UNIT III

Industry analysis

Five Forces Model of Competition

Substitute Products
(of firms in other industries)

Suppliers of Key Inputs

Rivalry Among Competing Sellers

Buyers

Potential New Entrants

Porters Five Forces of Competition Framework

SUPPLIERS
Bargaining power of suppliers INDUSTRY COMPETITORS POTENTIAL Threat of ENTRANTS new entrants Threat of Rivalry among existing firms SUBSTITUTES substitutes

Bargaining power of buyers

BUYERS

The Structural Determinants of Competition

SUPPLIER POWER
Suppliers price sensitivity Relative bargaining power

THREAT OF ENTRY
Capital requirements Economies of scale Absolute cost advantage Product differentiation Access to distribution channels Legal/ regulatory barriers Retaliation

Concentration Diversity of competitors Product differentiation Excess capacity & exit barriers Cost conditions

INDUSTRY RIVALRY

SUBSTITUTE COMPETITION
Buyers propensity to substitute Relative prices & performance of substitutes

BUYER POWER
Buyers price sensitivity Relative bargaining power

The six forces model

 Assess strength of each of the five competitive forces (Strong? Moderate? Weak? )
Rivalry among competitors Competition from substitute products Competitive threat from potential entrants Bargaining power of suppliers and supplier-seller collaboration Bargaining power of buyers and buyer-seller collaboration

Analyzing the Five Competitive Forces: How to Do It

Explain how each force acts to create competitive pressure What are the factors that cause each force to be strong or weak? Decide whether overall competition (the combined effect of all five competitive forces) is brutal, fierce, strong, normal/moderate, or weak.

Threat of Substitutes

Extent of competitive pressure from producers of substitutes depends upon:

Buyers propensity to substitute The price-performance characteristics of substitutes.

Competitive Force of Substitute Products

Concept Substitutes matter when customers are attracted to the products of firms in other industries.
Examples

Eyeglasses vs. Contact Lens Sugar vs. Artificial Sweeteners Newspapers vs. TV vs. Internet E-mail vs. Overnight Delivery vs Snail mail (U.S. Post Office).

How to Tell Whether Substitute Products are a Strong Force

Sales of substitutes are growing rapidly Producers of substitutes plan to add new capacity Profits of producers of substitutes are up.

Factors Affecting Competition from Substitutes

Firms in Other Industries Offering Substitute Products

Competitive pressures from substitutes are Competitive pressures stronger when from substitutes are Good substitutes are weaker when: readily available or new Good substitutes are ones are emerging not readily available or dont exist Competitive pressures coming Substitutes are lower priced relative to the Substitutes are higher from the attempts of companies outside the performance they priced relative to the industry to win buyers deliver performance they over to their products Buyers have low costs deliver in switching to Buyers have high Rivalry substitutes costs in switching to among Buyers grow more substitutes Competing comfortable with using Sellers substitutes

Principle of Competitive Markets

Competitive threat of substitutes is stronger when they are:
Readily available Attractively priced Believed to have comparable or better performance features Customer switching costs are low.

The Threat of Entry

Entrants threat to industry profitability depends upon the height of barriers to entry. The principal sources of barriers to entry are: Capital requirements Economies of scale

Absolute cost advantage

Product differentiation Access to channels of distribution Legal and regulatory barriers Retaliation.

Competitive Force of Potential Entry

Seriousness of threat depends on Barriers to entry Reaction of existing firms to entry Barriers exist when Newcomers confront obstacles Economic factors put potential entrant at a disadvantage relative to incumbent firms.

Factors Affecting the Threat of Entry

Entry threats are stronger when
The pool of entry candidates is large Entry barriers are low or can be readily hurdled by the likely entry candidates When existing industry members are looking to expand their market reach by entering product segments or geographic areas where they currently do not have a presence Industry members are earning attractive profits Buyer demand is growing rapidly.

