The Future of General Electric: A Look Ahead

Introduction

General Electric (GE) is a multinational company that has been around for more than a century. It has a long and impressive history that spans many different industries, including healthcare, aviation, and energy. However, in recent years, the company has faced numerous challenges, including declining revenue and a series of high-profile scandals. As a result, many are questioning what the future of GE looks like. In this article, we will take a closer look at what the future may hold for this iconic company.

The Challenges Facing GE

Before we can discuss the future of GE, we need to first examine the challenges that the company is facing. One of the biggest issues that GE has been dealing with is declining revenue. Despite being a huge company with a diverse portfolio of products, GE has seen its revenue decline in recent years. This has been due in large part to the poor performance of certain business units, such as GE Power, which has struggled in the wake of declining demand for fossil fuels.

Another challenge that GE has been facing is a series of scandals that have rocked the company. In 2017, for example, it was revealed that GE had been engaging in questionable accounting practices. This led to an investigation by the Securities and Exchange Commission (SEC), which ultimately resulted in a $200 million settlement. These scandals have damaged the company’s reputation and eroded the trust that many investors and customers had in the company.

Finally, GE has also been facing increased competition from a range of other companies. In the healthcare industry, for example, companies like Siemens and Philips have been growing rapidly, while in the aviation industry, Boeing and Airbus have been dominating the market. This means that GE needs to work harder than ever to stay competitive and maintain its market share.

The Road Ahead for GE

Despite these challenges, there are reasons to be optimistic about the future of GE. The company has begun taking steps to address some of the issues that it has been facing. For example, it has been divesting certain business units that have been underperforming. In 2018, for example, GE sold its healthcare IT business to Veritas Capital for $1.05 billion. This move allows GE to focus on its core businesses and potentially increase its revenue.

GE has also been investing heavily in new technologies and innovation. It has recently launched a number of new products that could help it stay competitive in the long term. For example, it has developed a new type of wind turbine that is more efficient than previous models, which could help it attract customers in the energy industry. It has also been working on developing new diagnostic tools for the healthcare industry.

Finally, GE is also taking steps to rebuild its reputation and restore trust among investors and customers. It has implemented new internal controls to prevent the type of accounting scandals that it faced in the past. It has also been working to improve its communication with shareholders to help them better understand its business and its plans for the future.

Conclusion

Although GE has faced numerous challenges in recent years, there are reasons to believe that the company can overcome them and thrive in the future. By divesting underperforming business units, investing in new technologies, and improving its internal controls and communication, GE can position itself as a leader in industries ranging from healthcare to energy. However, it will need to work hard to maintain its competitive edge and regain the trust of investors and customers alike. Only time will tell whether GE can succeed, but the future looks promising.