Level Of Diversification Case Study: General Electric Company

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Background
General Electric, GE, is an American company based in Boston, Massachusetts established on April 15, 1982. It is known for its array of products that it avails to the public including aircraft engines, energy, electric motors, lighting, locomotives, weapons, oil, software, and finance. It is important to note that the company has made its stand and ventured into healthcare. In a nutshell, the company uses its innovation in technology to enhance its segments including health care. (GEHC, 2018). The company has involved itself in healthcare by providing a subsidiary that primarily focuses on impacting and improving health care around the world, such as producing new developments in health information technology.
Level of diversification As has been pointed out initially, GE has an array of products that are not related to each other in any way. This shows that the company has diverted its resources to satisfy different consumer needs. Looking at this company it shows that it has massively diversified and thus its level of diversification is high. The areas of diversification for the company are aviation, healthcare, finance, energy, weaponry and IT.
Nonetheless, the diversification of GE into these
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As a result of diversification, GE is able to have a wider scope of the market allowing the company to know its customer's taste and preferences. This information allows them the opportunity to advance and be further ahead of the competition. In addition to this, the diversification exposes the company to greater popularity thus being able to make mergers and joint ventures with other companies. Lastly, the threat that poses due to diversification is the possibility of destroying the company's main agenda. (Chesbrough, 2012). This comes as a result of over-diversification whereby it is difficult for the customers to realize what the company primarily deals with leading to customer

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