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Chapter-1: Introduction

1.1

Statement of the Research problem

Is International marketing strategies applied by General Electric Company


successful to expand their business around the globe?
1.2

Scope and Objectives of the Study

This report is an examination of the international marketing strategies


used by General Electric Company, London to access international foreign
markets. The purpose of this report is to provide the company with the
information necessary for them to improve their presence in the
international market.
The recommendations proposed in this report are
1) To fully utilize the internal market environment
2) To adopt strategic measures to enhance the external market
3) To utilize local professionals in the different regions.
1.3

Methodology of the Study

The strategies used by the company previously were analyzed and a


SWOT analysis was done on the company. The report examines the
importance

of

international

marketing

to

GE

and

several

recommendations to tap into more foreign market.

1.4

Limitations of the study

To make a report on this type of MNEs marketing strategy it needs enough


time, opportunities, and statistical informations that I really lack. After all,
this study suffers from lack of information which should be recovered.

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CHAPTER 2: INT. marketing


strategy adopted by GE
2.1

General Electric company

This is the report on the international marketing strategies adopted by


General Electric Company, London. The company is one of the largest and
extensively diversified corporations in the world. Its organized along 11
business

lines

which

include

transportation,

consumer

finance,

commercial finance, insurance and energy. It is also involved in


healthcare, consumer and industrial products, advanced materials and
NBC-Universal. Its symbol in the Londons stock exchange is GE and it
employs

over

315,000

employees

in

over

160

countries,

with

headquarters in Fairfield, Connecticut. The company has for a long time


aimed

at

promoting

both

the

internal

and

external

marketing

environments. Its primary marketing strategy has been a concentration on


promoting customer consciousness on all employees in all its branches.
This has been based on the growing awareness in todays market that a
strategy can only be marketed successfully in the market place once its
marketed internally.
General Electric, or GE, is an American multinational conglomerate
corporation incorporated in Schenectady, New York and headquartered in
Fairfield, Connecticut, United States.
GE works on things that matter. The best people and the best
technologies taking on the toughest challenges. Finding solutions in

2|Page

energy, health and home, transportation and finance. Building, powering,


moving, and curing the world. Not just imagining. Doing. GE works.
In 2013, GE was named in Barron's list of the most respected companies.
In 2013, GE ranked among Fortune's listing of the world's most admired
companies and the top companies for leaders.
In 2012, GE was named in Bloomberg Businessweek's list of the world's
most innovative companies.
In 2013, GE was named in Ethisphere's list of the world's most ethical
companies.

2.2

History Of GE

General Electric Company (GE), incorporated on April 15, 1892, is a


diversified technology and financial services company. The products and
services of the Company range from aircraft engines, power generation,
water processing, and household appliances to medical imaging, business
and consumer financing and industrial products. It serves customers in
more than 100 countries. Effective January 28, 2011, it held a 49%
interest in a media company that includes the NBC Universal businesses.
Its

segments

include

Energy

Infrastructure,

Aviation,

Healthcare,

Transportation, Home & Business Solutions and GE Capital. Effective


January 1, 2011, it reorganized the Technology Infrastructure segment into
3|Page

three segments: Aviation, Healthcare and Transportation. In March 2014,


General Electric Company acquired Thermo Fisher's HyClone cell culture
media and sera, and gene modulation and magnetic beads businesses. In
April 2014, the Companys GE Healthcare acquired CHCA Computer
Systems Inc., operating room (OR) management and analytics solutions
provider.

In

June

2014,

Cameron

International

Corporation

sold

Reciprocating Compression business to GE.


On January 28, 2011, the Company transferred the assets of its NBC
Universal

(NBCU)

business

and

Comcast

Corporation

(Comcast)

transferred certain of its assets to a NBCUniversal LLC (NBCU LLC). On


February 1, 2011, it acquired Dresser, Inc. On February 4, 2011, the
Company acquired Wellstream PLC. On March 2, 2011, GE acquired
Lineage Power Holdings, Inc. On April 26, 2011, the Company acquired the
Well Support division of John Wood Group PLC. In August 2011, the
Company acquired Commtest. On September 2, 2011, it acquired
Converteam. During the year ended December 31, 2011, the Company
completed the sale of its CLL marine container leasing business. On
February 22, 2012, the Company merged its wholly owned subsidiary,
General Electric Capital Services, Inc. (GECS), with and into GECS wholly
owned subsidiary, General Electric Capital Corporation (GECC).

2.3

The Four Focuses of GE

Building
GE is building the world by providing capital, expertise and infrastructure
for a global economy. GE Capital has provided billions in financing so
businesses can build and grow their operations and consumers can build
their financial futures. We build appliances, lighting, power systems, and
other products that help millions of homes, offices, factories, and retail
facilities around the world work better.
Curing
4|Page

GE is constantly working to make the world a healthier place by supplying


the healthcare technology that saves nearly 3,000 lives every day. Our
focus is on helping medical professionals make an earlier, more accurate
diagnosis of disease and then better equipping them to treat it. We're also
designing the tools that make healthcare available in even the most
remote parts of the world. Anywhere there is a need for better healthcare
tools, we are there.
Moving
GE moves the world in the safest, fastest, and most efficient ways
possible. We're moving airlines on the world's largest and most efficient
jet engine. We move freight using the most advanced locomotives and
signaling systems. We even make the helicopter engines that perform lifesaving rescue missions. If there is a better way to move people and goods,
GE is behind it.
Powering
GE powers the world with the cleanest, most advanced technologies and
energy solutions. From FlexEfficiency Combined Cycle power, to smart
grids that help utilities manage electricity demand, to gas engines that
run on organic waste, our technology currently helps to deliver a quarter
of the world's electricity. GE Oil and Gas is currently operating in more
than 120 countries working on the safest, most reliable and cost-efficient
innovations in the field.

5|Page

2.4

The 4 Ps for the company

Product

The company has maintained a culture of producing high


quality products aimed at providing the best value to the
customer. It also engages in continual improvement of the
existing products through thorough and high-tech research.

Price

In recognition of existing competition in the global market, the


company is involved in regular evaluation of its price to ensure
that customers attain optimum value for their products using
least resources. The company is hence involved in provision of
discounts and promotional items from time to time.

Place

The company has adopted an ambitious global plan over the


years to distribute its products to its consumers in a
considerably convenient manner. In pursuit of this goal, the
company has opened branches in over 160 countries which
exclusively merchandise GEs products.

Promotion

The company has a vigorous promotion culture aimed at


maximizing communication to the consumers. The company
has a state of the art website which is updated continuously to
reflect the products, their benefits and how they can be

6|Page

accessed.

Communication

is

amply

up

to

date

with

professional and articulate customer services only.

