Diversification Strategy at GE

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Introduction Diversification strategy is noted by Martínez-Campillo,& Fernández-Gago (2011) as a type of corporate strategy that is employed by an organization that aim at increasing its profitability by means of enhanced sales volume which is realized via the engagement in new markets as well as new products. Diversification can take place either at a corporate level or at business level. If diversification takes place at business level, then the business is likely to expand to a totally new industry segment within the industry that it operates in while if it is at corporate level, then the corporation is venturing into business that exists outside of its existing unit of operation. Several companies have attempted to employ this strategy in order to improve their profitability with success and failure being realized in almost equal measure (Kenny,2009).In this paper we research on two main corporations that have experienced success and failure with their various diversification strategies. We then compare and contrast their diversification strategy as well as evaluate the main reasons for individual success or failure of the diversification strategy of each of the corporations. General Electric General Electric Company is noted by GE (2008) to be a highly diversified media, technology and financial company that is very active in a broad spectrum of industries like Aerospace and Defense, Medical Imaging, Power Generation, media content, Energy and many others. General
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