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Case Analysis General Electric Case Anal PDF
Case Analysis General Electric Case Anal PDF
General Electric
Case Analysis
Question-1:
Discuss the importance of B2B marketing and a strong B2B Brand. How does it differ
from consumer marketing?
Answer-1:
B2B marketing is important because B2B market is huge and growing rapidly.
Business organizations not only sell, they also buy vast quantities.
Many well-known brands belong to business markets such as GE, Siemens, ABB.
Buying process is a long decision making process and there are many participants in
that process. B2B markets motivate companies to achieve technical innovations and
industrial improvement.
• There are fewer but larger professional buyers, requires multiple calls
and personal relationship.
Secure Future
Business Create Brand
Differentiate
Loyalty
Brand
Risk Reduction Differentiate
Increase Sales Information Efficiency Marketing
Value Added
Command Create
Price Create Brand Preferences
Premium Image
Did Jeff Immelt and Beth Comstock do the right things by dropping “we bring good
things to life” for “imagination at work”? Why or why not?
Answer-2:
Yes they did the right thing by dropping ’we bring good things to life’ because after
twenty three years, a new advertisement campaign and motto is needed to show the
progress in GE; a company where a new management is appointed, should renew
themself and new advertisement campaign with a new motto is the only way to give
progress message to customers.
Another thing, new CEO and top management would be able to give clear message
about new vision. New motto should reflect the new approach of top management.
’Imagination at work` was successful in that sense because it gives the message of
focus on innovation and high technology in industry market. Innovation and high
technology focus is the new vision so chosen motto was proper.
Jeff Immelt focused on moving away from consumer markets to business markets
and global expansion goals.
Investors wouldn’t respect GE for consumer goods as they would for innovation
mindset. New ad was for shareholders who would buy GE stocks, not for customers
buying electric bulbs.
R&D budget is increased to $2.7 Billion to support the goal of being innovative and
high tech company and company reorganized to focus on industry business.
Surveys showed that custom reaction was positive; customer attitudes changed
towards GE, perception of GE as an innovative company increased 35 percent,
offering high tech solutions increased 40 percent and being dynamic increased by 50
percent.
As seen from the result, new advertisement campaign was successful, they did the
right thing by dropping dropping “we bring good things to life”.
Answer-3:
Impact on Employees1
Impact on Consumers
Impact on Shareholders
1
Internet, strategic brand management in GE
Innovation and high technology motivation in GE showed its self in following years.
Dream session with customers showed that customer demands clean technologies.
GE recognized the opportunity here and focused on green technologies.
Ecomagination project is for producing eco friendly products and in short time,
revenue crossed $17 Billion in 2008. This project also increased GE prestige as a
green company.
Ecomagination
• Revived focus • A new way of
on innovation & looking at
• Cleaner, better
technology healthcare.
technology for
the
environment.
Imagination at Healthcare
work Reimagined
Can Immelt transform GE’s approach of innovation (risky, unknown areas like fuel
cells, solar energy, hydrogen storage, and nanotechnology) versus past strategies of
improvement of current technologies?
Answer-4:
Re-organization in 2005 helped GE to achieve the goal of being innovative and high
tech company by focusing on industrial business.
R&D budget is increased and three new house of magic, global research centers are
launched, 5.000 engineers are added in three years.
Being a high tech innovation company not only welcomed by industry but also by
investor and shareholders. This new approach led GE to create new business such
ecomagination and industrial internet which was not possible before Immelt.
Ecomagination project is for producing eco friendly products and in short time,
revenue crossed $17 Billion in 2008.
A computer network using the same set of communications protocols to benefit industry2
2
http://www.ge-ip.com/zh/industrial-internet
Capture and transfer knowledge easily between your people, systems, and sites
Answer-5:
Beth Comstock is current chief marketing officer. What she should focus on
“imagination at work” approach and continue to give industry and investors that GE
will continue to be innovative high tech company.