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General Electric’s product differentiation strategy

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  1. Introduction.
  2. Consumer electronics division: An overview of strategy.
  3. Why GE's strategy will succeed.
  4. Why GE May Fail.
  5. Conclusion.
  6. References.

Throughout the course of its development, General Electric has undergone a number of changes. While many of the changes have been quite overwhelming for the organization?such as when Jack Welch took over in 1980 and drastically downsized the organization?the end result has been the development of an organization that has streamlined productivity and management. Although the organization recently acquired a new CEO, Jeffrey Immelt, in 2001 the organization has sought to remain focused on the methods and techniques that have made the General Electric successful in the past.
With the realization that General Electric has developed such a successful organization, there is a clear impetus to examine the success of the organization and what has promulgated this outcome. Using this as a basis for investigation, this research considers the Consumer Electronics Division of General Electric and the specific strategy that they have utilized for success. Based on this information, five reasons as to why this strategy might succeed and five reasons why this strategy might fail will be discussed.

[...] Why GE's Strategy Will Succeed Considering the specific reasons as to why the current strategy employed by General Electric will work, it seems reasonable to argue that this strategy has the following benefits: Facilitate Strong Brand Recognition: The use of technology as a means to develop products will enable General Electric to develop itself as a leader in innovation. By capitalizing on this organizational position, General Electric should be able to enhance the sale of all of its consumer products, even those that are not technologically superior to the competition. [...]

[...] Critically examining what has been written about the Consumer Electronics Division of General Electric, it seems reasonable to argue that at the present time, the organization is highly focused on using product differentiation as principle strategy. Through the development of its new line of Profile products, General Electric is combining new advances and innovations in technology as a central means for the organization to differentiate itself from its competitors. The organization is clearly hoping that by providing innovative twists on new products they will be able to spur both sales and consumer interest in the new products offered. [...]

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