Entry threats are weaker when

The pool of entry candidates is small Entry barriers are high Existing competitors are struggling to earn good profits The industrys outlook is risky or uncertain Buyer demand is growing slowly or is stagnant

The Rivalry Among Competing Sellers

Competitive pressures coming from the threat of entry of new rivals

Potential New Entrants

Common Barriers to Entry

Sizable economies of scale Inability to gain access to specialized technology Existence of strong learning/experience curve effects Strong brand preferences and customer loyalty Large capital requirements and/or other specialized resource requirements Cost disadvantages independent of size Difficulties in gaining access to distribution channels Regulatory policies, tariffs, trade restrictions.

Principle of Competitive Markets

Threat of entry is stronger when: Entry barriers are low Sizable pool of entry candidates exists Incumbents are unwilling or unable to contest a newcomers entry efforts Newcomers can expect to earn attractive profits.

Bargaining Power of Buyers

Buyers price sensitivity

Cost of purchases as % of buyers total costs. How differentiated is the purchased item? How intense is competition between buyers? How important is the item to quality of the buyers own output?

Relative bargaining power

Size and concentration of

buyers relative to sellers. Buyers information . Ability to backward integrate.

Note: analysis of supplier power is symmetric

Competitive Pressures From Buyers and Seller-Buyer Collaboration Whether seller-buyer relationships represent a weak or strong competitive force depends on
Whether buyers have sufficient bargaining leverage to influence terms of sale in their favor Extent and competitive importance of collaborative partnerships between one or more sellers and their customers.

Competitive Force of Buyers

Buyers are a strong competitive force when:
They are large and purchase a sizable percentage of industrys product They buy in large quantities They can integrate backward Industrys product is standardized Their costs in switching to substitutes or other brands are low They can purchase from several sellers Product purchased does not save buyer money.

Competitive Pressures: Collaboration Between Sellers and Buyers

Partnerships are an increasingly important competitive element in business-to-business relationships Collaboration may result in mutual benefits regarding
Just-in-time deliveries Order processing Electronic invoice payments On-line sharing of sales at the cash register

Competitive advantage potential may accrue to industry rivals who do the best job of managing seller-buyer partnerships.

Factors Affecting Buyer Bargaining Power

Rivalry Among Competing Sellers
Competitive pressures stemming from buyer bargaining power and sellerbuyer collaboration

Buyers

Buyer bargaining power is stronger when

Buyer switching costs to competing brands are low Buyers are large and purchase in large quantities Quantity and quality of information available to buyers improves Some buyers are a threat to integrate backward into the business of sellers Buyer demand is weak or declining

Buyer bargaining power is weaker when

Buyer switching costs to competing brands are high There is a surge in buyer demand Seller-buyer collaboration or partnering provides attractive win-win opportunities

Rivalry Between Established Competitors

The extent to which industry profitability is depressed by aggressive price competition depends upon: Concentration (number and size distribution of firms) Diversity of competitors (differences in goals, cost structure, etc.)

Product differentiation
Excess capacity and exit barriers Cost conditions Extent of scale economies Ratio of fixed to variable costs.

Rivalry Among Competing Sellers

Usually the most powerful of the five forces The big factor determining the strength of rivalry is how actively and aggressively are rivals employing the various weapons of competition in jockeying for a stronger market position and seeking bigger sales
Is price competition vigorous? Active efforts to improve quality? Are rivals racing to offer better performance features? Are rivals racing to offer better customer service? Lots of advertising/sales promotions? Active efforts to build a stronger dealer network? Active product innovation? Active use of other weapons of rivalry?

What Causes Rivalry to be Stronger?

Active jockeying for position among rivals and frequent launches of new offensives to gain sales and market share One or more firms initiates moves to bolster their standing at expense of rivals Lots of firms that are relatively equal in size and capability Slow market growth Industry conditions tempt some firms to go on the offensive to boost volume and market share Customers have low costs in switching to rival brands A successful strategic move carries a big payoff Costs more to get out of business than to stay in Firms have diverse strategies, corporate priorities, resources, and countries of origin.

