‘Ecomagination’
Is it just new trend or gold mine? Original Article
The word, 'Ecomagination' is a combined word with 'Eco' from 'Ecology' and 'Imagenation' from GE's slogan 'Imagination at work'. This is GE's new strategy to solve environmental problem that their customers are facing. Once GE repositioned themselves as a Eco Corporation, Siemens and BP anounced themselves as a Eco Corporation as well. Is Eco business simply new trend that won't be long? Or is it gold mine for the world biggest company?
As a matter of fact, we are not considering environmental business as a profitable model in Korea. Watch movie like; 'Uncomfortable Truth', we all agree that environment is so important. However, when it become personal, we have certain tendency that we don't want to spend any
money for environment but abuse it. In the mean time, there is some movement that is pro-environment in outside of Korea. Some of multi-national company like GE, BP, Siemens announce that they will invest huge amount money for environment. It usually takes a lot of money and time and hard to get compensation for it. Can they find the sustainable future business model from Eco?Profitability
Jeffrey Immelt, chief executive officer in GE argue that Eco business will bring big return for GE in the board meeting. However, except 5~6, rest of board members rejected his idea. They turned down arguing that it cost too much and it could be threatened by GE’s many ‘Superfund sites’ and “other environmental issues” that would be very difficult to fix.
However, if we look at the number, as a name of ‘Ecomagination’, GE makes tens of billion dollar every year. Hybrid locomotive, LED, Home Builder Program are typical ‘Ecomagination’ product. Net sales of ‘Ecomagination’ boost from $1o billion in 2006 to $14 billion in 2008. They are expecting ‘Ecomagination’ business to be around $20 billion amount business in 2010.
My analysis and suggestion
No doubt that the eco business is becoming new gold mine and I believe it will remind of gold rush again. However, in some sense, I consider it’s a bit overestimated the intrinsic potential of eco business. To minimize the risk and repeat the 1849’s gold rush, eco company should not only have a technical superior but also constantly ask international organizations and states to strengthen regulation on environment so more of their product be used under the law.
*Reference
Business Week
Chosun Newspaper
http://www.seri.org/
http://www.ge.com/
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