Wiktor Wise
General Electric Company (GE) was founded in 1892 through the merger of Edison General Electric Company and Thomson-Houston Electric Company. Over the years, GE has diversified into multiple divisions, including aerospace, transportation, energy, healthcare, and lighting. In 2023, GE announced plans to split into three independent publicly traded companies: GE Aerospace, GE HealthCare, and GE Vernova. This strategic shift marked a rebranding for GE, as it transitioned from a conglomerate structure to focus on healthcare, energy, and aviation.
| Characteristics | Values |
|---|---|
| Year of rebranding | 1892 |
| Reason for rebranding | Merger of Edison General Electric Company and Thomson-Houston Electric Company |
| New company name | General Electric Company (GE) |
| Current status | Broken up into three separate public companies: GE Aerospace, GE HealthCare, and GE Vernova |
| Year of breakup | 2023-2024 |
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What You'll Learn
General Electric's history
The history of General Electric (GE) began in 1876 when Thomas Edison, at 28 years old, opened a laboratory and machine shop in a single two-story building in Menlo Park, New Jersey. This facility is considered the world's first R&D facility.
In 1886, the German-Jewish immigrant Gustav Binswanger founded an electrical goods wholesaler in London, which was later renamed The General Electric Apparatus Company (G. Binswanger) when Hugo Hirst joined the company. In 1889, the business was incorporated as a private company known as the General Electric Company Ltd. The company expanded rapidly, opening new branches and factories and trading in a wide range of electrical goods.
In 1892, General Electric Company (GE) was formed through the merger of Edison General Electric Company, founded by Edison in 1878, and Thomson-Houston Electric Company, with the support of Drexel, Morgan & Co. The company was incorporated in 1892, with the Schenectady plant serving as its headquarters for many years. GE Canada was also formed around this time. Following its establishment, GE expanded into various sectors and industries, including aviation, energy, healthcare, lighting, locomotives, appliances, and finance.
Over the next century, GE continued to grow and diversify its business. In 1989, GE combined its European business interests in appliances, medical systems, electrical distribution, and power systems with the British corporation General Electric Company. In 1986, GE acquired RCA and, subsequently, NBC's parent company NBCUniversal in 2011.
However, in the 2010s, GE faced financial setbacks, which led to the sale of significant portions of its holdings, including media, financial services, and consumer products. During the COVID-19 pandemic, the company's revenue was significantly impacted due to restrictions on air travel. As a result, in 2023-2024, GE was broken up into three separate public companies: GE Aerospace, GE HealthCare, and the energy company GE Vernova. Despite these changes, GE continues to be a leader in various industries, including energy, aviation, and healthcare, building on its over 130 years of experience and innovation.
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GE's business components
General Electric Company (GE) was founded in 1892 through the merger of Edison General Electric Company and Thomson-Houston Electric Company. Over the years, GE has had multiple divisions, including aerospace, transportation, energy, healthcare, lighting, locomotives, appliances, and finance.
During the COVID-19 pandemic, travel restrictions caused a significant drop in GE's revenue. In response, the company began selling off various divisions and assets to focus more on aviation. As a result of this strategic shift, GE's business components today centre on three main areas:
Energy Solutions
GE Vernova, formed in 2024, is a global energy company that includes Power, Wind, and Electrification businesses. It is supported by its accelerator businesses: Advanced Research, Consulting Services, and Financial Services. GE Vernova aims to lead the energy transition by electrifying the world while also working to decarbonize it. The company has over 80,000 employees across more than 100 countries and is headquartered in Cambridge, Massachusetts.
Jet Engines
GE has a strong presence in the aviation industry, with over 44,000 commercial and 26,000 military aircraft engines. The company's jet engines are used in commercial, business, and military aviation.
Healthcare Technologies
GE Healthcare is a leading global medical technology company, providing pharmaceutical diagnostics, imaging, ultrasound, patient care solutions, and data analytics. With over 50,000 employees, the company is dedicated to simplifying the patient journey and advancing personalized, connected, and compassionate care.
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The company's innovations
General Electric Company (GE) was founded in 1892 through the merger of the Edison General Electric Company and Thomson-Houston Electric Company. Over the years, GE has undergone several transformations, and its innovations have spanned a diverse range of technological and industrial fields.
GE has been a pioneer in various sectors, including energy, aviation, healthcare, lighting, transportation, and finance. Here are some key areas of their innovations:
Energy Solutions: GE has made significant contributions to the energy industry, particularly in hydroelectric power, gas power, wind power, and energy grids. They offer a wide range of products and services, including digital hydro plants, large hydro turbines, gas and steam turbines, generators, and various grid equipment. GE is also committed to driving a global energy transition, focusing on clean energy technology and decarbonization. GE Vernova, a global energy company within GE, aims to electrify the world while reducing carbon emissions.
