General Electric was formed in 1892 by merging a few of the biggest electric companies at the time. In 1876, Thomas Edison, (one of the founders of General Electric) opened a new laboratory in Menlo Park, New Jersey. Out of the laboratory came arguably the most famous invention of all?a practical incandescent electric lamp. General Electric expanded business by creating a division of their company soley for lighting. They then later became one of the top producers of computers. Some argue that they took this route because their company used more computers than any other company in the world. They later sold their computer division and reacquired RCA, who owns the NBC television network. While purchasing and selling, General Electric was able to become the third largest media conglomerate in the world. The company is composed by a number of subsections that could be Fortune 500 companies from a stand alone situation. This boosts GE's image as well as customer loyalty.
From a development point of view, GE has been buying and selling businesses as if they were financial securities. This is ironic since over half of the company's revenue is earned through financial services. GE's diversification provides the company with a degree of protection against poor performance in any one market, industry, or business category. They also have a large international presence, which helps compete with companies around the world. Strategic growth strategies for a giant of this nature takes a well-seasoned manager that has been in the business for some time. Since General Electric consumes so much market space, the leaders of the company must have a very diverse knowledge base.
General Electric: Strength and Weaknesses
General Elect ...