2.5

Competitors

Citigroup, Inc (C)


A diversified financial services holding company, provides various financial
products and services, including consumer banking and credit, corporate
and investment banking, securities brokerage, wealth management, and
transaction services to consumers, corporations, governments, and
institutions worldwide.

Koninklijke Philips N.V (PHG)


A Dutch diversified technology company engaged in the healthcare,
lighting, and consumer lifestyle business worldwide. Previously known as
Koninklijke Philips Electronics N.V.

Siemens Aktiengesellschaft (SI)


Operates as an electronics and electrical engineering company worldwide.
The company operates in six segments: energy, healthcare, industry,
infrastructure and cities, equity investments, and financial services.

Direct Competitor Comparison

Market Cap:
Employees:
Qtrly Rev Growth
(yoy):
Revenue (ttm):

GE

PHG

SI Industry

271.55
B
305,00
0
-0.02

154.59B

31.04B

108.19B

1.76B

252,000

116,266

362,000

6.93K

0.44

-0.04

-0.01

0.11

144.91

68.63B

31.88B

98.24B

3.77B
7|Page

Gross Margin (ttm):


EBITDA (ttm):
Operating Margin
(ttm):
Net Income (ttm):
EPS (ttm):
P/E (ttm):
PEG (5 yr
expected):
P/S (ttm):

2.6

B
0.37
28.89B

N/A
N/A

0.41
4.33B

0.27
9.84B

0.12

0.25

0.09

0.07

0.32
282.95
M
0.07

14.50B
1.33
20.18
1.81

12.12B
3.96
12.86
0.56

840.26M
0.85
40.05
17.20

5.29B
6.51
19.70
0.23

N/A
1.33
18.22
1.51

1.85

2.25

0.98

1.11

1.02

Divisions

Appliances for Business/Consumers


Appliance Filters and Accessories, Cooktops, Dishwashers, Dryers, GE
Artistry Series, GE Cafe Series, GE Monogram, GE Profile Series,
Microwaves,

Refrigerators,

Ranges,

Small

Appliances,

Wall

Ovens,

Washers, Water Heaters, Service and Support


Aviation
Aviation Services, Aviation Systems, Business and General Aviation,
Commercial Engines, GE Capital Aviation Services (GECAS), Marine
Engines, Military Engines
Capital
Commercial Lending and Leasing, Consumer Financing, Energy Financial
Services, GE Capital Aviation Services, Real Estate Financing, Retail
Financing

Consumer Electronics
General Imaging, JASCO Products

8|Page

Critical Power
AC/DC Power Supplies, Automatic Transfer Switches, Critical Power
Distribution,

Custom

Capabilities,

DC

Power

Services,

Distribution,

Inverters, Isolated DC/DC Converters, Large Power Plants, Management


Software,

Medium

Power

Plants,

Non-Isolated

DC/DC

Converters,

Paralleling Switchgear, Power Quality Services, Retrofit Power Solutions,


Small Power Plants, Surge Protective Devices, UPS Global Services, UPS Single Phase, UPS - Three Phase
Energy Management
Automation and Process Control, Controls, Critical Power, Drives, Electrical
Distribution, Geospatial Systems, High Voltage Equipment, Industrial
Communications, Monitoring and Diagnostics, Motors and Generators,
Power Conversion, Protection and Control, Smart Metering, Substation
Automation, Utility Operation Systems
Healthcare
GE Blueprint for Low Dose, GE Healthcare, GE Healthcare Education, GE
Healthcare Life Sciences, GE Healthcare News, GE Healthcare Products,
GE Healthcare Services, GE Healthcare Specialties
Home Improvement
AvantaPure, Homespring, Home Standby Generator Systems, Pro Elite,
Sealants
Housewares
Housewares
Industrial Solutions
Aftermarket, Arc Flash Solutions, Busway, Circuit Breakers, Contactors,
Conversion Kits and Trip Units, Critical Power, Drives, EV Charging,
Lighting Control, Load Centers, Metering, Modular Metering, Motor Control
Centers, Panelboards, Power Equipment Buildings, Push Buttons and Pilot
9|Page

Devices, Relays and Timers - Control, Services, Solenoids and Limit


Switches, Starters, Surge Suppression, Switchboards, Switches and
Disconnects, Switchgear, Terminal Blocks, Transformers.

Intelligent Platforms
Avionics, Business Process Management Software, Computing Platforms,
Control Platforms, Data Management and Analytics Software, Embedded
Computing and Rugged Applications, Industrial Automation, Industrial
Automation (HMISCADA) Software, Industrial Software, Manufacturing
(MES) Software, Real-time Operational Intelligence
Lighting for Business/Consumers
Automotive Lights, Compact Fluorescent Lighting, Decorative Lighting,
General Purpose Lighting, Halogen Lighting, High Intensity Discharge
Lamps, LED Lights, Lighting Ballasts and Drivers, Lighting Controls, Linear
Fluorescent Lighting, Specialty Lighting, Track and Recessed Lighting,
Vanity and Pendants
Mining
Controls and Industrial Automation, Mining, Mining Data and Analytics
Software,

Mining

Equipment,

Mining

Infrastructure,

Mining

Power

Conversion, Mining Power Distribution, Mining Productivity Solutions,


Mining Water Treatment
Oil and Gas
Condition Monitoring and Diagnostics, EOR Solutions, Fuel Dispensers, Full
Range LNG Solutions, Gas Storage Solutions, Industrial Power Generation,
Inspection

and

Non

Destructive

Testing,

Land

Drilling

Solutions,

Measurement and Sensing, Offshore Drilling Solutions, Offshore Solutions,


Plant and Unit Controls,

Pipeline

Integrity

Services, Refinery

and

Petrochemicals, Subsea Solutions, Unconventional Resources

10 | P a g e

Personal Healthcare
GE Diabetes
Power and Water
Controls and Automation for Power, Controls and Automation for Water,
Gas Compression, Power Generation, Aeroderivative, Heavy Duty and
Combined Cycle, Gasification, Generators, Nuclear Energy, Solar Power,
Steam Turbines, Water Treatment Equipment and Chemicals, Wind
Turbines.

