General

Electric’s
Corporate
Strategy
Submitted By: Group2, CS-B

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Corporate Strategy, TERM-IV
 GE Corporate Strategy
2003
Technical Leadership : GE’s
endeavors were driven by technology
and
innovation.
Services: Technical leadership created
base that was expected to provide high-
margin services for decades.
Customer Focus: "Vertical selling",
helped create stronger relationships with
customers.
Globalization: GE focussed on
globalization by making it its core
competency
Growth Platforms: GE focussed on
new ways of growth either organically
or by acquisitions. Their strategy was
to use their financial might to grow
quickly
while generating solid returns.
2006
In 2006 GE focussed on strategies
which drove competitive
advantages.
Culture: They aimed to match
their culture with long-term
investor expectations.
Preventing erosion of
Shareholder’s
Value: They exited businesses
which didn’t meet their
financial goals.
Services: In order to establish a
business with lasting value and
contribute to a better society, GE
assembled a team.
2008
Invest in Leadership
Businesses
Execution and Financial
Discipline: To increase
margins and returns, GE
defined a procedure for
operational excellence.
Growth as a Process: Focus
on growth as a process
helped deliver revenue growth
of 2-3X GDP.
Great People: GE sought
to use talent as a
competitive advantage.
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 Five Pillars Of Strategy
Technological leadership- Technical Leadership ensures a high margin, wins competitive battles, and creates new battles.
Services acceleration- Massive installed base of more than 100,000 GE jet engines, power turbines, etc. can provide high-margin services for
decades.
Enduring customer relationships- Building deeper partnerships with customers through 'an outcome-oriented service model, the one that
delivers outcomes for customers.
Resource allocation- GE is committed to allocating capital in a balanced and disciplined way, with a clear priority for dividend growth.
Globalization- GE is committed to developing capabilities and relationships in the market globally.

Modification Of Businesses:”Synergy” Strategies

Cash Flows
Strategy to Increase Revenue
1. One third of revenue of Infrastructure comes from
Focused acquisitions & organic investments in fast
growing business like Oil & Gas, Life Sciences etc, has
led to high revenue growth in infrastructure.
Discount Rate
Strategy to Reduce Risk of Businesses:
1. Through focused investments and acquisitions,
company is heading towards more focused financial
services that lowers the risk of business and adds more
value to GE Industrial Businesses.

GE Practices Six Sigma as internal business initiatives as part of their Growth Strategy
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 Assembly of Portfolio: "Selection" Strategies
Invest & Grow Strategy- Protect Position
1. Refine the portfolio to capture market opportunities to enable a more stable portfolio with a
high growth rate.
2. To enhance infrastructure earnings by organic investment and focused acquisitions of fast-
growing companies like Oil & Gas.
3. Reduce Risk of Portfolio: To build a focused Financial service company that has a lower risk
profile.
4. Ample amount of investment in R&D to gain market share.
5. The company positions itself as a leader in productivity.
6. Company execute on focused acquisitions, capital efficient way to grow.

Acquisition Strategy
Acquisitions made to strengthen its Strategic Business Units in Financial Services Industry and Healthcare Industry, is a clear sign of
GE’s strategy for Diversification where GE strived for expanding into business not known to GE in the past. GE’s S trategy as a
Position was to remove the “electrical equipment company” mark from its brand and rebrand itself as a major player in financial
services market.
GE pays high dividends as part of its strategy to reap long term growth.
It doesn't invest in companies like movie studio which has unpredictable earnings, rather invest in business that can add substantial
value.
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