Communications Failure at GE's Ecomagination
General Electric's Ecomagination program, the company's clean tech division, has been a major success with increasing revenues and a long list of orders. GE builds much of the devices, equipment and infrastructure necessary to install, generate and distribute renewable energy around the world. It's been resoundingly applauded and rightfully so. Unfortunately, that hasn't done anything to help GE's stock which currently trades in the sub-$30 area, not a great place for the one-time bellweather. So, why isn't the success of Ecomagination translating to gains in the stock's price? Dow Jones & Company believe it's due, in part, to bad public relations. From their subscriber newsletter Tommorow's News Today:
Ecomagination also suffers from the perception that, however fast growing, it’s mainly a “green” marketing slogan around products that GE would be selling anyway.
That's unfortunate because the success of the program is directly attributable to GE's committment to serve the clean tech industry. They've been an early, effective and visionary leader in the renewable enrgy sector. It seems that the Ecomagination's accomplishments are simply not being communicated effectively. While it's responsible for only a small slice of GE's total revenue pie (8% of $173B), it's list of worldwide accomplishments - heralded by governments, business and environementalists - is impressive and worthy, yet it fails to add to shareholder value.
Remember, the first step in solving a problem is admitting you have a problem. Time to re-think the 'ole communications strategy. Ecomagination is definitely worth it.
Cortland Coleman
in Environment, Finance, Public Relations, Energy, Clean Tech, Climate Change, General Electric
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