Analysis of GE’s Core Competencies Using the Resource Based View

Competitive advantage may be enhanced by developing core competencies for a company. These core competencies can be analyzed in terms of the Resource Based View (RBV). Barney (1995) suggests that RBV enables an organization to identify, acquire and build unique resources and core competencies in order to exploit their strategic capabilities in current or new markets. Competitive advantage comes as a result of the core competencies being difficult to imitate by other competitors in the market. Resource based view categorizes an organization’s core competencies as shown below.

Resource Based View (RBV)

This model can be used to analyze the core competencies of General Electric (GE).

The General Electric Company has some people dependent and people-independent competencies.  One of the core competencies is people and managerial skills of its leaders and employees.

One of the initiatives is Growth Traits and Assessment which outlines and assesses the possibility of GE being able to develop future leaders who are capable of displaying five key strengths: clear thinking, imagination, domain expertise, inclusiveness and external focus (Inkpen, 2009). Best Practices Sharing initiative also enhances better skills of employees because it identifies appropriate approaches and spreads them throughout the company; hence enabling the employees and managers of the company to develop appropriate skills for the benefit of its business. Process Mapping is also another initiative which simplifies processes and facilitates understanding; hence promoting skill development among the custodians of such processes within the organization.

Another initiative is Imagination Breakthroughs which enables the top management to focus on new revenue streams. This leads to the second key competency of the company: Financial resources. If the company achieves the aim of this initiative which focuses management and resources on higher generation of revenue, then the company will earn more financial resources. The initiative enables the company to earn revenue from various businesses and activities within the organization.

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