Kanjsknks

General Electric’s Next Generation (GEnx) Engine

Sammy Doe

Embry-Riddle Aeronautical University Worldwide

MBAA 514

Dr. Sam Samuel

December 16, 2012

Abstract

General Electric is a world leader in innovation and technology with many different subsidiaries. One of its subsidiaries, GE Aviation, is leading the way in jet engine technology through fuel savings, reduced weight, carbon emissions, and noise. The federal government has put mandates on industry carbon emissions and noise levels at local airports. Through deregulation of the airlines in 1980, profit margins have tightened as many competing airlines have filed for bankruptcy, gone out of business, or merged with other airlines. The technology of tomorrow’s jet aircraft promises to bring increased fuel efficiency, and reduced costs to both the airline and the customer. GEnx engine orders are currently on backorder and are the fastest growing market of jet engines today. Since fuel is one of the largest expenses for the airlines, today’s commercial airlines are demanding more fuel savings to meet their bottom line. Today’s GEnx is meeting that challenge. This paper describes a notional marketing plan for the new GEnx.

Company Analysis

Background

When World War I began in 1917, the U.S. government looked for a company to add power to the piston driven aircraft engine. The government wanted a boost to the engine and General Electric (GE) answered that call by adding the turbo supercharger to the piston engine. This turbo used exhaust gases to turn the turbo which added power to the engine. Another company also developed their version of the turbo. The U.S government called for a test of the two companies at Pikes Peak, elevation 14,000 feet. By winning this test, it landed GE with their first government aviation contract, and was the beginning of GE becoming a world leader in jet aircraft products (GE Aviation, 2012).

From that time on, GE has produced some of the world’s largest...