Factors That Affect the Strength of Rivalry

Rivalry is generally stronger when:
The Weapons of Competitive Rivalry
Lower prices More appealing features Better product performance Higher quality Strong brand image and appeal Better customer service capabilities Wider product selection Bigger/better dealer network Stronger product innovation capabilities Longer warranties Higher levels of advertising Rivals are active in making fresh moves to increase sales and market share Buyer demand is growing slowly The number of rivals ranges from at least 5 to upwards of 12 or more Rivals are of roughly equal size and capability Buyer costs to switch brands are low One or more rivals is dissatisfied with their current position and market share and make aggressive moves to improve their market prospects When rivals have diverse strategies and objectives and are located in different countries When one or two rivals have powerful strategies and other rivals are scrambling to stay in the game

Rivalry among Competing Sellers

Efforts of rivals to gain better market position, higher sales and market share, and competitive advantage

Rivalry is generally weaker when:

Rivals move only infrequently or in a nonaggressive manner to draw sales and market share away from rivals Buyer demand is growing rapidly Buyer costs to switch brands are high.

Principle of Competitive Markets

Competitive jockeying among rival firms is dynamic and ever-changing As industry members initiate new offensive and defensive moves

As emphasis swings from one mix of competitive weapons to another.

Strategic Implications of the Five Competitive Forces

Competitive environment is unattractive from the standpoint of earning good profits when:
Rivalry is strong
Entry barriers are low and entry is likely

Competition from substitutes is strong

Suppliers and customers have considerable bargaining power.

Strategic Implications of the Five Competitive Forces

Competitive environment is ideal from a profit-making standpoint when:
Rivalry is moderate

Entry barriers are high and no firm is likely to enter

Good substitutes do not exist Suppliers and customers are in a weak bargaining position.

Coping With the Five Competitive Forces

Objective is to craft a strategy To insulate firm from competitive forces

To help make the rules, placing added pressure on rivals Which allows firm to define the business model for the industry.

What Forces Are at Work to Change Industry Conditions?

Industries change because forces are driving industry participants to alter their actions

Driving forces are the major underlying causes of changing industry and competitive conditions.

Analyzing Driving Forces

1. Identify those forces likely to exert greatest influence over next 1 - 3 years Usually no more than 3 - 4 factors qualify as real drivers of change

2. Assess impact What difference will the forces make - favorable? unfavorable?

Common Types of Driving Forces

Internet and e-commerce opportunities Increasing globalization of industry Changes in long-term industry growth rate Changes in who buys the product and how they use it Product innovation

Technological change/process innovation

Marketing innovation.

Common Types of Driving Forces

Entry or exit of major firms Diffusion of technical knowledge Changes in cost and efficiency Market shift from standardized to differentiated products (or vice versa) Regulatory policies / government legislation Changing societal concerns, attitudes, and lifestyles Changes in degree of uncertainty and risk.

Competitor analysis
A systematic attempt to identify and understand key elements of a competitors strategy in terms of objectives, strategies, resource allocation and implementation through the marketing mix.

Competitor Analysis

Successful strategists take great pains in scouting competitors to

Understand their strategies

Watch their actions

Evaluate their vulnerability to driving forces and competitive pressures

Size up their resource strengths and weaknesses and their capabilities Try to anticipate rivals next moves.

Concerns of an Orgs competitive analysis

1. Who are our competitors? 2. How can our competitors be grouped meaningfully? 3. What are our competitors strengths and weaknesses? 4. What are our competitors objectives and strategies?

5. How are our competitors likely to react to changes

in the marketing environment?

Concerns of an Org.s competitive analysis (1) Competitor identification

1. Who are our competitors? Similar specific-same product, technology and target market Similar general-same product area, but different segments e.g. i20 vs. BMW Different specific-same need satisfied by different means

e.g. IR vs. KF
Different general-competing for discretionary spend. e.g. holiday vs. new car.

