Haier Brings Goods Things to Life

Sunday, August 3, 2008 21:57
Posted in category The Big Picture
Comments Off on Haier Brings Goods Things to Life

As an American, I still remember changing the light bulb with the GE logo, we had GE appliances in the house, and going through B school I was lectured by my professors of GE as a company (structure, R&D, etc) and why it deserved to be #1.

Over time though, GE has changed in when Jeff Immelt took over the company, it because less about light bulbs and more about wind energy and capital. It is a process that Jack Welsh called him out on a few month back when earning expectations didn’t meet the street and the stock got hammered.

Recently, with GE’s move away from consumer products, the choice was made to restructure its consumer and industrial (bulbs, appliances, etc) on the market. Their low margins and high investment was dragging the new groups down.

But, what is one persons trash is another gold, and the Shanghai Daily article Haier looks to acquire GE’s ‘household name is pretty self explanatory, but in case it doesn’t this passage from the article sums it up pretty nicely:

GE Chief Executive Officer Jeffrey Immelt in May identified Haier and Korea’s LG Electronics Inc as potential suitors for its appliance unit, said Bloomberg News. A purchase of the century-old division would give Haier, which sells products through Wal-Mart Stores Inc, Best Buy Co and Home Depot Inc, a household name to help its United States expansion.

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