Question

Please answer the following discussion in 3 complete paragraphs.

General Electric - A Model of Change and Innovation

Very few companies have the longevity and staying power like General Electric has proven. The roots of this industrial giant date to 1878 with Thomas Edison's Electric Light Company. Visit the General Electric website and explore it's history to see how light bulbs were the beginning of GE's transformation into such diverse industries such as railroad engines, healthcare, commercial lending, aviation and household industries just to name a few.

Why should a company innovate in this manner? What are the pros and cons of this type of innovation? Can you think of any other companies that owe their present existence to the innovation decisions they made previously?

Answer 1

ANY COMPANY should innovate like GE to seize new opportunities created by changes in technology and the economy. SUCH INNOVATIVE TECHNOLOGY helps drive both growths for the company as well as more efficient and productive operations for customers. This company is admired nit only for its products but for its culture in the way they develop leaders. The company depicted the consistency of commitment to product innovation. Thus a company must show its commitment to innovation with large expenditure on research and development.

Such rapid progress may sometimes lead to rapid obsolescence as wel.this type of strategy in which there is complete focus on delighting customers with continuous innovation may sometimes lead to forgetting to maximise shareholder value. GE management philosophy of getting out of slow-growing markets (“dogs”) and moving into fast growing markets (“stars”) may lead to turning fast-growing market into a slow-growing market tomorrow. The strategy should be to take even slow-moving sectors and turn them into something of great value like Amazon and apple Inc. Is doing today.

Similarly Procter and gamble is also into owing its present existence to the innovation decisions it made previously. Its problems are rooted in products in slow-growing markets and an overvalued stock price. PG management is struggling to adapt to the new spending habits of the modern consumer