GE Aircraft Manufacturing Case Study

It has also collaborated with French company, Safran Aircraft Engines and CFM internationals (GE Aviation. com, 2018). Over the years, the company has experienced massive success in its operations. For instance, it recorded an operating revenue of 6. 1 billion in 2016. Automating most of the company’s’ activities is also another strength. It has helped them reduce labor costs and strategically minimized risks that would have been caused by human error. Weaknesses One of the major weaknesses faced by the company is stiff competition. Research shows that the main competitors of GE Aircraft are Rolls Royce and Pratt & Whitney. Recently, Pratt & Whitney launched the “Pure Power Geared Turbofan”. Threats The strengths and opportunities give GE Aviation corporate strategies to deliver the best services and quality products.

However, threats motivate them to systematically analyze their complex situation and outdo their competitors. The main threat GE Aviation faces is price changes due to the economic instability of a country or specific aeronautical companies. When the competition is high, some companies lower the price of their products. This acts as a threat to this company since their quality products are not worth selling at a lower price. The major threat in the aircraft industry is supplier power. For instance, just as the fuels costs rise and decrease so are aircraft components and labor are sometimes unpredictable (MSG, n. d). The unstable prices influence the company into impulse spending which threatens their financial status. Moreover, the factors are subjected to economic occurrences’ like price fluctuations and costly concessions, which are dependent on the suppliers.