The life story of Thomas Alva Edison is truly inspiring. Thomas was the little deaf boy who struggled all his way to the top. He was the first inventor of the electric light bulb. Today, he is well-known not only as an inventor but as a great businessman. Thomas also contributed to the communication industry.
Since Thomas had a great business interest; he built many companies and research laboratories. And, one of his biggest companies that are leading the world even today is General Electric. On 15th April 1892, five founders namely Thomas Edison, Elihu Thomson, Edwin Houston, Charles Coffin, and J. P. Morgan. Irving Langmuir and Ivar Giaever worked for the company in the 1900s.
Early History of General Electric
Thomas founded many electricity-related companies which include Edison Lamp Company, Edison Machine Works, Edison Electric Light Company, etc. J. P. Morgan and Vanderbilt family financially supported Edison Electric Light Company.
In 1889, Edison Electric Company merged with Drexel, Morgan & Co. (co-founded by J. P. Morgan) to form Edison General Electric Company. In the same year, the company merged with Thomson-Houston Electric Company and acquired Sprague Electric Railway and Motor Company. Then the company’s headquarters was Schenectady plant.
Beginning of a New Century
In 1911, General Electric expanded its lightning business. It acquired the National Electric Lamp Association and the headquarters of the lightning division were based on East Cleveland, Ohio.
In 1919, Owen established Radio Corporation of America through General Electric. The company also acquired Marconi Wireless Telegraph Company of America in the same year. Founding RCA helped General Electric to create a firm base on the grounds of communication and broadcasting.
In 1926, the establishment of the National Broadcasting Company took place due to a partnership with RCA. Later, General Electric was accused of antitrust violations and the company decided to spin out of the joint venture. In the next year, General Electric entered into television broadcast. Ernst Alexanderson made most of the contributions.
Expansion
The company also excelled in computing. In 1960, General Electric ranked eighth in the list of major computer companies. After a couple of years, the company started building its operating system (GCOS). Today, many companies use this OS.
Under the leadership of Sanford Alexander Moss, General Electric stepped into the aviation industry. In late 1900, the company started building turbosuperchargers. During World War I, the company introduced these and the sale rose rapidly. Production of round 3, 00,000 turbo superchargers took place for fighter and bomber engines.
The efficiency and powerful technology of General Electric caught the sight of the U.S. Army. Thus, the company received the order of building the nation’s first jet engine for U. S. Army Air Corps. After World War II, General Electric ranked ninth in U. S. for producing wartime machines.
General Electric’s success outsourced all its competitors including Rolls-Royce. Eventually, in the 1980s the company involved itself in the production of nuclear weapons. A part of the nation didn’t take it n a good way and started boycotting their products.
The new century indicated a part of new business for the company. It invested in wind power. In 2002, the company acquired Enron Wind and by the end of 2003 the company’s annual sales summed up to $1.2 billion. In 2009, General Electric acquired ScanWind.
Acquisitions since the 1980s
The dispute with RCA came to an end when it finally reacquired it for $6.28 billion in 1985. In 1986, the company acquired Kidder, Peabody & Co.
Francisco Partners and Norwest Venture Partners acquired a part of General Electric in 2002. After a couple of years, General Electric acquired the majority of Universal Pictures from Vivendi. The same year witnessed General Electric spinning off its life insurance division and established it as an independent company.
In 1997, General Electric established Genpact and sold 60% of its stake to General Atlantic and Oak Hill Capital Partners. The company acquired Smiths Aerospace for $4.8 billion in May 2007 which was followed by acquiring Vecto Gray for $1.9 million. In 2008, the Oil & Gas part of General Electric acquired Hydril Pressure & Control for $1.1 billion.
In March 2011, the company acquired Lineage Power Holdings and in April 2011 it acquired John Wood Plc’s Well Support Division for $2.8 billion. In June 2012, the company announced about investing $3 billion for expanding business in Karnataka, India.
After 2011, the market has fallen a bit for General Electric. The acquisition of a few subsidiaries of the company took place by huge multinational conglomerates.
Annasha Dey is an NIT student, who apart from studying engineering is also a content writer. She has a great interest in photography, writing, reading novels, and travelling as well. She is a foodie who loves socializing and hanging out with her friends. She is also a trained Kathak dancer and a big fashion enthusiast. Dey also loves watching TV series, which includes F.R.I.E.N.D.S. and Big Bang Theory. To be a better writer she prefers to read more