Aviation: In the aviation industry, GE is known for its turboprop engines, jet engines, and systems for commercial, business, and military aviation. They have a strong presence in the aerospace sector, with over 44,000 commercial and 26,000 military aircraft engines.
Healthcare Technologies: GE has been innovative in healthcare, aiming to create a world where healthcare has no limits. Their work in this field includes medical systems, consumer products, and research.
Transportation: GE has had a hand in diesel locomotives, water treatment systems, and energy delivery systems such as power grids.
Lighting: GE has a history of producing electrical industrial and consumer goods, including incandescent lamps.
Finance: GE Capital, the financial arm of GE, facilitated the sale of GE consumer products and was once the seventh-largest bank holding company in the U.S.
GE has a long history of innovation, and its impact can be seen across multiple industries. The company has adapted and evolved over time, showcasing its ability to reinvent itself while contributing significantly to technological advancements worldwide.
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GE's ranking and performance
General Electric Company (GE) was founded in 1892 through a series of mergers between Thomas Alva Edison's companies and Thomson-Houston Electric Company. Over the years, GE has diversified into multiple divisions, including aerospace, transportation, energy, healthcare, lighting, locomotives, appliances, and finance.
GE has historically been associated with stack ranking, a widespread people management policy popularized by its former chairman and CEO, Jack Welch. However, in recent years, GE has recognized the limitations of this system and has transitioned to a more modern approach. This shift involves abandoning annual performance reviews and implementing more frequent feedback through a mobile app called PD@GE. The app enables managers to have regular conversations, or "touchpoints," with employees to discuss their progress and goals.
GE's performance and ranking have fluctuated over the years. In 2011, GE ranked 14th among the Fortune 20 as the most profitable company. However, the company later underperformed the market, with its profitability collapsing by about 75%. In 2020, GE ranked 33rd among the Fortune 500 as the largest firm in the United States by gross revenue. By 2023, the company's ranking had dropped to 64th in the Forbes Global 2000.
Despite these fluctuations, GE has demonstrated its ability to adapt and reinvent itself. After facing financial setbacks in the 2010s, GE sold off significant portions of its holdings and transitioned from a conglomerate-centric model. Today, GE focuses primarily on three business components: energy solutions, jet engines, and healthcare technologies.
GE's performance and ranking are also reflected in its impact on the world. The company has a long history of innovation, with products and services spanning various technological and industrial fields. GE has made significant contributions to hydroelectric power, gas power, energy grids, wind power, aviation, and the Industrial Internet of Things (IoT). Additionally, GE has engaged in financial services, investing in energy infrastructure projects globally.
In summary, GE's ranking and performance have evolved over time, with the company adapting to changing market conditions and employee management approaches. While facing challenges and setbacks, GE has maintained its position as a significant player in its key business areas, continuously striving to innovate and remain competitive in the global market.
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The rebranding
The General Electric Company (GE) was founded in 1892 through a series of mergers between various companies owned by Thomas Edison and the Thomson-Houston Electric Company. For over a century, GE was one of the largest and most diversified corporations in the world, with interests spanning multiple sectors and industries.
In 2023, GE ceased to exist as a conglomerate after it was broken up into three separate publicly traded companies: GE Aerospace, GE HealthCare, and GE Vernova. This strategic pivot reinforced the company's status as an emblem of perpetual innovation and reinvention.
GE Aerospace is a global leader in propulsion, services, and systems for commercial and military aircraft, with over 44,000 commercial and 26,000 military aircraft engines. GE HealthCare, distinguished by its "compassion purple" colour, leverages over 100 years of innovation to improve patient outcomes and address critical challenges in healthcare. GE Vernova, meanwhile, builds on 130 years of experience to lead the energy transition, helping to electrify and decarbonize the world while powering economies and delivering vital electricity.
Despite the separation into three independent businesses, all three companies retain the iconic GE name and the famous round logo, which dates back to the time of Thomas Edison.
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Frequently asked questions
General Electric was incorporated as The General Electric Company in 1892 and has been known as GE since 1896.
General Electric was formed through the merger of Edison General Electric Company, founded by Thomas Edison in 1878, and Thomson-Houston Electric Company in 1892. Edison remained associated with the company through his patents and consulting duties.
GE's logo is a famous round design that spells out the company's initials and dates back to the time of Thomas Edison.
GE focuses on three main business components: energy solutions, jet engines, and healthcare technologies.
