GE is still highly ADAPTABLE... the NBC/ Universal story.

In my book, "The Secret to GE's Success", I emphasize that one of the five reasons that GE has been able to grow and prosper over its 127 years is that it has been adaptable. I emphasize that "nothing and no one is sacred". This was clearly demonstrated when GE sold its Plastics business, which was the home of Welch and Immelt.

In the Financial Times, January 21, 2008 edition there is another illustration of the company's adaptable strategies. This focuses on the "turnaround" of NBC Universal. Jeff Zucker, CEO of NBC Universal, describes how the company is taking advantage of the writers strike to "end long-term production contracts worth millions of dollars and is planning to go further by cutting the pilot season." He points out that NBC Universal has become "cable network" and the cable operations "now contributes more than half the earnings". The company is moving to acquire more "non-US" cable operations.

Adapting to reality has been a major strength of GE, but it also confuses the investor and other key stakeholders and re-enforces the view that the company is just another conglomerate and is in the buying and selling of assets business.

My personal belief is that the NBC Universal business needs to be continually reviewed and that it still isn't certain whether it has been really turnaround ed. Further there appears to be a highly political issue, since many believe that the organization is too liberal and therefore putting itself in the Presidential election spot light, which could negatively impact GE as a whole.

So far, it is difficult to see what NBC/Universal's real competitive advantage is. Clearly, it has not been able to develop highly creative shows and its cable programming is nothing unique.

Your comments are welcome.