Power Conversion
Brilliance LV Drive, Compact Pods, Cylindrical High Speed Rotors, Diesel
and Gas Engine Driven Generators, Direct Drive Wind Turbine Generators,
Doubly Fed Induction Wind Turbine Generators, Dynamic SVC Drives,
Flameproof Induction Motors, Gas and Steam Turbine Driven Generators,
High Performance Controller, High Speed Motors, Hydro Generators, HV
Wound Rotor Induction Motors, Incident Reporting, Laminated Salient Pole
Rotors, Large Pods, Large Slow Speed Marine Motors, Low Voltage
Induction Motors, Power Electronic Controller, Remote Support and
Diagnostics, Small DC Motors, Solid Salient Pole Rotors, Wind Pitch Motors
Software
Aviation, Energy Management, GE Industrial Automation, Healthcare,
Manufacturing, Oil and Gas, Power and Water, Transportation
Transportation
Diesel Marine Power, Diesel Stationary Power, Drilling Motors, Energy
Storage, Locomotives, Railway Signaling and Communication, Railway
Traffic Control and Dispatch, Software
Appliances for Business/Consumers
Appliance Filters and Accessories, Cooktops, Dishwashers, Dryers, GE
Artistry Series, GE Cafe Series, GE Monogram, GE Profile Series,
11 | P a g e

Microwaves,

Refrigerators,

Ranges,

Small

Appliances,

Wall

Ovens,

Washers, Water Heaters, Service and Support


Aviation
Aviation Services, Aviation Systems, Business and General Aviation,
Commercial Engines, GE Capital Aviation Services (GECAS), Marine
Engines, Military Engines
Capital
Commercial Lending and Leasing, Consumer Financing, Energy Financial
Services, GE Capital Aviation Services, Real Estate Financing, Retail
Financing
Consumer Electronics
General Imaging, JASCO Products
Critical Power
AC/DC Power Supplies, Automatic Transfer Switches, Critical Power
Distribution,

Custom

Capabilities,

DC

Power

Services,

Distribution,

Inverters, Isolated DC/DC Converters, Large Power Plants, Management


Software,

Medium

Power

Plants,

Non-Isolated

DC/DC

Converters,

Paralleling Switchgear, Power Quality Services, Retrofit Power Solutions,


Small Power Plants, Surge Protective Devices, UPS Global Services, UPS Single Phase, UPS - Three Phase
Energy Management
Automation and Process Control, Controls, Critical Power, Drives, Electrical
Distribution, Geospatial Systems, High Voltage Equipment, Industrial
Communications, Monitoring and Diagnostics, Motors and Generators,
Power Conversion, Protection and Control, Smart Metering, Substation
Automation, Utility Operation Systems
Healthcare
12 | P a g e

GE Blueprint for Low Dose, GE Healthcare, GE Healthcare Education, GE


Healthcare Life Sciences, GE Healthcare News, GE Healthcare Products,
GE Healthcare Services, GE Healthcare Specialties
Home Improvement
AvantaPure, Homespring, Home Standby Generator Systems, Pro Elite,
Sealants
Housewares
Housewares
Industrial Solutions
Aftermarket, Arc Flash Solutions, Busway, Circuit Breakers, Contactors,
Conversion Kits and Trip Units, Critical Power, Drives, EV Charging,
Lighting Control, Load Centers, Metering, Modular Metering, Motor Control
Centers, Panelboards, Power Equipment Buildings, Push Buttons and Pilot
Devices, Relays and Timers - Control, Services, Solenoids and Limit
Switches, Starters, Surge Suppression, Switchboards, Switches and
Disconnects, Switchgear, Terminal Blocks, Transformers.

Intelligent Platforms
Avionics, Business Process Management Software, Computing Platforms,
Control Platforms, Data Management and Analytics Software, Embedded
Computing and Rugged Applications, Industrial Automation, Industrial
Automation (HMISCADA) Software, Industrial Software, Manufacturing
(MES) Software, Real-time Operational Intelligence
Lighting for Business/Consumers
Automotive Lights, Compact Fluorescent Lighting, Decorative Lighting,
General Purpose Lighting, Halogen Lighting, High Intensity Discharge
Lamps, LED Lights, Lighting Ballasts and Drivers, Lighting Controls, Linear

13 | P a g e

Fluorescent Lighting, Specialty Lighting, Track and Recessed Lighting,


Vanity and Pendants
Mining
Controls and Industrial Automation, Mining, Mining Data and Analytics
Software,

Mining

Equipment,

Mining

Infrastructure,

Mining

Power

Conversion, Mining Power Distribution, Mining Productivity Solutions,


Mining Water Treatment
Oil and Gas
Condition Monitoring and Diagnostics, EOR Solutions, Fuel Dispensers, Full
Range LNG Solutions, Gas Storage Solutions, Industrial Power Generation,
Inspection

and

Non

Destructive

Testing,

Land

Drilling

Solutions,

Measurement and Sensing, Offshore Drilling Solutions, Offshore Solutions,


Plant and Unit Controls,

Pipeline

Integrity

Services, Refinery

and

Petrochemicals, Subsea Solutions, Unconventional Resources


Personal Healthcare
GE Diabetes
Power and Water
Controls and Automation for Power, Controls and Automation for Water,
Gas Compression, Power Generation, Aeroderivative, Heavy Duty and
Combined Cycle, Gasification, Generators, Nuclear Energy, Solar Power,
Steam Turbines, Water Treatment Equipment and Chemicals, Wind
Turbines.

Power Conversion
Brilliance LV Drive, Compact Pods, Cylindrical High Speed Rotors, Diesel
and Gas Engine Driven Generators, Direct Drive Wind Turbine Generators,
Doubly Fed Induction Wind Turbine Generators, Dynamic SVC Drives,
Flameproof Induction Motors, Gas and Steam Turbine Driven Generators,
14 | P a g e

High Performance Controller, High Speed Motors, Hydro Generators, HV


Wound Rotor Induction Motors, Incident Reporting, Laminated Salient Pole
Rotors, Large Pods, Large Slow Speed Marine Motors, Low Voltage
Induction Motors, Power Electronic Controller, Remote Support and
Diagnostics, Small DC Motors, Solid Salient Pole Rotors, Wind Pitch Motors
Software
Aviation, Energy Management, GE Industrial Automation, Healthcare,
Manufacturing, Oil and Gas, Power and Water, Transportation
Transportation
Diesel Marine Power, Diesel Stationary Power, Drilling Motors, Energy
Storage, Locomotives, Railway Signaling and Communication, Railway
Traffic Control and Dispatch, Software.

2.7

Marketing Policy Of GE

15 | P a g e

At a recent roundtable discussion at Fortunes Most Powerful Women


Summit, Beth Comstock, the Chief Marketing Officer of GE, described how
GE approaches marketing: You have to create a platform that invites
innovative

ideas.

