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Non-Tech : General Electric (GE)
GE 300.98+0.4%3:59 PM EST
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To: Arthur Tang who wrote (1862)4/17/2001 5:16:45 AM
From: Arthur Tang  Read Replies (2) of 3256
 
Revisit "planned obsolescence and replacement"?

Obsolescence is to rejuvenate a saturated market. Replacement, however, is customer retention(30% of the business)[major change of styling every three years]; through 1 to 1 marketing, customer service can sell both labor and material including new equipment.

IBM due to saturated main frame business, had to emphasize service. IBM service grew double digit for many recent years. Dell using IBM service and Wang service had grown substantially at the expense of Compaq.

Mr. Immelt had done the same thing at GE Medical. Sell and service MRUs. New generation MRUs are designed open rather than through a tunnel. They have not however gone into nuclear medicine yet. So, growth has yet to peak out.

As far as HON units goes; there are good opportunities with obsolescence and replacement theory so far not yet practiced, except for the semiconductor equipment field(12" wafer replacing 8"). Removing some of the top men(with mental blocks) will drive the new management to great heights. Is that Mr. Welch's strong points?

So, I see great future with Mr. Immelt at the helm. Mr. Welch had shied away from service at GE appliance. Notice the lack of TV repairmen, made the TV industry a throw away industry(very small without home theater installations now a days). Service employment is now over 30% of the labor market in America. Remember this is a 30%, 3 years, 30% relationship?
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