How Fit Drives Both Competitive Advantage and Sustainability

This paper seeks to analyze GE’s business strategy for its Technology Infrastructure Division 3. Positioning statement

For Clinicians and healthcare administrators, GE is the preferred choice for high quality diagnostic equipments amongst all the medical imaging technology produces because the products are not only of low quality, but also cost effective and innovative.

5. 500 words maximum

Currently, the business can be said to be delivering above average in its position based on the company’s benchmarks and performance data. The company’s key performance indicators include customer satisfaction, products a service demand, achievement of the forecasted output. The company boasts of superior technology, enhanced customer services and analytics, and well as growth market leadership. Over the past one year, the company has deployed a very simple and competitive costs structure that assures the stakeholders wealth and boost customer’s confidence.

The company’s core activities include:

Research and development (R&D)

The company is into global products engineering, research, and developments. For example, the company’s diagnostics imaging, information technology and services has benefited from the research and development to become the best providers of diagnostic imaging, IT, and service products. The company’s R&D   department has over 5000 engineers managing close to $650M budget


The company’s health care products and technologies are the most sought for in the world. The innovative and mathematically precise equipment meets the stringent industry standards and are amongst the world’s leading medical imaging and IT products.

Anesthetic and intensive care equipment

The company’s anesthetic and intensive care equipment are the best worldwide and have been known to outperform the industry standards. One of the key achievements of the company in these areas is its ability to produce and market the most innovative products. The budget of the anesthetic and intensive care equipment business is estimated at $450

How Fit Drives Both Competitive Advantage and Sustainability

The company has a unique positioning strategy that enables it to drive competitive advantage and sustainability.  The company’s positioning also determines how, what and when specific acticvti4iws are supposed to be carried out. On the other hand, the company’s operational effectiveness helps it focus on specific activities that can e combined to deliver competitiveness and sustainability

1. First-order fit (consistency): the company’s research and development is consistent with market leadership strategy. The company’s research and development functions make it easy for it to develop unique and high quality diagnostic equipment that appeals to clinicians and healthcare institutions. All stakeholders agree with the prices set by the company for its diagnostic equipment because of their uniqueness

2. Second-order fit (reinforcement):  the company’s second order fit occurs through reinforcement. For example, the company has a very motivated and highly skilled sales team, but the company’s excellent research and development team, as well as state if the art production facilities reinforce this.

3. Third-order fit (optimization):  GE boasts of unique ability to coordinate its operations and exchange information across activities as the only way of eliminating any form of redundancy. The company’s efforts are concerted towards strategy achievements. This helps in minimizing effort wastage. The company realizes cost reduction and increased differentiation through competitive advantage. GE is one of the leading companies that have adequately managed to think in terms of themes because the themes pervade many activities.

6. Optional tabulations: Resource & Capability evaluation





  $2.6B budget

Core competencies and skills


R&D Facilities, Manufacturing Plants,   and other equipment and machines


1200 employees


State of the art facilities


A strong brand known for quality and safety

The company has been successful in managing it is current core competences effectively. At the same time, the company has developed new ones. In this context, the company exploits its resources and explores new opportunities. The company assembles its bundles of resources, which includes a number of resources capabilities as well as a set of core competencies that most of its competitor’s lack. The customers, for example benefit from such resource bundles. Such value creation has benefited both the customer and the company in terms of profitability, suitability, and competitiveness. However, despite all these competencies, the company has still not managed change rapidly. The company is still using the older business model that requires changes.

For a company that believes in organic growth, GE has positioned its self as a provider of excellent technology with a wide portfolio of leading edge service ethnologies. The company provides technologies that can achieve customer productivity with equal visibility. While the company is currently seen as a safe long-term investment, the company has invested in an asset that assures its growth and productivity.   The company has coastally leveraged technology to achieve market leadership. Its investment in fast growth markets has enabled it to drive both growth and revenue in all market across the world especially in the emerging market and leading economies.  In 2012 alone, the company managed to drive value in the installed base through the use of market intelligence while at the same time, investing in adjacencies as well as the grow its margins.


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