Unfortunately,

we

teach

marketing

and

many

companies approach marketing as if the organization does not exist. As a


result, marketing often fails because it sits outside, or is layered on top, of
the most important activities in companies. Marketing needs to be down
in the trenches and marketing leadership needs to foster a culture of
innovation that creates new products, new services, and new customers.
GE has written this approach into its DNA. In particular, GEs culture
ensures that technological innovation (the historical backbone of GE) and
commercial

innovation

(managing

with

deep

consideration

of

the

customers needs and wants) are inextricably entwined. We interviewed


Beth Comstock during her visit for the Distinguished Speaker Series at the
Fuqua School of Business, Duke University. From this talk and from other
press accounts, we derived four capabilities that constitute GEs
organizational platform for innovation. We discuss these capabilities as
part of the CMO Insights series for The CMO Survey and offer examples of
the new products, services, and customers that have resulted in a followup blog.
Capability 1: Create Marketing Innovation Internally
A big feeder of GEs marketing innovation is the ECLPExperienced
Commercial Leadership ProgramGEs first externally focused leadership
program. ECLP began in 2002 as part of Jeff Immelts commitment to grow
GEs commercial pipeline and aims to position GE as the gold standard in
marketing. The two-year post-MBA program develops a pipeline of future
leaders and also teaches the company what good marketing is and how it
has the potential to change traditional views of product development. The
program is viewed as a mutual learning experiencethe graduates bring
an external perspective and unique talent to GE and program participants
learn from GEs R&D expertise. As Comstock noted, Marketing must bring
16 | P a g e

a different viewpoint to tough problems. This involves data analytics that


produce customer insights and the ability to address customer needs in a
creative manner. She went on to point out that The best marketers are
the ones who have both the creativity and analytical skills in the right
proportion.
Capability 2: Integrate Collaboratively Within GE
There are two key illustrations of this capabilitythe Commercial Council
and the Imagination Breakthrough Process.
The Commercial Council is composed of top marketing and sales leaders
from across GE. This group meets regularly to share best practices and to
plan growth programs. In 2012, the Commercial Council monitored a new
initiative referred to as Growth Sprints. This initiative involves bringing a
GE-wide view to 3-5 key verticals/services/solutions to identify bigger
opportunities. This approach has created early success. For instance, in
the 3rd quarter, GE completed growth sprints in Germany and Brazil by
identifying significant revenue opportunities in the mining vertical and top
prospects in the food and beverage vertical. Without this integrated view,
GE

might

have

under-invested

in

or

completely

missed

these

opportunities.
In support of these activities, Comstock argues that Successful marketers
need to be good at conveying their ideas to the team and proving their
ideas to others through effective prototyping. I cant emphasize enough
how important it is for marketers to be able to translate customer insights
to their teams, their organizations, and to markets. In a different venue,
she goes on to say, When you hear marketing, most people think
advertising. While we of course do that, we have made sure that
marketing has been redefined as innovation. We expect our marketers to
be the champions of whats next. Likewise, Comstock points out that
You dont get to be a 130 year-old company without developing some
kind of resilience and an ability to be nimble. You certainly have to focus

17 | P a g e

on today, but also be prepared for tomorrow. We expect our marketing


and innovation teams to be the champions for that.
Comstock recognized the need to link GEs technological genius with its
emerging commercial capability to serve new markets, new segments,
and new customers. To do so, she created the Imagination Breakthrough
Process,

which

engagement

on

fosters

cross-company

future-oriented

talent

projects.

and

Through

cross-disciplinary
the

Imagination

Breakthrough Process, GE integrates its collective talent across functions


to forge unique solutions.

Capability 3: Collaborate with the Customer


Following the 2008 financial crisis, senior leadership recognized the
importance of improving the stickiness of GEs relationships with
customers. The strategy was to make GEs value to the client so great that
customers would not be able to afford not to work with the company. Two
approaches lie at the heart of this capability.
The Differential Value Proposition (DVP) System combines software, data,
and processes to foster conversations between GE businesses and their
clients. These exchanges start with questions such as If you had $1M of
GEs money, how would you spend it to best impact your business?
These conversations produce an assessment of the monetary value that
GE brings clients over GEs closest competitor. From there, these GE and
customer teams create plans to increase the mutual value of the
relationship. This involves mapping out promises that GE will execute
over a given time frame and a monetary value that these promises will
deliver to the client. Comstock notes, I think marketers next hurdle is a
knowledge management one. One where we have to figure out how to
start to harness the data that exists, so that you know your customer
better than they know themselves, and that you can understand and intuit
and feed them data back thats going to make them even smarter.
18 | P a g e

Comstock noted that a huge part of GEs marketing innovation is


maintaining a strong focus on the customer. Listening keeps GE focused
on a what to make for the markets approach instead of reverting to a
make and sell approach. She explained that GE regularly conducts
discovery sessions with customers, maps the customer journey (all actions
taken by the customer in the product or service area), and conducts
observational research. Comstock observes, Any successful organization
will produce a good system of tension and bring these two facets
[customer and market] together. They have to be interwoven and work
together with an inward focus of vision and outward focus of success.[1]
The key, she added, is marketings ability to translate the customer
vision to the team, your organization, and the markets.
Access GE, a web-based portal, allows all GE customers to tap into GEs
unique insights, tools, and best practices. The Access GE team is
composed of internal experts at GE who help customers tackle their
biggest business challenges. Some of GEs partnership successes in this
area include growing sales and exploring new markets, managing costs,
building a best-in-class finance function, planning and integrating a
merger, developing and retaining talent, managing regulatory, market and
competitive dynamics, and increasing operational effectiveness and
productivity. Since 2000, more than 6,500 customers have participated in
8,500 Access GE engagements.
Capability 4: Collaborate with Entrepreneurs
GE CEO Jeff Immelt recently made the point at an ECLP Conference that I
am not most afraid of our biggest competitors. I am afraid of the guy in
his garage coming up with an idea that could potentially wipe out one of
our

businesses.[2]

engagement

in

It

GEs

follows,
marketing

therefore,

that

innovation

the

takes

final
place

pillar
with

of
the

entrepreneur. GE collaborates with outside entrepreneurs to stay ahead of


the curve and maintain a forward-looking stance. One way that GE fosters
this collaboration is through contests, such as its ecomagination
19 | P a g e

Challenge. GE casts a wide net for new business ideas by offering large
cash prizes and new business opportunities for entrepreneurs. GE melds
an open call for ideas in this business challenge with a large commitment
to invest in winning companies and commercialize their ideas quickly. The
ecomagination Challenge is part of the larger initiative ecomagination
Platform,

which

Comstock

describes

as

platform

for

business

development [that is] basically a shadow P&L across the company.