Concerns of an Org.s competitive analysis (2) 2. How can our competitors be grouped meaningfully?
Different characteristics for identifying Strategic groupings

Figure 20.8
Source: Adapted from Wilson et al. (1992).

Concerns of an Org.s competitive analysis (3) 3. What are competitive strengths and weaknesses
Requires use of various information sources.
Consider in terms of critical success factors: e.g. manufacturing, technical and financial strength, relationships with supplier and customer, its market and segment, product range, its volume, cash and profits etc. Information can be used to plan and launch attack.

Concerns of an Org.s competitive analysis (4)

4. What are our competitors objectives and strategies?

Objectives related to cash generation, market share, technological leadership, quality recognition etc. Find clues in product portfolio. Strategy - related to its positioning, marketing mix etc.

Concerns of an Org.s competitive analysis (5) 5. How are our competitors likely to react to changes

in the marketing environment?

Learn by experience Not easy to predict its reaction due to: its cost structures, relative market positions, product life cycle, industrial position etc.

Useful information about competitors

Table 20.2
Source: Wilson et al. (1992).

Predicting Moves of Rivals

Predicting rivals next moves involves Analyzing their current competitive positions

Examining public pronouncements about what it will take to be successful in industry

Gathering information from grapevine about current activities and potential changes Studying past actions and leadership Determining who has flexibility to make major strategic changes and who is locked into pursuing same basic strategy

What are the Key Factors for Competitive Success? Competitive elements most affecting every industry members ability to prosper
Specific strategy elements

Product attributes Resources Competencies Competitive capabilities

KSFs spell the difference between

Profit and loss

Competitive success or failure.

Identifying Industry Key Success Factors

Answers to three questions pinpoint KSFs On what basis do customers choose between competing brands of sellers? What resources and competitive capabilities does a seller need to have to be competitively successful? What does it take for sellers to achieve a sustainable competitive advantage? KSFs consist of the 3 - 5 really major determinants of financial and competitive success in an industry.

Example: KSFs for Apparel Manufacturing Industry

Fashion design -- to create buyer appeal Low-cost manufacturing efficiency -- to keep selling prices competitive.

Competitor Analysis
The follow-up to Industry Analysis is effective analysis of a firms Competitors.
Industry Environment Competitive Environment

Competitor Analysis
Assumptions What assumptions do our competitors hold about the future of industry and themselves? Current Strategy Does our current strategy support changes in the competitive environment? Future Objectives How do our goals compare to our competitors goals? Capabilities How do our capabilities compare to our competitors?

Response
What will our competitors do in the future? Where do we have a competitive advantage?

How will this change our relationship with our competition?

Applying Five - Forces Analysis

Forecasting Industry Profitability
Past profitability a poor indicator of future profitability. If we can forecast changes in industry structure we can predict likely impact on competition and profitability.

Strategies to Improve Industry Profitability

What structural variables are depressing profitability Which of these variables can be changed by individual or collective strategies?

Drawing Industry Boundaries : Identifying the Relevant Market

What industry is BMW in:
World Auto industry European Auto industry World luxury car industry?

Key criterion: SUBSTITUTABILITY

On the demand side : are buyers willing to substitute between types of cars and across countries On the supply side : are manufacturers able to switch production between types of cars and across countries

We may need to analyze industry at different levels of aggregation for different types of decision.

Identifying Key Success Factors

Pre-requisites for success Pre-requisites for success
What do customers want? How does the firm survive competition Analysis of competition Analysis of demand Who are our customers? What do they want? What drives competition? What drives main What are the competition? What are the competition? dimensions of main dimensions of competition? How intense is competition? How intense is competition? How can we obtain a How can we obtain a superior superior competitive competitive position? position?

KEY SUCCESS FACTORS

Strategic Management Principle

A sound strategy incorporates efforts to be competent on all industry key success factors and to excel on at least one factor!

