Chapter 8: Looking at International Strategies

As we all know by now, General Electric (GE) is a global company, and their international strategy is equal to none. GE has established itself in almost every emerging market in the world from Brazil and India to China.

Developing markets are vital to the growth of GE, and they must continue to explore these new markets in order to maintain their competitive advantage. An international strategy consists of how “a firm approaches its cross-border activities and those of competitors and plans to approach them in the future.” In the chapter, the book discusses the pros and cons of international expansion. Understanding the liabilities of newness and foreignness, cost associated with governance and coordination, offsetting costs and benefits, and global economies of scale and scope are all concepts that are vital for GE to be successful in their global expansion.

GE has developed a strategy called “Company to Country” to aid in establishing itself in foreign countries. Currently, GE has administered this strategy in every emerging market in the world from Latin America to Asia. This strategy is designed to localized capabilities and develop resources in these areas.


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