How Ge Is Disrupting Itself

Topics: Developed country, Developing country, Emerging markets Pages: 2 (676 words) Published: November 7, 2012
How GE is disrupting itself?

Executive summary

Though having been launching products in emerging markets for few decades, GE’s leaders realized that it is vital to change their business model not only to reach their full potential growth but also for defensive reasons. Authors called the progress used to complete that task reverse innovation. Reverse innovation is all about decentralization and local market focus such as local based and managed market, which is believed to be able to make GE more successful in developing countries. However it is completely opposite to globalization that created unsolved conflicts between two strategies. In this article authors will reveal to us what GE did to overcome these conflicts.

In the realization that emerging markets are very different to markets in developed countries, they realized the necessity of adjusting the business model to adapt to the new environments, which may lead to two core assumptions: * Emerging economics will largely evolve in the same way that wealthy economics did. * Products that address developing countries, special needs can’t be sold in developed countries because they are not good enough to compete there. However research and analysis over India’s markets gave us the different results. It is reported that emerging market could develop even greater than in developed countries because of their great willingness to adopt new innovations. And on the contrary products that have been launched in emerging market could possibly create new markets in developed world.

For deeper understanding, the conflict is not only about the strategy which make globalization successful might make reserve innovation impossible and in return. It also lies at the executives who are not familiar to the new markets. Being aware of the difficulty company has to face when changing long established structures and attitudes, however for the sake of opportunity of future growth, GE came out with new business...
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