Chapter MC, Problem 19.3DQ

Summary Introduction

Case summary:

Company GE is not a conventional company. It split itself becoming a diversified multidivisional structure under Company AT. Person LP is the CEO of Company AT while Person SB is the President. Company GE is known well for developing many of the products.

Company GE states that almost 50% of their product came from the 20% rule. In 2009, Company GE launched its own social networking service integrating all of its other services. Company GE began this social networking service to compete with Company FB.

To explain: Why Company GE has failed in developing other profitable businesses.