Let’s take a look at how GE Silicones transformed automotive market dynamics. In the competitive landscape of the automotive industry, even industry giants like General Electric (GE) face challenges. The story of GE’s Automotive Silicones Group serves as a testament to the power of strategic thinking and innovation in the face of adversity.

The Downturn:

Once a stalwart in the North American Automotive Market, GE’s Silicones Group encountered a formidable decline of over $15 million in sales. With competitors like Dow Chemicals and Wacker Silicone dominating the market, GE found itself struggling to maintain relevance and competitiveness.

Identifying the Challenge:

Recognizing the urgent need for change, GE sought to understand the root causes of its diminishing market presence. A comprehensive Product Line Audit revealed critical insights into areas where GE’s products lagged behind competitors and where they held unique advantages.

Strategic Pivot:

Rather than engaging in a costly and uncertain battle to compete directly with Dow and Wacker in one-part silicone technology, GE opted for a strategic pivot. Leveraging its existing rubber coating technology, GE identified a niche market opportunity to address “buzz and squeak” issues in automotive rubber seals.

Execution and Success:

With a clear strategy in place, GE mobilized its resources to validate and commercialize the rubber coating technology. Collaborating with headquarters and product technology teams, GE focused on targeted marketing efforts and product sales initiatives.

Results and Growth:

The decision to prioritize rubber coating technology yielded impressive results. Within just 14 months of commercialization, GE realized a $5 million increase in sales. Furthermore, the product’s contribution margin soared to 60%, far surpassing that of traditional one-part silicone products.

It’s inspiring to see how GE Silicones transformed automotive market dynamics. Transformation of GE’s Automotive Silicones Group exemplifies the power of strategic thinking and adaptation in the face of adversity. By identifying and capitalizing on niche market opportunities, GE not only reversed its declining sales trajectory but also positioned itself as a leader in automotive silicone solutions. This success story serves as inspiration for companies navigating challenging market landscapes, illustrating the potential for innovation to drive sustainable growth and competitiveness. Feel free to contact us here to schedule a 30 minute consultation to learn more. Connect with us on Facebook and Linkedin!