Ireland-based FMC-Tech, a smart grid technology company, won GEs 2010
ecomagination Challenge. As a result, GE and its venture capital partners
invested $55M in FMC-Tech to quickly commercialize its unique technology
real-time power line monitoring that improves utility distribution
automation systems. FMC-Techs solutions provide utilities with a new
level of grid intelligence through real-time information on power outages,
dynamic power line capacity ratings, and assistance for maintenance and
repair crews. FMC-Techs impressive on-the-ground success after the
ecomagination win prompted GEs acquisition of the company in late
2011. FMC-Techs expertise in online power management seamlessly
complements GEs expertise; its integration into GEs portfolio will allow
GE to drive faster technology developments and to offer broader-based
utility solutions.
The Fruits of the Innovation Platform
The four capabilities have paid off for GE. In a follow-up blog, we will
address the new products, new services, new markets, and new business
models that have resulted from this platform.
2.8

Marketing Strategy of GE

Discuss Marketing Strategy of General Electric within the Marketing


Management forums, part of the PUBLISH / UPLOAD PROJECT OR
DOWNLOAD

REFERENCE

PROJECT

category;

The

General

Electric

Company, or GE (NYSE: GE), is an American multinational conglomerate


corporation incorporated in the State of New.
20 | P a g e

The General Electric Company, or GE (NYSE: GE), is an American


multinational conglomerate corporation incorporated in the State of New
York.

The

Company

operates

through

five

segments:

Energy

Infrastructure, Technology Infrastructure, NBC Universal (NBCU), Capital


Finance and Consumer & Industrial. In 2010, Forbes ranked GE as the
world's second largest company, based on a formula that compared the
total sales, profits, assets, and market value of several multinational
companies.

So in come Strategic Business Units (SBU's). A large corporation may have


many SBU's, which essentially operate under the same strategic umbrella,
but are distinctive and individual. A loose example would refer to
Microsoft, with SBU's for operating systems, business software, consumer
software
Growth/share

and
are

mobile
replaced

and
by

Internet

competitive

position

technologies.
and

market

attractiveness. The point is that successful SBU's will go and do well in


attractive markets because they add value that customers will pay for. So
weak companies do badly for the opposite reasons. To help break down
decision-making further, you then consider a number of sub-criteria:

At this stage the marketing manager adapts the list above to the needs of
his

strategy.

* One - Identify your products, brands, experiences, solutions, or SBU's.


* Two - Answer the question, what makes this market so attractive?
* Three - Decide on the factors that position the business on the GE
matrix.
* Four - Determine the best ways to measure attractiveness and business
position.
* Five - Finally rank each SBU as either low, medium or high for business
strength, or low, medium and high in relation to market attractiveness.

21 | P a g e

Now follow the usual words of caution that go with all boxes, models and
matrices. Yes the GE matrix is superior to the Boston Matrix since it uses
several dimensions, as opposed to BCG's two. However, problems or
limitations

include:

For many consumers, General Electric means one of three things: major
appliances, lightbulbs and the company that David Letterman used to
skewer every chance he got when he worked for its subsidiary NBC. Yet
despite its renown, its ubiquitous "We bring good things to life" tag and its
decades-old brand equity, GE Appliances (GEA) has been looking for a
little help in making the sale to consumers through co-branding and comarketing agreements with other known brands, including Culligan,
Calphalon

and

Lenox.

GEA shipped its first co-branded product late last summer when it
introduced its Water by Culligan Profile Performance refrigerator. Part of
GFA's new Profile Performance line, the fridge is targeted toward
professional adults ages 30-45 with household incomes ranging from
$50,000 to $150,000; it offers a built-in Culligan water filtration system.
The product bears both the GE and Culligan logos and a TV spot, running
now,, plays up the Water by Culligan connection. "We're pitching the
quality of life and the convenience," said Bruce Albertson, GEA vp of
marketing. "The partnership between GE Appliances and Culligan is a
natural

blending

of

each

company's

consumer

strengths."

The co-branded refrigerator may seem, at first, to be at odds with Ge's


own fledgling SmartWater line of home filtration and softening products,
but the strategy, Albertson said, is complementary. Consumers who aren't
in the market for a refrigerator can buy SmartWater point-of-entry
systems. The Water by Culligan product is viewed as simply another
option, even offering filtered ice cubes.

22 | P a g e

GEA began aggressively seeking out partners that were No. 1 or No. 2
brands in their respective categories more than a year ago as part of a
strategy to develop products that would deliver higher margins to the
company and greater benefits to consumers. GEA also wants to make
inroads in the high-end appliance segment, which has experienced
double-digit growth in the past couple of years, aided by strong economic
conditions; namely low interest rates, which have fueled new home sales
and

renewed

interest

in

home

remodeling.

"When we began to explore the possibility of a partnership, we conducted


research and learned that when the two names were combined, consumer
awareness skyrocketed," said Ron Rosati, Culligan's group president for
point-of-use

and

retail

markets.

GEA has also entered into co-marketing and technology-sharing initiatives


with high-profile brands that will help it aggressively boost market share
(it's now No. 2 behind Whirlpool), and to offer unique, value-added
products

that

also

fetch

higher

margins.

While appliance companies regularly do tie-ins, such as offering product


samples of, say, Tide or Cascade with the purchase of a washing machine
or dishwasher, few, if any, have embarked on full-fledged co-marketing
initiatives
GEA

approached

like
Calphalon,

GEA
the

well-known

marketer

has.
of

high-end

cookware, in April 1997 about doing a value-added promotion with its


Profile Performance electric range. The range features an oval-shaped
bridge burner that enables more cooking flexibility and distributes heat
more evenly. The first promo of the co-marketing relationship ran
October/November 1997 and offered a free Calphalon oval roast pan and
11-inch square griddle with every range purchase via mail-in certificate.
Calphalon's demographic, highly educated adults 40-55 with average
annual incomes of more than $80,000, fit nicely with GEA's Profile
23 | P a g e

Performance

line.

The alliance helped Calphalon in several ways. "We are kind of a niche out
there at the very high-end and, because we have very limited distribution,
there are a lot of consumers not familiar with the brand," said Ray
Hykoski, marketing manager at Calphalon. The partnership helped
Calphalon get into the hands of consumers who might not have
considered it before, and helps serve as a springboard for people who may
be afraid to invest in high-end cookware. Calphalon also gets the names of
consumers who purchase the range and expects to enter them into its
database for follow-up "thank you" cards with its 800-number and Web
site. It also plans to approach these purchasers with future targeted
mailings. The successful promo, which has helped GEA rev range sales,
has begun again, and is running currently through March. Hykoski said he
expects a similar promo using a different Calphalon piece to be extended
into

GEA's

ultra

high-end

Monogram

line

in

1999.

The co-marketing alliance may also lead the two partners to jointly
develop

new

cookware

and

cooking

technologies.

co-branded

GE/Calphalon range? Not outside the realm of possibility, according to


Hykoski.
GEA's co-marketing arrangement with Lenox is a value-added promo with
a technology-sharing component. GEA and Lenox engineers worked
together to develop a new feature for GE SureClean dishwashers that
helps maintain the quality of stemware and chin.
For market attractiveness:
* Size of market.
* Market rate of growth.
* The nature of competition and its diversity.

