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GE Energy and GE Healthcare: Strategic Customer Relationships

Overview of the case study

Having realized the numerous benefits of IT, many companies can now advertise and market their products through customers’ sites. This is besides continuous monitoring throughout the world. GE energy grabbed these opportunities thereby creating customer relationships that have had varied benefits and returns for the company. The company has invested heavily in terms of monitoring and diagnosing various problems that could face their products. In addition, GE’s healthcare has also employed the same measures on its customers, particularly the medical radiology clinics. This is having been made possible through continuous remote monitoring of the Magnetic Resonance Imaging (MRI) machines.

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This article seeks to discuss the benefits of building strategic customer relationships for GE Energy and GE Healthcare and their customers as they are elaborated in the case study. Additionally, the article will address a number of questions related to the case study as listed in the following discussion.

Business benefits of building strategic customer relationships

Investments in IT have seen GE increase its profitable costs due to the maintenance services offered to their customers (Allmendinger et al. 4). Under normal circumstances, the company cannot charge more than $ 110 per hour for such services mainly because of the stiff competition the company faces from other local investors. However, under the continuous remote monitoring process of system failures, the company can charge up to $ 600 per hour for the same kind of services (Allmendinger et al. 4). Additionally, the information generated by the continuous monitoring process puts the company in a position of developing additional services. In this case, the company can manage inventories for their customers’ spare parts or provide useful data about the status of the customers’ equipment to the customers or the technical service personnel. The move has also allowed the company to develop a great deal of customer dependency in terms of providing high-quality energy equipment and supplying dependable and high-quality energy (Allmendinger et al. 4).

On the other hand, GE healthcare’s clients (particularly the medical radiology clinics) are not charged for installation charges for their equipment. Instead, the company charges these customers for the upkeep and maintenance of MRI machines. This relationship has proved more beneficial to the company and clients than the traditional method of making sales (Allmendinger et al. 5). This has also guaranteed the company continuous competitiveness compared to other companies. Customers are able to lease and enjoy the services of the MRI machines without having to buy them. Charges for services rendered are made depending on the estimates of the number of images provided by the remote monitoring system (Allmendinger et al. 5).

Strategic Uses of IT implemented in this case study

The strategic uses of information technology implemented in this case study are those meant to help the company in gaining a competitive advantage over its competitors, reduce its competitive disadvantages, and meet customers’ needs and satisfaction. The company is faced with a number of competitive forces that it needs to overcome if it is to survive in a cutthroat business environment. These forces include; the bargaining power of customers, the rivalry of competitors within the energy and healthcare industries, the market strength of new entrants into the industry and markets, competition from other substitute products that can capture customers’ attention, and the bargaining power of suppliers. In order to counter these forces, the company has implemented the following competitive strategies; cost leadership in terms of helping their customers reduce costs, differentiation strategies by focussing on producing products that are different from those of their competitors, the innovation strategy by creating unique services as compared to their competitors, growth strategy by expanding into new global markets and the alliance strategy through establishing and maintaining linkages with customers.

How can other companies benefit from the use of IT to build strategic customer relationships?

Other companies can also follow the example of GE in incorporating IT into their businesses. As discussed above, there are many strategic uses of IT in building strategic customer relationships. For instance, as a way of establishing linkages with their suppliers, Wal-Mart employs IT in replenishing suppliers’ files, particularly through their automatic inventory system. Other companies such as Amazon employ a full-service online customer service system that has enabled it to maintain competitiveness in the global market. Thus, other companies can use IT in lowering process costs including customer and supplier costs. IT can also be used strategically to reduce the market differentiation of the competing products in addition to developing new features that can add a product to be unique in the market. IT is also employed in developing new markets besides cutting costs and increasing product quality and process efficiency.

In making new business ventures, a single company manager can be able to manage an expanded field of businesses while maintaining competitiveness, efficiency, and high-quality services through IT. Finally, IT can be employed in creating virtual business organizations and enterprises that aid in supporting customers, suppliers and contractors.

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Is GE expanding and strengthening its use of IT in building strategic customer relations?

GE’s current business ventures include; infrastructure, media, and finance. These businesses are globally distributed and their management relies entirely on information technology. The vision of the company is to meet the world’s needs in infrastructure, environmental technology, healthcare, information and entertainment (General Electric Company par.1). Through its infrastructural business, GE aims at helping the developing countries compete in the global market in the fields of healthcare, energy, transportation and technology infrastructures. Additionally, the company aims at helping commercial businesses, consumers, and other market players both in developed and developing countries in building a promising future. Finally, with the increasing demand for information, GE through its media businesses particularly NBC Universal; produces, develops and markets news, worldwide special events, films, music, television, and sports in a global context (General Electric Company par.3).

Other companies whose products are managed through customers’ site

Due to the increasing competitiveness among industry players in the global market, many companies have taken note of the immense usefulness of global communication networks. These companies can now use IT both in advertising and marketing their products. These companies include; Wal-Mart, Amazon, FedEx, UPS and DHL among others.


This article gives an in-depth discussion on the various benefits of using IT strategically in building customer relationships for GE Energy and GE Healthcare. As it can be noted from the discussion, IT provides massive benefits to companies and their clients in terms of lowering the cost of running businesses and increasing the efficiency and quality of products and services. Thus, the industry players have to implement the strategic uses of information technology to expand their businesses and increase their sales.

Works Cited

  1. Allmendinger, Glen and Lomreglia, Ralph. Four strategies for the age of smart services. Harvard Business Review Publishing Corporation. 2005.
  2. “General Electric Company.” Imagination at work. 2010.

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StudyCorgi. (2021, December 3). GE Energy and GE Healthcare: Strategic Customer Relationships.

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"GE Energy and GE Healthcare: Strategic Customer Relationships." StudyCorgi, 3 Dec. 2021,

1. StudyCorgi. "GE Energy and GE Healthcare: Strategic Customer Relationships." December 3, 2021.


StudyCorgi. "GE Energy and GE Healthcare: Strategic Customer Relationships." December 3, 2021.


StudyCorgi. 2021. "GE Energy and GE Healthcare: Strategic Customer Relationships." December 3, 2021.


StudyCorgi. (2021) 'GE Energy and GE Healthcare: Strategic Customer Relationships'. 3 December.

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