GE Consumer & Industrial Competition
Now Viewing GE Consumer & Industrial's competition in: Household Appliance Manufacture (primary)
Call Preparation Questions
Customers, Marketing, Pricing, Competition
Does the company sell mainly to distributors or directly to retailers? - Large retailers often buy directly from the manufacturer.
How important is any one customer to the company’s revenue? - A major retailer can represent over 10 percent of a large supplier’s revenue and over 30 percent of a smaller supplier’s.
Does the company provide product repair services as a line of business? - Large manufacturers may operate regional service centers.
What are the most effective marketing and advertising for the company? - Appliance manufacturers do much advertising, using TV, radio, and print ads, including cooperative ads with major retailers.
What pricing pressures has the company had in recent years and how does it respond? - Generally, industry prices have been flat for a decade.
Competitive Landscape
Demand is driven by growth in consumer income and by home sales. The profitability of individual companies depends on efficient operations and effective marketing. Large companies have economies of scale in production, marketing, and distribution. Small companies can compete effectively by producing specialty products, subcontracting to the larger manufacturers, or producing name brand goods under contract. The industry is fairly automated: annual revenue per employee is close to $250,000.
Business Challenges
CRITICAL ISSUES
Competition from Low-Cost Imports - Due to low labor costs and large economies of scale in production, imports have become a major factor in the US market. Imports, which hold about 40 percent of the US appliance market, come both from foreign and US manufacturers with foreign plants. Half of imports come from China.
Dependence on Cyclical Real Estate Market - Sales of major appliances are closely linked to sales of new and existing homes, as consumers are most likely to buy new appliances when they buy a home. US home sales increased 45 percent from 2000 to 2005, boosting appliance sales, but residential construction has declined in recent years. A significant drop in home sales sharply affects appliance demand.
Industries Where GE Consumer & Industrial Competes
- Consumer Products Manufacturers
- Appliances(primary)
- Electronics
- Electrical Products
- Industrial Manufacturing
- Lighting & Other Fixture Manufacturing
