How GE Is Disrupting Itself†

For decades, GE has sold modified Western products to emerging markets. Now, to preempt the emerging giants, it’s trying the reverse.

Harvard Business Review, October 1, 2009 — In May 2009, General Electric announced that over the next six years it would spend $3 billion to create at least 100 health-care innovations that would substantially lower costs, increase access, and improve quality. Two products it highlighted at the time—a $1,000 handheld electrocardiogram device and a portable, PC-based ultrasound machine that sells for as little as $15,000—are revolutionary, and not just because of their small size and low price. They’re also extraordinary because they originally were developed for markets in emerging economies (the ECG device for rural India and the ultrasound machine for rural China) and are now being sold in the United States, where they’re pioneering new uses for such machines.

We call the process used... continue reading

H-P Plans to Fuse Printer, PC Units†

Move Would Mark Reversal of Fortune as Once-Laggard PC Division Now Is the Company's Rising Star

Wall Street Journal, September 30, 2009 — Hewlett-Packard Co. Chief Executive Mark Hurd, in what would be one of his biggest moves yet to overhaul H-P's inner workings, is finalizing a plan to combine H-P's printer and personal-computer businesses into one unit under current PC chief Todd Bradley, said people familiar with the situation.

Can Amazon Be Wal-Mart of the Web?

Amazon is expected to soon sell more general merchandise than media products like books and DVDs.

New York Times, September 20, 2009 — THE hum of 102 rooftop air conditioners and a chorus of beeping electric carts provide the acoustic backdrop in Amazon.com’s 605,000-square-foot distribution facility on this city’s west side. But the center’s employees can almost always hear Terry Jones.

On a recent summer afternoon, Mr. Jones, an “inbound support associate” making $12 an hour, steered a hand-pushed cart through the packed aisles and shouted his location to everyone in earshot: “Cart coming through. Yup! Watch yourself, please!” Mr. Jones explained that he was just making his time at Amazon “joyful and fun” while complying with the company’s rigorous safety rules.

But his cries might double as a warning to the retail world: Amazon, the Web’s largest retailer,... continue reading

Beware Social Media Marketing Myths

MySpace, Twitter, and Facebook are all the rage, but for most business owners there are better ways to stay close to customers

BusinessWeek, May 26, 2009 — Comedian Jim Gaffigan has a suggestion for preparing a Hot Pockets frozen entrée: "Take out of package. Place directly in toilet." Gaffigan is not a big fan of Hot Pockets. He doesn't like exercise, either. But he loves bacon. "Without bacon, no one would even know what a water chestnut is," he says. Gaffigan's also a fan of social networking sites.

You'll see him on Facebook, Twitter, and News Corp.'s (NWS) MySpace. He keeps fans up to date on his concerts, albums, TV appearances—and naps. In short, he's a social networking success story. For a one-man band like Gaffigan, who probably has a decent amount of free time between eating bacon and being on stage, social networks and blogs have proved effective vehicles for marketing his business and... continue reading

Jamie Dimon's swat team

How J.P. Morgan's CEO and his crew are helping the big bank beat the credit crunch

FORTUNE, September 2, 2008 — It was the second week of October 2006. William King, then J.P. Morgan's chief of securitized products, was vacationing in Rwanda, visiting remote coffee plantations he was helping to finance. One evening CEO Jamie Dimon tracked him down to fire a red alert. "Billy, I really want you to watch out for subprime!" Dimon's voice crackled over King's hotel phone. "We need to sell a lot of our positions. I've seen it before. This stuff could go up in smoke!"

A classic Dimon manic moment, the call is significant for two reasons. First, it marked the beginning of a remarkable strategic shift that helped J.P. Morgan, virtually alone among the big diversified banks, sidestep the worst of a historic credit crisis. Second, it sheds light on Dimon's distinctive... continue reading

Why GE Is Getting Out of the Kitchen

Stoves, refrigerators, and other appliances used to be the core of General Electric's business. But now the hot growth is elsewhere

BusinessWeek, May 16, 2008 — By jettisoning one of its most iconic units, General Electric (GE) would join a small but high-profile club of companies that famously parted ways with businesses once synonymous with their brand names. Companies such as IBM (IBM) and Eastman Kodak (EK) have also—either because of financial straits or tactical maneuvering—transformed themselves by letting go of ventures that once defined them.

Google and Salesforce Join to Fight Microsoft

New York Times, April 14, 2008 — Google and Salesforce.com, two of Microsoft’s most conspicuous rivals, are expanding a 10-month-old collaboration in an effort to accelerate their sales of customer management and office software to businesses.

On Monday, the two companies will announce that they have integrated Salesforce’s customer relationship management software and Google’s suite of office productivity applications, which includes e-mail, word processing and spreadsheets programs, into a single software package.

All Systems Go

How General Electric's jet-engine division in Ohio is boosting the company's business in China. A case study in advanced global strategy

Fast Company, April 11, 2008 — More than a billion people were watching late last year when the first commercial airliner ever built by a Chinese firm rolled off the assembly line in Shanghai. China's state network, CCTV, broadcast it live, a proud symbol of the country's rising technical prowess. Yet if you looked closely, there was another peacock preening. Of the 19 suppliers that collaborated on the 90-passenger regional jet, only one had its logo on the plane: General Electric, which built the engine. No surprise, perhaps, that GE subsidiary CNBC was the only foreign network permitted to cover the event.

There is no company on the globe that's better at leveraging the multiple parts of its business to feed growth than GE.

Searching for the next Dubai

An inside look at how a huge Middle Eastern company wants to remake the developing world in its hometown's image.

FORTUNE, March 1, 2008 — It's always tough driving in the wilds of East Africa. But in the tiny country of Djibouti, our driver explains, it's tougher than usual. "Djiboutian goats don't scare," he says, holding down the horn and swerving. We're driving 100 mph the wrong way down a winding road through terrain so apocalyptic that British soldiers, back when they ruled the world, nicknamed this parched earth the Furthest Shag of the Never-Never Land.

Sultan Ahmed bin Sulayem, a slight man of 53 with rugged features and a serious face, rides shotgun. He is the founder and chairman of Dubai World, a holding company that, he says, has $100 billion in assets, including one of the world's largest port operators, a mammoth private equity house, retailer Barneys New York, and the... continue reading

The Pepsi challenge

Can this snack and soda giant go healthy? CEO Indra Nooyi says yes, but cola wars and corn prices will test her leadership.

FORTUNE, March 1, 2008 — Pepsi can have a strange effect on people. The company, that is, not the beverage. No sooner had PepsiCo president Indra Nooyi gotten word 18 months ago that she was to become the next CEO than she hopped on a plane to Cape Cod, where Mike White, her main challenger for the job, was vacationing. The two had worked together for years. Both had been CFOs and rising stars. Both loved music. When they'd been kicked out of a board meeting the previous month while their fates were being discussed, they went to the Jersey Boys musical on Broadway and sang along to all the Frankie Valli songs.

As Nooyi's plane landed on Cape Cod, there was White waiting for her at the airport with a card he'd written to congratulate her. They took a long walk on the beach. Back... continue reading