Ecomagination: Driving Sustainable Growth for GE

            
 
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Case Details:

Case Code : BSTR387
Case Length : 20 Pages
Period : 2005-2010
Pub Date : 2011
Teaching Note : Available
Organization : General Electric Company
Industry : Diversified
Countries : Global

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.



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"GE should be commended for a bold approach to climate issues. However, the company has a long way to go before it can legitimately claim to be an environmentally progressive company."1

- Jeff Jones, Communications Director, Environmental Advocates of New York2, in 2009.

Green Can Be Green!

On June 24, 2009, US-based technology giant General Electric Company (GE), surpassed its target of investing US$5 billion in research and development in its environmental initiative, Ecomagination. GE had earlier set 2010 as the target for achieving this goal but reached it a year ahead of schedule.3 The company planned to invest an additional US$10 billion in R&D by 2015. It was also on its way to achieving the US$20 billion mark in revenues from Ecomagination products, having generated US$18 billion in 2009, an increase of 6%. GE expected the Ecomagination revenue to grow at twice the rate of the total company revenue by 2015, which would give Ecomagination an even larger share of the total company sales.

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1] Caylena Cahill, "Problems in Green Marketing," www.fuse.ithaca.edu, December 2009.
2] Environmental Advocates of New York is a watchdog group on environmental issues affecting New York.
3] "GE Surpassed $5 Billion in Research & Development Investment in Ecomagination Technology," www.genewscenter.com, June 24, 2010.


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