$ 50 billion pricing opportunity at GE!
I just read the current HBR in a bookstore near me - more specifically the interview of GE's Immelt on his new "organic growth" process. One statistic jumped out at me.. In GE's white goods appliances business, the pricing process was less than optimal. Apparently 5 BILLION dollars was simply given away discretionally by the sales force. Immelt himself believes that there's 50 BILLION dollars given away over all the GE businesses due to sub-optimal pricing processes. The question you need to ask yourself is -
If an incredibly well-run company like GE can find opportunities in improving pricing after 10+ years of Six Sigma, How much of an opportunity is there in your company??
If an incredibly well-run company like GE can find opportunities in improving pricing after 10+ years of Six Sigma, How much of an opportunity is there in your company??
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