Question

In light of the economic crisis of 2009, explain how companies such as General Electric (GE) are trying to gain market share and increase profit margins.

a. Diversifying product lines and expanding into emerging markets
b. Implementing cost-cutting measures and downsizing
c. Increasing marketing efforts and promotional activities
d. Collaborating with competitors to share resources and reduce competition.

Answer 1

General Electric implemented various strategies like diversifying product lines, cost-cutting, marketing efforts, and collaboration with competitors to gain market share and increase profit margins.

Step-by-step explanation:

In light of the economic crisis of 2009, companies like General Electric (GE) implemented several strategies to gain market share and increase profit margins. These strategies include:

1. Diversifying product lines and expanding into emerging markets: GE expanded its product offerings to cater to a wider range of customers and entered new markets with high growth potential.
2. Implementing cost-cutting measures and downsizing: GE reduced expenses by implementing cost-cutting measures such as reducing workforce and streamlining operations.
3. Increasing marketing efforts and promotional activities: GE invested in marketing and promotion to increase brand awareness and attract more customers.
4. Collaborating with competitors to share resources and reduce competition: GE formed strategic partnerships and collaborations with competitors to share resources, reduce costs, and gain a competitive advantage.