GE Lighting has announced to retreat from Latin American and Asian markets, a decision similar to restructurings made by other global top brands of the lighting industry in this year. Fierce competition particularly by price-efficient Chinese manufactures, has left GE with limited revenue on emerging markets.  GE’s decision follows similar moves of Osram, Philips, Toshiba and Samsung with the target to focus on specialized future technologies and increased profitability instead of a too broad sales and distribution approach. 

 

                                          

At the same time GE has announced to focus on its US market where an “incubation lab” will be established which focuses on the development of connected home technologies. The latter decision can also be seen as a means to protect GE’s position on its home market. As in the case of Philips and Osram these moves are clearly directed to the increase of profit margins which is most likely to be achieved in developed markets. 

With its new lab, GE has clearly given the starting shot to the development of new smart technologies and specialty lighting, a product range which already in the past belonged to the company’s expertise. GE’s stronghold market North America seems to be an appropriate place for the profitable market placement of these technologies.sm