GE is one of the largest and most diversified industrial corporations in the world.
We have engaged in developing, manufacturing and marketing a wide variety of products
for the generation, transmission, distribution, control and utilization of electricity
since our incorporation in 1892. Over the years, we have developed or acquired
new technologies and services that have broadened considerably the scope of our
activities.
Our products include major appliances; lighting products; industrial automation
products; medical diagnostic imaging equipment; motors; electrical distribution
and control equipment; locomotives; power generation and delivery products;
nuclear power support services and fuel assemblies; commercial and military
aircraft jet engines; chemicals for treatment of water and process systems;
and engineered materials, such as plastics, silicones and, through the fourth
quarter of 2003, superabrasive industrial diamonds.
Our services include product services; electrical product supply houses; electrical
apparatus installation, engineering, repair and rebuilding services; and through
the third quarter of 2002, computer related information services. Through our
affiliate, the National Broadcasting Company, Inc., we deliver network television
services, operate television stations, and provide cable, Internet and multimedia
programming and distribution services. Through another affiliate, General Electric
Capital Services, Inc., we offer a broad array of financial and other services
including consumer financing, commercial and industrial financing, real estate
financing, asset management and leasing, mortgage services, consumer savings
and insurance services, and specialty insurance and reinsurance.
Operating businesses that are reported as segments include Aircraft Engines,
Commercial Finance, Consumer Finance, Consumer Products, Equipment Management,
Industrial Products and Systems, Insurance, Medical Systems, NBC, Plastics,
Power Systems, Specialty Materials and Transportation Systems.
The worldwide competition in aircraft jet engines and MRO (including parts
sales) is intense. Both U.S. and export markets are important. Product development
cycles are long and product quality and efficiency are critical to success.
Research and development expenditures, both customer-financed and internally
funded, are important in this segment. Focused intellectual property strategies
and protection of key aircraft engine design, manufacture, repair and product
upgrade technologies are also important.
We operate in a highly competitive environment and are subject to competition
from a variety of financial institutions including commercial banks, investment
banks, leasing companies, financing companies associated with manufacturers,
and independent finance companies. Industry participants compete on the basis
of interest rates and fees as well as deal structures and credit terms. Profitability
is affected not only by broad economic conditions that impact customer credit
quality and the availability and cost of capital, but also by successful management
of credit risk, operating risk and market risks such as interest rate and currency
exchange risk. Important factors to continued success include maintaining strong
risk management systems, customer and industry specific knowledge, diverse portfolios,
service and distribution channels, strong collateral and asset management knowledge,
deal structuring expertise and the reduction of costs through technology and
productivity.
In our opinion, we compete in the reinsurance marketplace principally on the
basis of our expertise, relationships, financial strength, price and creativity
in developing customized solutions to customer needs. Within the direct insurance
marketplace, we believe we compete principally on the basis of our product offerings,
established relationships with customers and key distribution partners, price
and ease of doing business.
Employers Reinsurance Corporation is one of the largest competitors in its
marketplace. Our property and casualty reinsurance operations are ranked fifth
in the world in terms of net premiums written and we compete with the worlds
largest reinsurers as well as dozens of smaller niche competitors. Our life
reinsurance operations are ranked in the top four life reinsurers in the world.
Medical Systems competes against a variety of U.S. and non-U.S. manufacturers
and services operations. Technological competence and innovation, excellence
in design, high product performance, quality of services and competitive pricing
are among the key factors affecting competition for these products and services.
The Plastics business environment is characterized by technological innovation
and heavy capital investment. Being competitive requires emphasis on efficient
manufacturing process implementation and significant resources devoted to market
and application development. Competitors include large, technology-driven suppliers
of the same, as well as other functionally equivalent, materials. The business
is highly cyclical and is extremely sensitive to variations in price and in
the availability of raw materials, such as cumene, benzene and methanol. Availability
of manufacturing capacity from the business or its competitors and anticipation
of new product or material performance requirements are key factors affecting
competition. Application development and associated technology assistance create
incremental market demand. In addition, product and manufacturing process patents
establish barriers to entry in many product lines.
Worldwide competition for power generation products and services is intense.
Demand for most power generation products and services is global and, as a result,
is sensitive to the economic and political environment of each country in which
the business participates, and to regional load growth requirements and demand
side management. In addition, internationally, the influence of available fuels
and related prices has a large impact on demand.
Our business environment is characterized by technological innovation and heavy
capital investment. Being competitive requires emphasis on efficient manufacturing
process implementation and significant resources devoted to market and application
development. Competitors include large, technology-driven suppliers of the same,
and other functionally equivalent materials.
8.28% 