Large companies take a long time to align with the new times
This is a historical fact, large companies are mammoth companies in which the great directors live in large offices away from the madding crowd. And as they have many people around and many invested interests, they usually take a long time to react to the changes that occur in their businesses.
Due to this slowness, most of them are falling down the slope and ceasing to be competitive. That happens to the majority and General Electric has been no exception.
This great company that one day (40 years ago) was at the forefront in various markets (power plants, aircraft engines, electrical appliances, etc…) was losing its creative impulse and living off its past glories. Until they almost went bankrupt, and had to sell many of their businesses to survive.
In my opinion, one of his mistakes was not seeing where the renewable energy winds were blowing in time, and although they created a wind power division, they were still very hooked on coal plants.
What had to happen has happened and today coal plants have no future and are a thing of the past. And now General Electric announces that it is leaving the coal-fired power plant business.
A too late announcement that barely saves face and makes the news. A brief piece of news in the middle of the newspaper, because that decision does not change anything neither the market nor its future business, which hardly exists in that field.
They still have many coal plants already built to maintain for the next few years, but it is a business that will slowly dwindle by itself.
For a company to grow, it must position itself in niches that are going to change the evolution of society, and that is what GE did a long time ago and that is why it grew. Then they began to live comfortably and gradually fell into their complacency, with the consequences already known.
I make this reflection today because I think it is a good example of the ups and downs of companies. And those responsible for these falls are not their workers but their managers, but those who pay the hardest consequences are usually the first.
Injustices of life.