GE and China... a love affair
Recently, Immelt bragged that GE's Chinese revenues would hit ten billion in 2010.
Ten billion dollars in GE revenues equals about 6% of total company revenues. This is good, but it is still less than the Appliance business that Immelt and his team are disposing. There is no question China is a growth opportunity, but I would like to know how profitable this business is. Based on my experience the Chinese are good negotiators and never leave money on the table.
In addition, it would be interesting to know how much know how and technological strengths GE is giving to China, either willingly or unwillingly, to get this business.
Bill Rothschild, author of GEWatcher blog (www.strategyleader.com) and The Secret to GE’s Success.
Ten billion dollars in GE revenues equals about 6% of total company revenues. This is good, but it is still less than the Appliance business that Immelt and his team are disposing. There is no question China is a growth opportunity, but I would like to know how profitable this business is. Based on my experience the Chinese are good negotiators and never leave money on the table.
In addition, it would be interesting to know how much know how and technological strengths GE is giving to China, either willingly or unwillingly, to get this business.
Bill Rothschild, author of GEWatcher blog (www.strategyleader.com) and The Secret to GE’s Success.
posted by TheStrategist @ 6:53 AM
1 Comments:
At August 19, 2008 5:35 PM ,
blabrmouth said...
Bill,
You make a fantastic point about the appliance business. You have China, India, and Russia all moving their citizens right into the cross hairs of this division.
In a world where 2.5 billion people will be able to afford a washing machine instead of beating their clothes on rocks, and GE dumps the appliance unit.
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