronic commerce helps the company to retain most of its customers due to convenience, thus the threat is moderate. GE also pays 10 to 15 percent lower prices as a result of the EC system, thus buyers are retained.


Bargaining power of the buyers


Is another threat that can affect a company's performance. GE experiences medium bargaining power since it is known for manufacturing products of high quality and fair prices thus satisfies most of its customers. Convenience of buying products through the internet helps it to lower its customers' bargaining power.


GE has a low bargaining power of suppliers due to its convenient way of doing business via electronic commerce, especially online bidding. GE purchases in bulk from its suppliers making their bargaining power low since they may not want to lose a reliable buyer. The company's customized bidding and automated purchasing help it to control its suppliers and make it convenient for them to place orders for supplies.

3M Competitive Analysis


3M Company is among the leading firms in the manufacture of diversified machinery and industrial goods. 3M is an innovative company and creates new products thus its threats of new entrants are low. It is able to acquire new customers as well as retain old ones. In addition, the company spends money on research and development and any new ventures may find it difficult to compete with it. For instance, the use of EC technology has enabled it to retain its suppliers and buyers due to the convenience of offering its services.


3M has low bargaining power of suppliers


Due to its diversification of machinery and use of EC technology. The company has an efficient supply chain with multiple suppliers thus it has great control over them. Use of EC for placing bids enables the company to have control of its suppliers. The suppliers comply with the company's supply department regulations.


The bargaining power of buyers in 3M Company is also low since the company focuses on quality and product diversity during manufacturing. Since the company has a huge customer base due to the utilization of electronic commerce technology, the bargaining power of its buyers is low. Most of the customers are satisfied with product quality and service rendered.


Threat of substitutes is moderately low as the company keeps on improving its products and services. 3M is service-oriented and understands the needs of its customers every time. It is highly innovative and sells about 60,000 products that it manufactures. Its EC is broad and comprises of electronic catalogues and web-based customer service, which helps in building customer loyalty. Keeping direct contact with its customers helps in retaining them thus they do not need to go for substitutes.


Rivalry among the competitors is high since the industry has many producers, which tend to lower profitability. The company ensures sustainable differentiation of products to ensure that it captures a large market. It also accommodates technologies by other companies to strengthen customer loyalty. The use of electronic commerce such as offering electronic catalogues and responding to customers' queries online quickly helps it to retain its customers.

Use Electronic Commerce in GE and 3M


Electronic commerce constitutes doing business over the internet used as a competitive tool in 3M and GE. General Electric Company uses EC in several areas such as management of orders, prospecting customers, and fulfilling orders. For instance, the company uses it to manage inventory to improve operations and ensure customers access quality service. Electronic commerce is vital for GE to ensure the implementation of Six Sigma quality program. The electronic commerce facilitates automated procurement such as the GE Trading Process Network. In this bidding and purchasing can be done easily via the internet as well as sending bidding packages to regular suppliers. The company also uses EC for linkage with its customers through its system known as Supply.net.


3M uses Electronic commerce in many ways such as making catalogues, direct sales, and customer service. The EC is also used in direct connection of the company to the suppliers and customers as well as fax. The use of EDI helps the company to transfer funds and offer support to vender-managed inventory. InforMyWay and DI-based technology is used to help streamline its receiving processes. Similar to GE 3M uses the technology for its electronic catalogues, which are very useful to its clients.

New Technologies for Companies to Adopt


New technologies are emerging and businesses can benefit greatly if they incorporate them in their daily operations. For instance, mobile devices have allowed people to have access to information in the real world. For instance, customers can buy and pick their products in physical retail locations using apps such as site-to-store. Digital features such as store maps and product trials will be of great help to companies such as GE and 3M. Another technology is the workforce marketplace, which involves the use of freelance workers to provide labor. The companies can create on-demand labor platforms and online work-management solutions to get qualified personnel.


Artificial intelligence is becoming common in several organizations, including the medical sector. Use of robots can increase productivity and reduce the cost of human labor required in industries. By adopting this technology, 3M and GE will increase the quality and quantity of items produced for the labor market. The internet cloud allows connectivity with other systems leading to benefits such as mobility and maintenance. Moving businesses to hosted solutions through cloud computing will help GE and 3M improve performance. The idea is to learn many of their application portfolios online through interconnecting their devices.


Embedding communications directly into apps and websites through apps such as Skype and WhatsApp can help companies improve communication. For instance, they allow people to talk, share files, chat, and send messages in real-time. Many internet users rely on their cell phones and mobile devices to get online. In case customers want some clarification on certain issues such as about a product, they can connect instantly to an app that can enable them to get the right information. They can chat with company employees and give feedback on the suitability of the product or seek clarification on various issues. GE and 3M need to adopt the new technologies to ensure that they improve performance and create a good relationship with their clients.

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