GE Develops Eternal Light Bulb That Lasts Forever

Case Type: new product; industry analysis.
Consulting Firm: Marakon Associates 2nd round job interview.
Industry Coverage: Energy Industry; Utilities.

Case Interview Questions #00036: Your client is General Electric Company (NYSE: GE), a multinational conglomerate corporation headquartered in Fairfield, Connecticut, US. The company operates through four segments: Energy, Technology Infrastructure, Capital Finance and Consumer & Industrial. In 2011, Fortune magazine ranked GE the 6th GE eternal light bulb largest company in the U.S.

GE Energy’s Global Research Lab has developed a super-durable filament for light bulbs; with this filament, the light bulb will never burn out The lab is ready to license this new product and technology to a light bulb manufacturer. What will be the effect on the light bulb industry?

Additional Information: (to be given to you if asked)

The light bulb industry is dominated by two multinational producers. The two companies sell their products side by side for essentially the same price in similar outlets internationally. There are a several small local players in various regions of the world who produce local brands and some private store brand light bulbs. There have been no technological innovations in light bulbs for many years.

Possible Solution:

One outcome is that one of the two major players purchases the technology. If the technology is patented and

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