GE's new eco-magic business strategy is unexpected


Energy price hikes are eroding only a small amount of profits for companies. The government is constantly threatening to impose punitive charges on excess emissions. Pollution has led to protests from environmentalists. Consumers and investors have called to ask for bad reports in the newspapers. Is it true... For many transportation companies, power plants, machinery manufacturers and even retail companies, environmental protection is an endless stream, and it is necessary to pay the price in exchange for breathing time.

One of the hidden reasons for making environmental protection a zero-sum game is that the technologies used in those infrastructures and services are not yet able to make changes to the environment. It is more difficult for basic technology to make changes to the environment than to reduce lighting or increase air conditioning. Changing them requires a longer wait and higher risks.

GE is the most important inventor of the fossil fuel era, with countless epoch-making technological innovations such as electric lights, electric locomotives, jet engines, and nuclear power plants. Therefore, on May 9, 2005, GE CEO Jeff Immelt suddenly announced a new business strategy called “Ethnomagination” to promote the company's performance and environmental benefits with more environmentally friendly products. After the initial mistakes, the media began to struggle to figure out what astronomical figures would be to reduce greenhouse gas emissions through its vast product lineup.

Turn around and think

GE's "ecological imagination" strategy is so surprising because the title of "the world's largest energy equipment giant" has not only brought glory to it. Its products are widely used in basic industries such as energy, electricity, water resources, transportation, etc., while people enjoy the convenience brought by electricity and engines, but also feel uneasy about the greenhouse gases they produce. Major customers such as power companies and airlines are under tremendous pressure to improve energy efficiency and reduce emissions. These enormous pressures are also passed on to GE.

To make matters worse, GE's own history of environmental issues is not very glorious. The famous PCBs incident was once reported in the US media: A few decades ago, GE used PCBs in two factories upstream of the Hudson River in New York and placed them in the Hudson River. After realizing that it is harmful to human health and the environment, the law prohibits this practice, but how to deal with PCBs discharged into the river has caused widespread controversy. The US Environmental Protection Agency requires GE to dredge the river. From 1976 to the present, GE has It cost hundreds of millions of dollars for this, but it still does not make up for the damage caused to the company’s image and the tension with environmentalists.

In this context, it is not difficult to understand people's surprise that GE is turning green. One of the biggest "targets" of environmentalists has suddenly become a comrade in the trenches. Such a change will inevitably lead to speculation: Is GE in order to Catering to the trend of public opinion, "driving green" yourself?

It’s not only those critics who have a good gun in the article, but GE’s internal views on the “ecological imagination” strategy. Since Immelt took office in 2001, GE’s attitude toward environmental issues has gradually changed subtly, but even so, when Immelt proposed the concept of “ecological imagination” in 2004, it still surprised the top management. Replacing energy-saving bulbs is a matter of cutting energy costs, and making money by producing green products is another matter.

He assigned tasks to senior officials, set up research and development, marketing, public relations and other groups to conduct research, and to analyze the views of the government, experts, scholars, customers and other relevant parties to determine what goals can be achieved, and how to do it. .

The results of the bottoming are not optimistic: Toyota's hybrid car is still seeking government subsidies, and GM's hydrogen fuel vehicles are far from real commercial. The big companies' warnings are warning green technology in the short term. Business risk. R&D investment is so huge, can it make a profit? In the case of growing business, can the goal of reducing total emissions be achieved? The public relations department is worried about the feasibility of disclosing the relevant information to the public every year. Will it once again provoke people's controversy over GE's environmental history issues and make it happen?

These question marks were discussed in GE for a whole year. Among the many obstacles and doubts, the most determined support voice came from Immelt. He realized that, like GE, many of the company's customers are also under the same pressure of public opinion, worried about the further deterioration of the future environment.

In the years to come, the world will face global and resource- and environmentally thorny issues that customers cannot solve on their own, and people are eager to find solutions before the costs become unbearable. In an era when this “big” is often seen as a negative factor, GE plans to make “big” a positive impact. Meet the urgent needs of the future by actively investing in “Tomorrow's Technology” such as desalination and filtration technologies, clean energy technologies and high-efficiency engines.

He believes that changing green is not only a responsibility that GE must bear, but also a business opportunity that must be seized.

Treating green as a responsibility binds the company's vision, and seeing green as a business opportunity can bring a broader imagination and creativity. In a comparative trial of GE's own greenhouse gas emissions and the use of GE products to help customers reduce greenhouse gas emissions, it was found that only one wind turbine generator product, its installed base reduced greenhouse gas emissions by almost equivalent. Total greenhouse gas emissions from GE's global companies.

Turning dreams into the market is the masterpiece of GE founder Thomas Edison. By constantly bringing "good things to humans," he became the most successful businessman of his time. Immelt convinced GE to go up and down, and the ecomagination project tells a story that is so familiar: GE's fate will depend on its ability to create new technologies that change people's work and lifestyles and create a better one. The future – for example, economic growth can be completely divorced from the growth of greenhouse gas emissions.

This is not Immelt's ideal, but a big business that will help GE earn $20 billion in 2010.
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