G. E. a new large competitive advantage inside the large generator industry for three primary causes: better R& D and therefore improved technology, a clear concentrate on larger, even more technologically superior units, and its status as being a price innovator in the market. GE had practically twice the R& M budget of both of their major competition, while concurrently spending fewer on R& D as being a percentage of sales. This kind of allowed that to have the finest technology in the most important market segment with regards to growth: large, complex devices that got the lowest per-megawatt cost. Additionally , these turbines were constructed far ahead of time, and weren't subject to value volatility in the more competitive small turbine landscape. Finally, its status while the price innovator allowed that to set even more consistent prices in the two upturns and downturns in the market but not be controlled by intense discussion. The large generator will be more profitable in the long run due to economy of scale result where this makes more sense to buyers while the cost for them is less than buying the small turbines. The addition of capability makes sense because it affects the placement of orders that are dependent upon short lead time since customer wish to receive the order ASAP and might go to the origin that can deliver sooner. Westinghouse has a stronger hold in the small/medium programs market and Federal programs. As such they will better immediate their R& D towards finding better solutions to the foreign exchange market then heading head to head with G. Electronic. on the huge utilities market. G. At the. on the other hand ought to continue their current strategy as the marketing head focusing on the large utilities permitting within a chance to capture the middle of size utilities as the solutions they offer will be cost-effective by this market. As G. E. can be facing not successful attempt to increase prices, it will single out to Westinghouse to adhere to an increase across the board and each player stays in its own section of the market.