General Electric Continues to Simplify Brand
While it is true that General Electric was recently delisted from the New York Stock Exchange after 110 consecutive years on the index, it shouldn’t come as a surprise to those who have been watching the brand.
In a recent episode of Speaking Human, we covered GE as one of our favorite 100-year-old (or more) brands. In the podcast, we mentioned how GE has been undergoing some dramatic shifts in their strategy for the future of the company. This includes the transitioning of GE to a software and analytics company—selling much of its industrial solutions and water and appliances divisions.
And now, General Electric is going a step further by shifting focus on its Aviation, Power and Renewables divisions, while separating its Healthcare and oil and gas drilling businesses. According to John Flannery, the Chairman & CEO:
With respect to our portfolio, our Aviation, Power and Renewables businesses will be the core of GE going forward. These are 3 formidable franchises where we’ve built leadership positions over many decades. These businesses also have significant strategic linkages. They share technologies, digital and additive strategies and business models. While our core Aviation, Power and Renewable businesses can thrive inside of the current GE framework, we think substantial value can be created by moving other businesses outside of GE. To implement that strategy, we are creating a separate stand-alone Healthcare company and we also intend to fully separate BHGE. These are 2 strong and competitive businesses with leading positions and strong growth prospects but they both have various constraints operating inside the current GE construct. We believe these businesses can achieve greater results for employees, customers and our owners as stand-alone companies.
This is a great example of how powerhouse brands can adapt and evolve, even after they’ve become weighty with time. GE is definitely going through a period of refocusing, but it looks like the direction they’re taking will set them up for future prosperity.
- SOURCE: GE Investor Relations – Company Update
- BRANDS: GE
- WHY YOU WILL LOVE IT: Because you listened to our Speaking Human #100 podcast episode and you’re connecting the dots between 100+ year old brands and this BUZZ post. Or you just love General Electric.
