Ge Imagination Breakthrough

1042 WordsOct 18, 20125 Pages
GE Imagination Breakthrough Q : 1 What is your evaluation of Immelt’s new organic growth strategy? Why change GE’s existing successful strategy? Is it reasonable to expect that a $125 billion global giant can significantly and consistently outperform the underlying economic growth rate? What is your evaluation of Immelt’s new organic growth strategy? Answer: Immet’s new organic growth strategy is made up of following elements: * Technical Leadership – Immelt identified technology as a key driver of GE’s future growth and emphasized the need to speed up the diffusion of new technologies within GE and turn the corporate R&D into an intellectual house. * Internationalization – GE’s major opportunities for organic growth would be…show more content…
* Leveraging on the transcontinental rail traffic boom after 2004. * Highly motivated & dynamic marketing team which was successful in capturing national as well as international markets. 3b: Initial difficulty in obtaining orders for EVO * Unexpected failure of AC6000 in the market has raised the concerns for the GE locomotive EVO as well in the market. * It became very difficult for GE to regain the customer confidence in spite of developing good product. * GE played gamble & took the financial risk of leasing 1st fifty EVO units to customers for a nominal fees. The goal was to regain the customers trust by proving the engines reliability & the value of the technological advancements. * As a counter effect of 1st Jan 2005 deadline for emission regulations it was predicted that there would be a spike in demand for old products, leaving little market for EVO in 2005. These old models were in ready inventory and with much better discounts. 3c: Continual redefinition of the global EVO product and the failure to make hybrid commercially viable * Initially GE decided to develop EVO country specific during IB meeting but it was not viable because of low requirements. * Recognizing the international constraints the EVO was also developed as a product concept ‘Global Modular

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