For many years, GE has been held as an exception to the two arguments: (1) corresponding to the diversification strategy outperform related diversification strategies, and 2) that the conglomerates no longer a viable form of organization in the era of outsourcing, focus and maximize shareholder value. While many former diversified firms become narrower and more focused on its corporate strategy, GE continues to buy and sell businesses, and operates an extremely complex set of businesses. This case serves as a means to study the strategic rationale for GE's corporate strategy and sophisticated diversification. The main arguments for and against the related diversification can be linked to the strategy GE. "Hide
by Andrew C. Inkpen Source: Thunderbird School of Global Management 15 pages. Publication Date: January 1, 2009. Prod. #: TB0007-PDF-ENG