Lots of buzz on my post questioning whether or not GE is innovative or not. I’m still not sure. I know it is inventive and does high tech work well, but does it have an innovative culture?
As for dumping GE appliances, I know it’s a low-margin business at the moment but it might become be a higher-margin business with some cool innovation (look at Whirlpool’s expensive front-load washers). And I know GE appliances sells mostly to US customers but with the burgeoning middle class in Asia and the Middle East, it could become a global player. That’s what happened to GE jet engines and locomotives.
The other side to the argument, made by Matt Vella, is that most young people see GE in terms of a media play. So dumping appliances is like getting rid of old 20th century stuff to favor more high tech (jet engines, etc.) and media.
What do you think?