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  • January 2006 (Revised April 2007)
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General Electric Healthcare, 2006

By: Tarun Khanna and Elizabeth Raabe
  • Format:Print
  • | Pages:25
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Abstract

In January 2006, Joe Hogan, head of General Electric (GE) Healthcare Technologies, prepared to step into William Castell's shoes as CEO of GE Healthcare, the world's leading manufacturer of diagnostic imaging equipment. In 2004, former CEO Jeff Immelt acquired Amersham for $10 billion. The acquisition was part of Immelt's GE-wide move to reemphasize research and development. Hogan had run GE Healthcare's predecessor organization, GE Medical Systems (GEMS). A 20-year GE veteran, Hogan witnessed three distinct stages of the subsidiary's development as it evolved from the Global Product Co. (GPC) to the modified GPC and then to GE Healthcare. By 2005, the company had a 34% market share of the worldwide diagnostic imaging equipment business. GE executives designed the acquisitions to catalyze the firm's move from an engineering and physics-based diagnostic company to a life sciences-based health care solutions company that could better meet worldwide health care needs. Hogan wondered: What challenges did GEMS' previous quantum leaps portend for this new step-function change?

Keywords

Corporate Entrepreneurship; Cost vs Benefits; Growth and Development Strategy; Mergers and Acquisitions; Machinery and Machining; Global Range; Multinational Firms and Management; Product Design; Technological Innovation; Expansion; Value Creation; Business Subsidiaries; Health Industry; Medical Devices and Supplies Industry

Citation

Khanna, Tarun, and Elizabeth Raabe. "General Electric Healthcare, 2006." Harvard Business School Case 706-478, January 2006. (Revised April 2007.)
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About The Author

Tarun Khanna

Strategy
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Related Work

    • January 2006 (Revised April 2007)
    • Faculty Research

    General Electric Healthcare, 2006

    By: Tarun Khanna and Elizabeth Raabe
Related Work
  • General Electric Healthcare, 2006 By: Tarun Khanna and Elizabeth Raabe
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