GE's International Strategy

General Electric relies heavily on its international market. The company has presence in over 100 countries and receives over half of its revenue stream from these markets. Looking more in depth at GE's international strategy I would say they run a multidomestic strategy as far as their corporate-level strategy is concerned. Multidomestic strategy is an international strategy in which strategic and operating decisions are decentralized to the strategic business unit in each country so as to allow that unit to tailor products to the local market. Their strategy is called "Company to Country".

Northern Asia (China) - focuses on the local infrastructure and resources China has in order to be apart of the prosperous growth that is happening currently

Southeast Asia - focusing on technology in Malaysia Hospitals, clean energy and water solutions in the Philippians, aircraft in Vietnam

Australia/ New Zealand - electronic bridges (Australia), investments (New Zealand)

Europe - infrastructure

Middle East/ Africa - helping boost governments in Africa, investments in oil, infrastructure, and aviation

Latin America - aiding in transportation

North American - leadership and innovation

Because of GE's large presence around the world their choice of entry is very diverse depending on their products and their customers. They take part in every entry modes: exporting, licensing, strategic alliances, acquisitions, and new wholly owned subsidiaries.

Level of Diversification

General Electric has three business areas it focuses in: infrastructure, finance, and media. I think each one of these subgroups are very different from one another and there is minimal overlap between them. As a result, I would say GE has a very high level of diversification and that the groups are "unrelated". The definition of unrelated means the less than 70% of revenue comes from the dominant business, and there are no common links between businesses. There services and products within their three subgroups consist of a large level of diversification. They include: appliances, aviation, healthcare, consumer electronics, lighting, media/entertainment, oil/gas, energy, rail, electrical, finance-business, finance-consumer, software/service, and water. This variety provides some overlap within the subgroups however still remain an unrelated diversification overall.

- Aaron Sherman

General Electric

Company Overview

Founded in 1892 by Thomas Edison
Headquartered out of Fairfield, CT
304,000 Full-Time Employees

Stock Information

Stock Price: $16.48
52 Week Range: $8.43-17.52
Dividend Yield: $0.40
Beta: 1.64

-Aaron Sherman