A strategic analysis of GE Lentronics' rail switch project

The utility communications equipment market consists of conservative adopters of new technology, who have started to embrace Ethernet technology for their substation distribution communications. GE Lentronics is developing an industrial Ethernet switch for this developing market. Examination of external factors reveals a market that is in a growth phase. The overlap of Ethernet technology used in business markets provides low technology barriers of entry for new entrants. Howlever, brand identification and access to distribution channels offer higher barriers to entry for new entrants. Internally, the organisation has adequate resources to meet the critical success factors demanded of the market. The Rail Switch c;omplements the current strategy by creating potential for pull-through sales of the multiplexer products. We proposed and evaluated various scenarios using these criteria to arrive at a recommendation. A subproject was proposed to develop network management compatibility between the Lentronics multiplexer and the existing GE MultiLink industrial switch.