Biz: GE selling Consumer Durables Biz
May 16, 2008 by Praful H.B.K.
As news emerged the reasons for GE selling durables biz are pretty apparent and in line with there portfolio management strategy:
- Commodity biz with very little differentiation and low margins
- Facing a severe downturn with a negative growth in new-home sales
- Predominantly American market, without global synergies and leadership and Asian manufacturers being far more cost-effective
Only thing that GE may have to sort out is the brand issue, it’s been connected to these for all its years of existence. Would it go in for a IBM styled handover or some other way? It remains to be seen.
