General Electric's Growth Strategy

General Electric's growth strategy is based on developing businesses -- from TV broadcasting to jet engines and power plants -- that are some of the most vital markets of this century. Located in Fairfield, Connecticut, it is the fifth-largest US company and has a market value of more than $160 billion, making it the most valuable (1997 Annual Report).

Its products include: aircraft engines, electronic appliances, kitchen and laundry equipment, industrial products and systems, lighting, electrical distribution, and control equipment, plastics, silicones, laminates, and abrasives (1997 Annual Report).

GE Capital Services (GECS) provides consumer and specialized financing and property and casualty reinsurance, accounts for the largest portion of total sales. Subsidiary National Broadcasting Company (NBC) is profitable with strong ratings leading to higher advertising revenues.

GE and joint venture CFM International won the bulk of the world's orders for commercial aircraft engines in 1996, its lighting business has developed a global presence, and the plastics unit has achieved record growth by supplying the computer and consumer electronics industries.

According to its 1997 annual report, GE is a "diversified technology, manufacturing and services company with a commitment to achieving worldwide leadership in each of its 12 businesses." GE operates in more than 100 countries around the world, including 250 manufacturing p

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ut what the consumer wants, and then buying a company that provides that good or service. For instance, as people became more interested in investing, it bought mutual fund wholesaler GNA in 1993 (Welch, 1998, 42). Its money market diversification is strong. GE Investment Management runs the corporation's pension assets and started selling mutual funds to the public. When scandal hit Kidder, Peabody, GE quickly sold it to Paine Webber (Greenwald, 1994, 56). In 1995, GE developed a new electric power generator that converts a record 60% of fuel to energy. Insurance is of concern to consumers so GE bought Amex Life Insurance and Life Insurance Co. of Virginia (1995) and life insurer First Colony for $1.8 billion in the following year. It gets rid of losers quickly. In the multimedia area the company sold its GEnie online service in 1996, while NBC and Microsoft formed MSNBC, a cable news channel that had better prospects (Welch, 1998, 66). That year GE and United Technologies' Pratt & Whitney subsidiary formed a joint venture to build engines for a new Boeing jumbo jet. In 1997, bought aircraft engine maintenance firms Greenwich Air Services, and UNC. Also that year GE acquired Lockheed Martin's medical imaging b

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