General Electric is a supplier of many products and services to both the consumer and businesses, but as much as advertising as one might see in the various forms of media we see every day, consumer sales only account for less than a third of the company’s profits. What is the difference? It could be summed up in one quote:
“Whereas it might be disappointing when a refrigerator buyer chooses a competing brand, losing a single sale to a large business customer can mean the loss of hundreds of millions of dollars in business.”(Pg. 39, Marketing an Introduction, Armstrong and Kolter )
The company known that started out bringing light to almost every household in the world has opened itself to bigger markets, from entertainment to creating companies such as Boeing the means to transport both people and cargo from point A to point B. While a decision to buy a refrigerator might way on how big it is or how much food it might hold, or even the look or style, companies that buy GE made engines might have to look at things like environmental impact, fuel consumption, reliability, and serviceability. While a buying a GE made microwave, dishwasher, washer and dryer, and refrigerator might seem like a lot of money for us to spend, contracts for Boeing to buy 20 engines to fit on 5 747’s would be worth more money than we could even imagine having.
Why does GE do really well in its business sales? It’s because GE develops a working relationship with its customers. While there are many consumer products that might fall in to our needs, GE works with the business customer to make sure their products will fit their special needs, like working around international economics and politics in its deal with Kazakhstan National Railway to supply them with 310 Evolution Locomotives. In working with it customers, in both the business and consumer arenas, it’s no wonder GE has become a household name all over the world.
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