24 | P a g e

* Profit margin.
* Impact of technology, the law, and energy efficiency.
* Environmental impact.
...and for competitive position:
* Market share.
* Management profile.
* R & D.
* Quality of products and services.
* Branding and promotions success.
* Place (or distribution).
* Efficiency.
* Cost reduction.
At this stage the marketing manager adapts the list above to the needs of
his strategy. The GE matrix has 5 steps:
* One - Identify your products, brands, experiences, solutions, or SBU's.
* Two - Answer the question, What makes this market so attractive?
* Three - Decide on the factors that position the business on the GE
matrix.
* Four - Determine the best ways to measure attractiveness and business
position.
* Five - Finally rank each SBU as either low, medium or high for business
strength, and low, medium and high in relation to market attractiveness.
25 | P a g e

Now follow the usual words of caution that go with all boxes, models and
matrices. Yes the GE matrix is superior to the Boston Matrix since it uses
several dimensions, as opposed to BCG's two. However, problems or
limitations include:
* There is no research to prove that there is a relationship between market
attractiveness and business position.
* The interrelationships between SBU's, products, brands, experiences or
solutions is not taken into account.
* This approach does require extensive data gathering.
* Scoring is personal and subjective.
* There is no hard and fast rule on how to weight elements.
* The GE matrix offers a broad strategy and does not indicate how best to
implement it.
For many consumers, General Electric means one of three things: major
appliances, lightbulbs and the company that David Letterman used to
skewer every chance he got when he worked for its subsidiary NBC. Yet
despite its renown, its ubiquitous "We bring good things to life" tag and its
decades-old brand equity, GE Appliances (GEA) has been looking for a
little help in making the sale to consumers through co-branding and comarketing agreements with other known brands, including Culligan,
Calphalon and Lenox.
GEA shipped its first co-branded product late last summer when it
introduced its Water by Culligan Profile Performance refrigerator. Part of
GFA's new Profile Performance line, the fridge is targeted toward
professional adults ages 30-45 with household incomes ranging from
$50,000 to $150,000; it offers a built-in Culligan water filtration system.
The product bears both the GE and Culligan logos and a TV spot, running
now,, plays up the Water by Culligan connection. "We're pitching the
26 | P a g e

quality of life and the convenience," said Bruce Albertson, GEA vp of


marketing. "The partnership between GE Appliances and Culligan is a
natural blending of each company's consumer strengths."
The co-branded refrigerator may seem, at first, to be at odds with Ge's
own fledgling SmartWater line of home filtration and softening products,
but the strategy, Albertson said, is complementary. Consumers who aren't
in the market for a refrigerator can buy SmartWater point-of-entry
systems. The Water by Culligan product is viewed as simply another
option, even offering filtered ice cubes. "We wanted to go with a valueadded name and brand you can trust in water filtration," Albertson said.
"The most broadly known name in water is Culligan."
GEA began aggressively seeking out partners that were No. 1 or No. 2
brands in their respective categories more than a year ago as part of a
strategy to develop products that would deliver higher margins to the
company and greater benefits to consumers. GEA also wants to make
inroads in the high-end appliance segment, which has experienced
double-digit growth in the past couple of years, aided by strong economic
conditions; namely low interest rates, which have fueled new home sales
and renewed interest in home remodeling.
"When we began to explore the possibility of a partnership, we conducted
research and learned that when the two names were combined, consumer
awareness skyrocketed," said Ron Rosati, Culligan's group president for
point-of-use and retail markets.
GEA has also entered into co-marketing and technology-sharing initiatives
with high-profile brands that will help it aggressively boost market share
(it's now No. 2 behind Whirlpool), and to offer unique, value-added
products that also fetch higher margins.
While appliance companies regularly do tie-ins, such as offering product
samples of, say, Tide or Cascade with the purchase of a washing machine

27 | P a g e

or dishwasher, few, if any, have embarked on full-fledged co-marketing


initiatives like GEA has.
GEA

approached

Calphalon,

the

well-known

marketer

of

high-end

cookware, in April 1997 about doing a value-added promotion with its


Profile Performance electric range. The range features an oval-shaped
bridge burner that enables more cooking flexibility and distributes heat
more evenly. The first promo of the co-marketing relationship ran
October/November 1997 and offered a free Calphalon oval roast pan and
11-inch square griddle with every range purchase via mail-in certificate.
Calphalon's demographic, highly educated adults 40-55 with average
annual incomes of more than $80,000, fit nicely with GEA's Profile
Performance line.
The alliance helped Calphalon in several ways. "We are kind of a niche out
there at the very high-end and, because we have very limited distribution,
there are a lot of consumers not familiar with the brand," said Ray
Hykoski, marketing manager at Calphalon. The partnership helped
Calphalon get into the hands of consumers who might not have
considered it before, and helps serve as a springboard for people who may
be afraid to invest in high-end cookware. Calphalon also gets the names of
consumers who purchase the range and expects to enter them into its
database for follow-up "thank you" cards with its 800-number and Web
site. It also plans to approach these purchasers with future targeted
mailings. The successful promo, which has helped GEA rev range sales,
has begun again, and is running currently through March. Hykoski said he
expects a similar promo using a different Calphalon piece to be extended
into GEA's ultra high-end Monogram line in 1999.
The co-marketing alliance may also lead the two partners to jointly
develop

new

cookware

and

cooking

technologies.

co-branded

GE/Calphalon range? Not outside the realm of possibility, according to


Hykoski.

28 | P a g e

GEA's co-marketing arrangement with Lenox is a value-added promo with


a technology-sharing component. GEA and Lenox engineers worked
together to develop a new feature for GE SureClean dishwashers that
helps maintain the quality of stemware and chin.

Chapter -3: Findings and Analysis

3.1

INT. Marketing Strategies Adopted by the Company

The company basically employs two strategies in its international


marketing efforts. The first one involves investing and tapping the
internal market within the reach of the company. This is done in
order to utilize the business principle which implies that a business must
be employee oriented if it desires to be customer oriented.