Is the Industry Attractive or Unattractive and Why?

Objective
Develop conclusions about whether the industry and competitive environment is attractive or unattractive, both near- and long-term, for earning good profits

Principle
A firm uniquely well-suited in an otherwise unattractive industry can, under certain circumstances, still earn unusually good profits.

Things to Consider in Assessing Industry Attractiveness

Industrys market size and growth potential Whether competitive conditions are conducive to rising/falling industry profitability Will competitive forces become stronger or weaker Whether industry will be favorably or unfavorably impacted by driving forces Potential for entry/exit of major firms Stability/dependability of demand Severity of problems facing industry Degree of risk and uncertainty in industrys future.

Conducting an Industry and Competitive Situation Analysis Two things to keep in mind 1. Evaluating industry and competitive conditions cannot be reduced to a formulalike exercise--thoughtful analysis is essential 2. Sweeping industry and competitive analyses need to done every 1 to 3 years.

Dynamic Competition
Porter framework assumes: (a) industry structure drives competitive behavior (b) Industry structure is (fairly) stable. But, competition also changes industry structure: Schumpeterian Competition: A perennial gale of creative destruction where firm strategies continually transforms industry structure innovation overthrows established market leaders Hypercompetition: intense and rapid competitive moves.creating disequilibrium through continuously creating new competitive advantages and destroying, obsolescing or neutralizing opponents competitive advantages

Implication: Under dynamic competition, 5-forces framework is less usefulCompetitive behavior and industry structure jointly determined by underlying conditions of technology, demand & costs.

The Contribution of Game Theory to Competitive Analysis

Main value:
1. 2. Framing strategic decisions as interactions between competitors Predicting outcomes of competitive situations involving a few, evenly-matched players

Some key concepts:

1.

2.
3. 4.

Competition and CooperationGame theory can show conditions where cooperation more advantageous than competition Deterrencechanging the payoffs in the game in order to deter a competitor from certain actions Commitmentirrevocable deployments of resources that give creditability to threats Signalingcommunication to influence a competitor's decision

Problems of game theory:

Useful in explaining past competitive behaviorweak in predicting future competitive behavior. Whats the problem? Multitude of models, outcomes highly sensitive to small changes in assumptions.

Value Chain Analysis

Definition
Value Chain Analysis helped identify a firm's core competencies and distinguish those activities that drive competitive advantage. The cost structure of an organization can be subdivided into separate processes or functions assuming that the cost drivers for each of these activities behave differently.

The Porter Value Chain

FIRM INFRASTRUCTURE

HUMAN RESOURCE MANAGEMENT

TECHNOLOGY DEVELOPMENT PROCUREMENT

SUPPORT ACTIVITIES

INBOUND

OPERATIONS

OUTBOUNDMARKETING

SERVICE PRIMARY ACTIVITIES

LOGISTICS

LOGISTICS

& SALES

Value chain template

firm infrastructure

human resource management technological development

support activities

procurement
operations

primary activities
source: Michael Porter, competitive advantage

outbound logistics

inbound logistics

marketing & sales

service

The nine activity groups are:

Primary activities:
1. inbound logistics: materials handling, warehousing, inventory control, transportation; 2. operations: machine operating, assembly, packaging, testing and maintenance; 3. outbound logistics: order processing, warehousing, transportation and distribution; 4. marketing and sales: advertising, promotion, selling, pricing, channel management; 5. service: installation, servicing, spare part management;

Support activities:
6. firm infrastructure: general management, planning, finance, legal, investor relations; 7. human resource management: recruitment, education, promotion, reward systems; 8. technology development: research & development, IT, product and process development; 9. procurement: purchasing raw materials, lease properties, supplier contract negotiations.

Objective value chain analysis

The objective is to analyse competitive advantage by disintegrating an organisation into discrete activities or processes and examine how each activity contributes to the organisations relative cost position or the customers comparative willingness to pay.

