GE Essay Example | Topics and Well Written Essays - 1000 words

GE - Essay Example Diversification and market penetration are two strategies that have always played an important role in bringing growth in the business activities of an organization. Same is the case with General Electrics. By entering new markets and providing services designed around strategic problems faced by communities and market sectors, GE has expanded both effectively and efficiently. For any organization capturing emerging markets that have growing economies is an important business decision, which when taken at the right time, usually results in major benefits for organization. In 2003, Goldman Sachs economist, Jim O’Neill highlighted the growth in the economies of the four countries, namely, Brazil, Russia, India and China and predicted that the rapidly progressing economies of these countries will make them the world leaders by 2050. His report helped investing organizations, researchers and academics put more focus on these four countries in the future and shed light on the prospective prosperity that lay in investing in these rapidly growing countries. Currently, General electric is doing business in all four of the BRIC countries, but plans to increase its market share in these countries. The predictions that O’Neill made are dependent on a number of external issues that may eventually decide whether all of these four countries will make the progress that is thought that they will make or not. Similiarly, GE’s investment decisions in these countries will also be based upon the various risks and benefits that are associated with each country. China, being the third largest country in the world area wise and having the largest population on earth is slated to overtake all the G7 countries including America and become the world’s biggest economy by the year 2045. Experts have argued that the real ‘muscle’ in the BRIC name is due to China. With the economic and financial growth that china has experienced in the past decades, its increased