The internal marketing strategy is a business philosophy that utilizes


employees potential in helping tap external market for the business.
Among major competitors, it has become a widely accepted fact that a
strategy cannot work in the market efficiently if it is not well marketed
internally. For GE to achieve its objective of reaching the wider world, the
29 | P a g e

internal environment is treated as a prerequisite. The goal in this strategy


is to convert employees to adapt and cultivate a culture of relationship
marketing.
For

GE

to

effectively

penetrate

the

international

marketing,

the

requirements of the internal market are first met and are then converted
to the external market. In business it is recognized that inability of an
organization to meet the needs of the employees leads to employees
defection which breaks up the relationship that they had built with the
customers.
In promoting the internal market strategy, GE recognizes its
employees as customers of the organization. The idea is that if products
supplied by the company are valued by the employees, it is likely that the
employees will bring in more customers. To promote this strategy, GE
invests in their employees by providing good working environment and
providing necessary tools required to perform various tasks in the
organization. By being highly valued and appropriately compensated, the
employees at GE are usually the first customers to purchase and promote
any product rolled in the market. Another important consideration in this
strategy is the involvement of employees in developing a quality approach
the work they do in the company. Every employee has the responsibility of
promoting production of quality products within the business.
The

next

strategy

adopted

by

GE

regards

the

external

environment of the organization. In the external market, several


aspects are considered to be crucial by GE. This market involves the
review of the general economy and the likely market for the companys
products. In seeking the external market, the company considers several
factors such as fiscal, economic, technological developments, legal
requirements and the business environment. Attention is also paid to
existing and potential competitors in the business within the external
environment.
30 | P a g e

The micro and macro environment for the companys business are
also put into consideration. The microenvironment is the combination
consisting of customers, suppliers and other stakeholders in the company.
GE is a huge company that treats suppliers as insiders and crucial
partners in the running of the business. The customers of GE are not seen
just as potential people willing to spend their money in the business but
the company has put efforts of integrating the companys view and the
view of the customers. Customer service is very core in GE and all
multinationals dealing under GE is supposed to adopt this view. Three
components are cited as crucial with regard to quality afforded to
customers. These include the employees, the process and the customers
themselves.
GE recognizes the needs of customers and invests in meeting their needs.
Customers needs identified in GE includes competitive prices, service and
correct transaction processing, on time delivery and performance. By
analyzing the needs of the customers GE is able to invent new modalities
which produces the required satisfaction among the customers.
Another strategy implemented by GE is relationship marketing
among its major consumers. This strategy basically aims at retaining
existing customers. This strategy concentrates on building long term
relationship with the customers which is regarded as very vital in the
running of business. This strategy is based on the business recognition
that customers build relationship with people rather than products. To
build this relationship, frequent contact with the customers is enhanced
and the customers are encouraged to keep on making enquiries within the
business. In its efforts to build strong relationship with the customers, GE
has established a modern state of the art answer centre, which is
regarded as one of the best in the world where customers gets free
personalized attention around the clock. The center has been able to
create opportunity for GE to be in contact with customers for longer time
31 | P a g e

and hence creating the opportunity for tapping even customers who may
get dissatisfied in the course of doing business. This contact helps the
customers of GE to understand the companys commitment to them and
the value they attach to their customers. This has the effect of improving
and cementing the very crucial relationship that GE attempts to build. The
knowledge obtained from customers interactions provides relevant
information with regarding to sales and marketing and possibilities of new
products development.
As part of its internal environment, GE makes efforts to ensure that its
suppliers adopt practices that comply with its environmental and safety
standards. The company has a program for helping their suppliers in new
markets to enhance their environment, health and safety standards. This
is achieved through conscious efforts to increase awareness of important
issues among its suppliers. By doing this, GE is able to protect its
international image and integrity as well as safeguarding the quality of
products.
Another crucial strategy adopted by GE is diversification. Recently,
the company diversified to offering financial services. This diversification
is adopted in the companys efforts to ensure that it can offer all services
that its customers deem necessary. This attempt was initially started as a
credit financing stream where customers would obtain financing for the
products they wanted if they didnt have enough money.

3.2
I.

SWOT Analysis for GE


Strengths
o

Global recognition and strength-The company is positioned 5th


in Fortune 500 list, with a massive operation base in over 160
countries. The products of the company are well distributed in

32 | P a g e

all major markets making the company a household name for


its products.
o

Diverse product range-The Company has invested heavily in


11 major business fields giving it a wide range of products.
These products are categorized into both long and short term
products. Among the long term products are long term aircraft
engines while short term products include lighting products,
plastics and NBC.

A decentralized organizational structure where management is


done at the regional levels thereby reducing the burden of
cross border transactions and communication.

The company has well established marketing relationships


with both customers and employees.

II.

Weaknesses
o

Poor performance in the energy sector- The company sector,


which forms a wide financial base for the company, has been
underperforming with no signs for improvement in the near
future. This has been attributed to the ongoing financial crisis
that has massively affected major businesses and economies.

Inability to acquire expansion sites for the company- Due to its


size, the company faces monumental challenges acquiring
new sites for expansion due to existing domestic and foreign
policy framework. For instance, the companys planned
purchase of Honeywell International was denied by the
European Union.

Poor flexibility-Due to the sheer size of the company, it is


increasingly hard to effect essential changes to the business.
This means that the company can lose ready market due to its
inability to make quick decisions necessary to capture the
change.

Time to time charges of corruption cases

poor history of large scale water and air pollution


33 | P a g e

III.

Opportunities
o

Increased Geographic growth- The Company has potential to


tap into geographically strategic paces such as China and
select countries in Africa such as Egypt and South Africa.
Improved presence in the global market implies a significant
potential for more business opportunities.

Research

and

Development-

The

company

massive

investment in training and adoption of relevant technology


positions it in a strategic position for competing with other
major world players.
o

Improved Customer service provision

The company has adopted a customer focused strategy where


customers are given access to all information needed within
the short time possible. Enhancing professional raining for
customer service training on its staff is also an immense
potential for the company.

Mergers- The recent merger between Vivendi and NBC


presents more opportunities for the company in the media
business.

Diversification and innovation of new products such as


provision of financial services.

IV.

Threats
o

The Global Financial Crisis- Economy slowdown in major


economies such as the US and UK is a potential disaster for
the company since 40% of its gross revenue is generated
overseas.

Cut-throat Competition- The constant change in technology


raises up great competition as competitors adopts diverse
strategies to remain in business. The continuous existence of
the business requires smart strategies, which are not always
34 | P a g e

timely. Major competitors to the company includes Philips


Electronics, Citi group and AG
o

Intense scrutiny- Huge business attracts a lot of scrutiny from


governments, private entities and individuals. Any perceived
non performance leads to investor apathy especially in the
stock market.

The unpredictability of environmental patterns in some


potential foreign markets.

3.3

Importance of INT. marketing to the Company

International marketing is very important for this company in its quest for
generating substantial profits. For todays businesses, survival depends on
their presence on the global world market. For such a company to
effectively participate in global competition, a lot of efforts are needed in
improving the effectiveness of the companys top management in making
crucial decisions at the right time. International market for GE means new
markets in places and regions that are new and that are not supplied with
the products the company offers. Expansion of the company in the
international market is important in connecting the company with new
sources of raw materials that are needed in their production lines. Since
GE is a highly diversified company, there is also a great need for creating
a highly diversified market that can absorb the diverse products offered
by the company. Marketing is primary to all activities carried out by GE. In
the international market, marketing is important to GE since it helps
extend the domain for competitive enterprise.