The analysis provides:

Insight into why the firm does or does not have added value; A way to identify opportunities to improve added value; An understanding how added value may change over time.

The Value Chain: The McKinsey Business System

TECHNOLOGY

PRODUCT DESIGN

MANUFACTURING

MARKETING

DISTRIBUTION

SERVICE

Strategic Group Analysis

A strategic group is a group of firms in an industry that

follow the same or similar strategies.

Identifying strategic groups: Identify principal strategic variables which distinguish firms. Position each firm in relation to these variables. Identify clusters.

Strategic group
One technique for revealing the different competitive positions of industry rivals is strategic group mapping. A strategic group consists of those rivals with similar competitive approaches in an industry.

Strategic Group Mapping

Firms in same strategic group have two or more competitive characteristics in common Sell in same price/quality range Cover same geographic areas Be vertically integrated to same degree Have comparable product line breadth Emphasize same types of distribution channels Offer buyers similar services Use identical technological approaches.

Procedure for Constructing a Strategic Group Map

STEP 1: Identify competitive characteristics that differentiate firms in an industry from one another STEP 2: Plot firms on a two-variable map using pairs of these differentiating characteristics STEP 3: Assign firms that fall in about the same strategy space to same strategic group STEP 4: Draw circles around each group, making circles proportional to size of groups respective share of total industry sales.

Example: Strategic Group Map of the Video Game Industry

Types of Video Game Suppliers/Distribution Channels
Arcades
Arcade operators Publishers of games on CD-ROMs

Home PCs Sony, Sega, Nintendo, several others

Video game consoles

Online/Internet

MSN Gaming Zone, Pogo.com, America Online, HEAT, Engage, Oceanline, TEN

Low (Coin-operated equipment)

Medium (Console players cost $100-$300)

High (Use PC)

Overall Cost to Players of Video Games

Interpreting Strategic Group Maps

Driving forces and competitive pressures often favor some strategic groups and hurt others Profit potential of different strategic groups varies due to strengths and weaknesses in each groups market position The closer strategic groups are on map, the stronger the competitive rivalry among member firms tends to be.

What Strategic Moves Are Rivals Likely to Make Next?

A firms own best strategic moves are affected by

Current strategies of competitors

Future actions of competitors

Profiling key rivals involves gathering competitive intelligence about their

Current strategies Most recent moves

Resource strengths and weaknesses

Announced plans.

Strategic Groups in the World Automobile Industry

Broad
REGIONALLY-FOCUSED BROAD-LINE PRODUCERS e.g. Fiat, PSA, Renault, Kia, NATIONALLY FOCUSED, INTERMEDIATE LINE PRODUCERS e.g. Tofas, Proton, Maruti First Auto Works (China)

GLOBAL, BROAD-LINE PRODUCERS e.g., GM, Ford, Toyota, Nissan, Honda, VW, DaimlerChrysler

PRODUCT RANGE

GLOBAL SUPPLIERS OF NARROW MODEL RANGE e.g., Subaru, Isuzu, Suzuki, Saab, Hyundai, Daihatsu

LUXURY CAR MANUFACTURERS NATIONALLY- FOCUSED, SMALL, SPECIALIST PRODUCERS e.g., Bristol (U.K.), Classic Roadsters (U.S.), Morgan (U.K.) e.g., Aston Martin, BMW, Rolls Royce (owned by VW)

Narrow National

PERFORMANCE CAR PRODUCERS e.g., Porsche, Ferrari (owned by Fiat) Maserati, Lotus

GEOGRAPHICAL SCOPE

Global

Strategic Groups Within the World Petroleum Industry

2.0

INTERNATIONAL Apache UPSTREAM Premier COMPANIES Oil Adanarko Kuwait Petroleum PDVSA NATIONAL Iran PRODUCTION COMPANIES NOC Statoil Chevron Peme Petronas Lukoil x PetroChina Conoco Phillips Indian Oil Phillips Petrobras ENI Elf-Fina-Total ENI Nippon Repsol YPF Repsol Valero Neste Ashland Sunoco INTEGRATED DOMESTIC OIL COMPANIES BP

