Comparison: Chevron and General Electrics

Published Date: 23 Mar 2015 Last Modified: 16 May 2017

Relative strength of General Electric lies in its multiproduct operations. The company has wider manufacturing base in number of countries of the world. That gives it the reach and depth to the market. Strong brand image gives it instant access to the market. The company has a strong research and development facilities and capable of delivering the newer and newer products in various fields such as Lighting, Appliances, Consumer Electronics, Aviation, Lighting, Health care, Media, Energy, Water business. The company's resource base and access to financial resources is strong.

On flip side, the company is vulnerable to competition from developing countries like China, India, Korea, Taiwan etc. Weak dollar is likely to pose constant challenges and likely to erode its resource base at U.S. A large size has its own disadvantages in decision making and procedural delays compared to a small company. High debt is another weakness for the company.

Chevron is a company specialized in the field of energy and its derivatives. Though lately the company has diversified into the mining, shipping and power generation businesses but still main chunk of revenue comes from its operation in energy sector and the company is well placed in the sector. Relatively, when compared with General Electric, Chevron has the advantage of catering to the energy needs of the world, which is the fastest growing industry sector. Stark contrast between General Electric and Chevron is that former's main line of products is a consumer of energy while latter's main line of businesses stand as a producer of energy. Looking at the present scenario, thus chevron is definitely better placed for future growth.

Learning Reflections

When Innovation is the strength of the company for past several decades and particularly, when it is the reason for its brand image among the masses; it becomes essential that company does not lose focus. In fact, people continue to expect the same in a more intensive way at the time of crisis and deep recession, which is what the world is now passing through.

GE management has to show vision and intensify its efforts because it is a sure shot way to boost the demand for its products. It has been seen in the past that economy starts taking turn when such revolutionary technology of mass consumption starts making the foray in the market. That is what recently happened during communication and internet technology at the beginning of this century. General Electric or for that matter any company should keep in mind these aspects while formulating a long term strategy.

Human Relation aspect is equally important for any company because it is an intangible asset which cannot be assessed easily. Labor unrest in Nigeria for Chevron clearly indicates that how it can derail the growth of the company. Any company needs to have strong HR policies, which can give a solid foundation to the company. No company in the world can ignore human capital irrespective of which industry sector it operates in. Strong HR department with liberal policies aiming at continuous growth and development of human asset is the need of an hour, which helps place the company in fine footing.