This implies that this level of marketing helps to break economic and
nationalistic barriers and helps build economic unity among different
regions economies. Marketing that is regarded as crucial by GE is that
which concerns developing countries such as Africa and Asian giants such
as China and Japan. In the upcoming international markets, marketing
35 | P a g e

helps in the innovation of new products that are in line with the upcoming
market trends. It also helps in expanding existing market, accumulate
more capital, helps in balancing international payments, exchange
primary products, increase profits and extend production facilities. To
achieve working solutions for the international market, the company
borrows from other highly diversified companies which have faired well in
the international foray. It can however be argued that GE has not
completely utilized its potential in tapping the larger world market. Part of
the probable reasons why this company has not completely utilized the
global market is associated with the high cost required for such ventures
and the complexity of diversity due to its highly diversified aspects. There
are however several ways through which this company can improve its
access to the world market and remain effective despite its diversification.
3.4

how can improve its int. marketing strategy

The international market is considerably different as compared to local


and regional markets. This is because it entails the possibility of meeting
different markets dominated by different cultures. To achieve success in
effective international penetration, several ways can be adopted and
utilized.

The first strategy would be comprehensive market survey that would


effectively establish the needs that potential customers of that market
are. The survey should be carried out by professionals who should include
as part of their team local professionals well oriented with local market.
The survey would help the company establish the kind of products that it
can offer to such markets. The other consideration would be to use other
companies existing in the local markets as frontiers of the company in
such markets either as dealers or franchises.
The other strategy would be recruitment and training of employees
sourced from the local markets. Such employees would give the company
36 | P a g e

the advantage of being conversant with local languages and the general
trends of business within their local environments. Use of print and
electronic media would also be very crucial in establishing international
markets and this would call for establishment of liaison between major
media sources and the company. Advertisement in the media should be
professional and should portray the integrity and presence of the
company.
3.5

PESTEL ANALYSIS

Political
General Electric is a multinational company that has to deal with many
political systems in different countries. Some countries have a good
environment for business growth and survival but others present difficult
conditions. Government intervention in the United States is minimal while
in other countries, such as China, government control over business is
high.
Economic
General Electric is affected by fluctuations in interest rates, exchange
rates, and money value. Factors such as deflation and inflation as well as
government spending in different countries often influence business
productivity and profitability.
Social-Cultural
Norms, culture, religion, and social customs often determine how a
business should conduct itself in a particular country or environment. With
General Electric being a multinational company, it has to adapt to
different

cultural

challenges.

The

culture

in

particular

country

determines the working hours, employment policies, procedures for


appointing managers, and the type of goods to be produced.

37 | P a g e

Technological
General Electric in a leader in innovation and technology. It rate of
technological advancement varies with each country in which GE has
invested in depending on the amount of resources available. The countries
with the highest rate of technology advancement are the Unites States
and Japan, both of which General Electric has a presence. Globally,
technology is advancing at a very high rate.
Environmental
General Electric is involved in many different industries, one being oil and
gas. GE has invested billions of dollars to improve fracking, or drilling, in
order to protect the environment. General Electric also has significant
experience in wind energy, solar, and nuclear power.
Legal
General Electric is involved in over 120 different countries which makes
compliance important. GE infuses compliance into every aspect of its
business. It is imperative that GE maintains its high level of compliance
when dealing with national as well as international businesses.

38 | P a g e

Chapter-4:Recommendations & Conclusions

4.1

Recommendations

General Electric is a very successful company with very few weaknesses.


The company continues to grow and improve its competitive advantage.
Currently, GE is beating its competitors and continuing to increase its
profitability. The task of thinking of recommendations for GE was very
difficult.
GE has found great success using numerous business units that have their
own business unit managers. This has been very beneficial for GE but it is
also important to point out that GE needs to continue communication as a
whole in order to remain profitable. The business units need to
communicate with one another and not just focus on their specific unit.
GE is an extremely diversified company. Its products range from
technology, energy, automotive, aviation, and home appliances to
financial services and insurance services. Diversification can shield a
company from risks but it can also be detrimental to the company. This
over-stretching

can

slow

down

decision

making

my

previous

recommendation even more important. If even more diversification


occurs, it could become too much to manage. My recommendation is that
GE moves forward with its current business units and halts anymore
diversification at this time. If the company grows and diversifies too
rapidly it may become a problem. If GE starts noticing that they are losing
profitability or that a competitor is taking over some of their market share

39 | P a g e

it may be beneficial to discontinue one or more of their unsuccessful


business units; however, this is not a problem at this time.
I also recommend that GE continues to invest in research and
development in order to curb competition. GE is ahead of its competition
in most of its business units but by coming up with innovative products,
they could pull ahead even further.
My final recommendation is that it may be beneficial to have the CEO and
Chairman of the Board positions separate. Most companies in the United
States have the same person for these positions but in Europe this is not
the case. Separating these positions could be beneficial and make the
Board of Directors more independent.
GE is a global company. The achievements made by the company over the
last couple of decades show the firms commitment to achieving global
presence in all corners of the world. Since the company has a wide capital
base, it has potentials to reach a wider market than it has currently
achieved It is recommended here that:

The company should invest in high level business surveys in


upcoming markets to expand its market base.

The company should engage local professionals in their targeted


regions who would help actualize the real customer needs in such
markets.

Company should adopt up to date technology to help fast track its


services and product logistics in its wide markets. This calls for
adequate training for employees on ways and modalities with which
new technology should be used. Such technology could be in the
area of communication, international money transfer, shipping and
logistics and effective diplomacy necessary to maintain budding
foreign relations.

4.2

Conclusion
40 | P a g e

The International Market is very important in todays business. The growth


of technology has established the world as a global village and has given
businesses

perfect

opportunity

for

reaching

to

the

previously

unreachable markets. GE has a well established capital base that ensures


that it can reach to more regions than it has done. The strategy that
needs to be adopted by this company in these efforts must be based on
exploiting the immediate internal market which would effectively open
room for wider penetration in the external market.
The international market presents great potential for the company since it
would assist in expanding production facilities for the company which
would effectively help in maximizing the company profitability. One of the
challenges facing this company is the adoption of flexible strategies that
can be adopted fast and effectively. The company should hence work
towards developing working solutions that would help develop strategies
that would address this weakness.

Reference

Kotler, P. (2001). Marketing Management (10 th

edition), Tsinghua

University Press.

WWW.GE.Yahoo .com

Global Marketing(4th edition by W J .Keegan & Green),Page -225

Published papers on marketing strategy

by many international

companies on google in Internet

https://sites.google.com/site/generalelectricirr/home

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