Vertical Balance

1.5

INTEGRATED OIL MAJORS INTERNATIONAL UPSTREAM, REGIONALLY FOCUSED DOWNSTREAM

1.0

Exxon -Mobil THE SUPER MAJORS Royal Dutch Shell

0.5

INTERNATIONAL DOWNSTREAM OIL COMPANIES

0 0

10

20

30

40

50

60

70

80

NATIONALLY-FOCUSED DOWNSTREAM COMPANIES

Geographical Scope

Analyzing Resources & Capabilities

OUTLINE
The role of resources and capabilities in strategy formulation. The resources of the firm Organizational capabilities Appraising the profit potential of resources and capabilities Putting resource and capability analysis to worka practical guide Creating new capabilities.

Shifting the Focus of Strategy Analysis: From the External to the Internal Environment

THE FIRM
Goals and Values Resources and Capabilities Structure and Systems The Firm-Strategy Interface

THE INDUSTRY ENVIRONMENT

STRATEGY
STRATEGY

Competitors Customers Suppliers

The Environment-Strategy Interface

Rationale for the Resource-based Approach to Strategy

When the external environment is subject to rapid change, internal resources and capabilities offer a more secure basis for strategy than market focus.
Resources and capabilities are the primary sources of profitability

Competency The Power to Perform.

Professional Competencies + Personal Competencies = organizational success

Competency
The capacity to do something well that others value. Competency is the blend of skills, knowledge and behaviour necessary for effective job performance.

Managerial Competencies

Competency a combination of knowledge, skills, behaviors, and attitudes that contribute to personal effectiveness. Managerial Competencies sets of knowledge, skill, behaviors, and attitudes that a person needs to be effective in a wide range of positions and various types of organizations.

Competency
Skill Job Attitude Knowledge

Competency
Observale Behaviour

Job Performance

Communication Competency Teamwork Competency

Managerial Effectiveness
Self-Management Competency

Planning and Administration Competency

Multicultural Competency

Strategic Action Competency

GE Values

Values cant just be words on a page. To be effective, they must shape action. - Jeffrey Immelt, CEO General Electric

Competencies to demonstrate GE Values

CURIOUS
Generates new and creative ideas. Fosters an environment where questions and ideas are valued. Seeks feedback, continuously learns, and develops self. Learns as much or more from failures as successes.

TEAMWORK
Builds trust by respecting the ideas and contributions of everyone. Works well with others. Coaches and encourages others on a regular basis. Contributes to positive morale and spirit within the team. Embraces diverse and global cultures.

PASSIONATE
Demonstrates enthusiasm for what he/she does. Willing to take risks. Empowers others to question the status quo. Creates excitement and inspires others to deliver.

COMMITTED
Sets clear and measurable goals. Stays focused on business priorities. Willing to make tough decisions and live with the consequences. Displays persistence and tenacity; is not deterred by obstacles.

RESOURCEFUL
Seeks simple solutions to complex problems. Considers varied alternatives before selecting a solution. Effectively uses internal/external network. Consistently gets tasks accomplished with available resources.

OPEN
Attentive and respectful when listening and responding to others. Willing to change based on the inputs of others. Communicates in an open, candid, and consistent manner. Accessible and approachable.

ACCOUNTABLE
Takes responsibility for decisions, actions and results. Delivers on commitments to stakeholders. Does what is best for the team and the customer. Places success of the organization ahead of personal gain.

ENERGIZING
Displays an engaging, can-do, optimistic attitude. Makes work fun. Inspires others to achieve more than they imagined. Recognizes and rewards the contributions of others.

Competency Framework in GE
PhDs / Scientists Engineering Design Experts

Financial Analysts

Software Engineers

I.T .Helpdesk Agents Accountants

Customer Service Agents

Hourly Workers

Wide Spectrum of Competencies